31/12/2014 07:42 AST
The World Economic Forum recently released the 2014 Global Energy Architecture Performance Index report, prepared in collaboration with Accenture, which ranked 124 countries according to their Energy Architecture Performance Index (EAPI) scores. Oman has been placed 111 in this report with an overall EAPI score of 0.39, while that of the Middle East and North Africa (MENA) region is 0.42 and the top performing country altogether, Norway, is 0.75.
The EAPI score is an overall score derived from individual scores a country received on its performance in economic growth and development, environmental sustainability as well as energy security and access. Within MENA, Oman ranks 13 out of 17 countries and in the Gulf Cooperation Council (GCC), fifth out of the six states. In terms of environmental sustainability, Oman has been placed at the bottom with the rank of 124 and a score of 0.12, while the average score in the MENA region is 0.26 and the global one is 0.46.
“One of the biggest reasons for this is that we are still heavily dependent on oil revenues for generating income and financing our economy,” says Dr Mehdi Ahmed Jaaffar, one of the founders of the Environmental Society of Oman (ESO). “Despite the current forecasts of the status of our hydrocarbon reserves and economic viability of the country’s average output production in the range of 900,000 barrels per day, we are still keen to expedite potential sources to maintain the output production level whether or not it is proven to be sustainable.”
Dr Mehdi explains that sustainable development is best defined as reasonably meeting the aspirations and needs of the current generation without jeopardising the right of future generations to meet their own needs. “The way to achieve sustainable development is to endorse a green economy that is inclusive and integrated,” he says. “Oman’s economy is still brown in every feasible aspect and we rank high in the global carbon footprint index,” continues Dr Mehdi. “Green economy is low carbon based, generates green job opportunities, conserves our natural resources and expedites renewable energy to provide the country’s demand for energy.”
Given how Oman is one of the most arid countries in the world, water availability and consumption is another important area for consideration. “The spiral deficit and monumental gap between supply and demand is yet another feature that ought to be examined when addressing sustainability,” says Dr Mehdi. “We are also heavily urbanised, yet our urban centres lack sustainable urban planning and our cities are not environmentally friendly.”
Concerning economic growth and development, Oman is ranked 108 globally with a score of 0.28 while the average in the MENA region is 0.31 and 0.45 amongst the 124 countries examined. “The figure is a clear indicator of the fact that as the population grows, so does the economic development,” says Dr Amit Sharma, an economics professor at the College of Banking and Finance. “Hence, depletion of scarce resources is unavoidable. Lately, falling oil prices have also contributed to the worries of policy makers in Oman.”
Dr Sharma says recent development projects show that policy makers foresighted the current situation and took the appropriate steps towards diversifying the economy. “This is the right time to use this opportunity to accelerate these projects in order to overcome the problem of over dependence on natural resources,” he says. “One of the suggested measures to improve the EAPI index is the development of human capital, which according to the World Bank, contributes to around 60 per cent-80 per cent of total wealth of nations in the world,” he explains. “An educated and well trained human capital can help the economy to transform from an oil dependent economy to an industry based economy.”
However, Oman ranks quite high in the category of energy security and access with a rank of 26 and a score of 0.79.
Oman Daily Observer
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