Sustainability Pays Off: UAE’s Green ICV Bonus Enhances Business Competitiveness

10X Technology

Mokshita P.
10X Technology
Published:

Sustainability Pays Off: UAE’s Green ICV Bonus Enhances Business Competitiveness

Under MoIAT’s Green ICV criteria, companies and manufacturers will be evaluated based on their efforts in sustainability, water management, circularity, and emissions reduction. This initiative aligns with UAE’s 2031 goals and Net Zero 2050 strategy, fostering competitiveness and environmental responsibility.

In a significant move toward enhancing sustainability practices across supply chains, the Ministry of Industry and Advanced Technology (MoIAT) announced the adoption of the Green ICV criteria and bonus within the National In Country Value (ICV) Program. This initiative empowers companies to earn bonus ICV points by committing to sustainability-related standards and policies, strengthening their competitiveness in the procurement landscape.

Under the new criteria, companies and manufacturers will be evaluated based on their efforts in sustainability, water management, circularity, and emissions reduction. Aiming to recognise and reward environmentally conscious practices, businesses will receive incentives for obtaining ISO certificates related to sustainable operations and Green Industries Environmental Labelling from the Environment Agency in Abu Dhabi.

Companies demonstrating a dedication to these sustainability parameters can gain up to a 3 percent bonus on their overall ICV score, granting them a significant advantage during the procurement process. This strategic move aligns with the objectives of the National Strategy for Industry and Advanced Technology, Operation 300bn, and the 'We the UAE 2031' initiative, focusing on achieving self-sufficiency, enhancing added value, and reducing emissions in the UAE's industrial sector.

The introduction of this bonus program not only fosters competitiveness but also contributes significantly to the UAE's Net Zero by 2050 strategic initiative. By incentivising companies to actively participate in national sustainability efforts and promote circularity, the UAE aims to achieve industrial security, enhance self-sufficiency, and reduce its environmental footprint.

Application Process

To apply for the new bonus, companies must be ICV certified and demonstrate their commitment to sustainability standards and policies. Applications will be independently evaluated, ensuring transparency and fairness in the process. Manufacturers and service providers can start applying for the Green ICV bonus starting from October 5th, 2023.

This initiative marks a pivotal step in the UAE's journey towards a more sustainable future, encouraging businesses to embrace Eco-friendly practices and contribute actively to the nation's environmental goals. Stay tuned for more updates as companies embark on this transformative path towards a greener, more competitive industrial landscape.