Masdar City will cost $22bn (£11.3bn), take eight years to build and be home to 50,000 people and 1,500 businesses.
The city will be mostly powered by solar energy and residents will move in travel pods running on magnetic tracks.
Abu Dhabi has one of the world's biggest per capita carbon footprints and sceptics fear Masdar may be just a fig leaf for the oil-rich Gulf emirate.
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