Issue Brief

Climate Change: Recommendations for the United Arab Emirates

December, 2023
Issue Brief

Climate Change: Recommendations for the United Arab Emirates

This publication proposes nine (9) key pillars to address climate change in the UAE which include: (i) Status quo – climate policy landscape, (ii) Prioritise – climate management, (iii) Diversify – economy for climate transition, (iv) Enhance – climate transparency, (v) Report – enterprise-level GHG emissions, (vi) Finance – net-zero strategy, (vii) Secure – food systems, (viii) Empower – technology-enabled climate mitigation and (ix) Unify – climate action.

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United Arab Emirates (UAE) is one of the largest economies in the Gulf Cooperation Council (GCC) and is the world’s 35th largest emitter of greenhouse gases (GHGs), representing 0.53% of global emissions . UAE’s median temperature has risen above the global average, approximating to 1.8°C since 1900. The country is vulnerable to climate impact due to its low-lying coastal areas, susceptibility to desertification and drought as well as food insecurity.

Consequences from physical climate risks will be experienced by the national economy as 85% of population and more than 90% of infrastructure is located in coastal areas. This would harm desalination plants, power stations, transport and the tourism industry. Tackling UAE’s climate challenges through innovation and technology can give the Emirates a first-mover advantage to achieve long-term growth and improve its resilience to climate change.

UAE has exercised several policy measures to preserve the environment, while balancing economic and social development. It became the first country in the Middle East, North Africa and Pakistan (MENAP) to pursue a net-zero pathway in line with the Paris Agreement upon the launch of the UAE Net Zero by 2050 strategic initiative. UAE revised its Nationally Determined Contributions (NDCs) in 2023 to 40% of business-as-usual (BaU) emissions by 2030, amounting to an absolute reduction of 119 million tCO2e (tonne of carbon dioxide equivalent).

The National Climate Change Plan is a robust framework that comprises of the following three (3) key pillars;

  1. GHG Emissions Management - develop a national GHG emissions database,
  2. Building Climate Resilience - assess climate risk and implement adaptation planning and
  3. Economic Diversification - incentivise private sector to innovate.

UAE’s Energy Strategy 2050 has set emission reductions targets in four (4) key areas;

  1. Renewable Energy - increase share of clean energy by 50% in 2050,
  2. Energy Efficiency - increase energy efficiency by 40% in 2050,
  3. Hydrogen Strategy - increase hydrogen production to 15 Mtpa in 2050 and
  4. Green Mobility - increase share of electric vehicles and hybrid vehicles to 53% by 2050.

The 28th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28) hosted by UAE has reached landmark agreements which is testament to a global commitment for collective climate action. The government of UAE launched a private investment platform to drive climate investments to improve access to climate finance in emerging markets called ALTÉRRA. The Emirates committed USD 30 billion towards the investment platform which aims to mobilise USD 250 billion globally by 2030 as a climate- focused fund. The UAE Banks Federation announced an initiative from the UAE banking sector to mobilise AED 1 trillion in sustainable finance by 2030. A historic agreement has been reached to establish a loss and damage fund to support vulnerable countries to address climate impact. The Emirates has pledged USD 100 million to the fund.

In this Issue Brief we have presented nine (9) key pillars for the Emirates to continue to be a climate leader in MENAP:

  1. Status quo - UAE net-zero expected to contribute a 3.2% increase in national GDP, must include aviation and international shipping in NDC’s;
  2. Prioritise - the UAE must continue to prioritise policy-making and incentive schemes in line with global market forces and transition risks;
  3. Diversify - with fossil fuels contributing 30% to GDP and 13% to exports, the UAE must continue its path of economic diversification;
  4. Enhance - to increase transparency, UAE must enhance technical capacity to measure, monitor and disclose GHG emissions;
  5. Report - the UAE must mandate reporting regulations in line with global standards for large scale businesses;
  6. Finance - the UAE must ensure that key commitments made are realised and frameworks are introduced to increase investor confidence;
  7. Secure - UAE must continue to increase the climate resilience of its food systems;
  8. Empower - with a 99% internet penetration in the UAE, technology can be used to empower enterprises and their customers to take climate action;
  9. Unify - in line with the Paris Agreement, the UAE must adopt a unified approach that is mutually beneficial for the Emirates and their emerging market partners.
Download full report

Climate Change: Recommendations for the United Arab Emirates

This publication proposes nine (9) key pillars to address climate change in the UAE which include: (i) Status quo – climate policy landscape, (ii) Prioritise – climate management, (iii) Diversify – economy for climate transition, (iv) Enhance – climate transparency, (v) Report – enterprise-level GHG emissions, (vi) Finance – net-zero strategy, (vii) Secure – food systems, (viii) Empower – technology-enabled climate mitigation and (ix) Unify – climate action.

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