University of Vaasa - Vaasan yliopisto

CORPORATE SOCIAL RESPONSIBILITY PRIME
MOVERS IN THE RENEWABLE ENERGY SECTOR:
THE CASE OF MASDAR INITIATIVE IN ABU DHABI
Abstract
Toufic Mezher,
MASDAR Institute of Science and Technology, Abu Dhabi, UAE
Samer Tabbara and Nawal Al Hosany, MASDAR, Abu Dhabi, UAE
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Abu Dhabi, in United Arab Emirates (UAE), has set the first renewable energy policy in the
region in January 2009. The policy calls for at least seven percent of the Abu Dhabi’s power
generation capacity to come from renewable energy sources by 2020. In 2006, the leadership of
UAE and Abu Dhabi made a strategic decision to establish a globally competitive renewable
energy sector in the country and hence the MASDAR Initiative was created. This paper will
focus on corporate social responsibility of MASDAR and the role the firm is playing as the
“Prime Mover” in the renewable energy sector in UAE and the region. First, the literature on
corporate social responsibility is reviewed. Second, the environmental challenges of UAE are
highlighted. Finally, the Masdar Initiative is highlighted and the role of Abu Dhabi Future
Energy Company (ADFEC) as a “Prime Mover” in sustainability and corporate social
responsibility is discussed.
Keywords: CSR, Renewable Energy, Masdar, Prime Mover, Abu Dhabi.
Introduction
Human activities are the most important factor that is affecting our climate. This was
confirmed by the Third (2001) and Fourth (2007) Assessment Reports of the United
Nations’ Intergovernmental Panel on Climate Change (IPCC 2007). Carbon dioxide
(CO2) is one of the most important anthropogenic Green House Gases (GHG).
Annual emissions, energy as the main source, grew by about 80% between 1970 and
2004. Reduction of CO2 emissions from energy use can be done in three ways:
energy efficiency, renewable energy (RE), and carbon capturing and sequestration.
Renewable energy is an attractive option because it substitutes for fossil fuel and the
economic feasibility of renewable energy technologies is improving with time (Clift
2007; Sims 2004). Fossil fuel will still remain the major source of energy for
decades to come but eventually alternative sources of energy will surpass fossil fuels
(Zerta et al. 2008).
Developing a renewable energy sector in a country will have a positive impact on its
sustainability and will provide a wide variety of socioeconomic benefits, contribute
to the diversification of energy supply, enhance regional and rural development, and
create an opportunity for a domestic industry and job creation potentials (del Rıo and
Burguillo 2009). Newly established RE companies are considered to be in the