CBAM and the UAE: A Path Forward for Industry and Government

This Report shares insights from the inaugural Policy Hack held under the Waste to Zero Initiative, a joint effort led by UICCA and Tadweer Group to drive decarbonisation across the global waste sector. Centered around six thematic workstreams, the event gathered voices from across government, industry, and civil society to tackle some of the most pressing barriers to waste sector transformation, from financing and legislation to behavioural change and circular innovation. The Policy Hack provided a platform for open dialogue and collective problem-solving, yielding actionable recommendations such as focusing on minimising food waste, introducing robust policy frameworks on recycling and circularity, and building unified waste data infrastructure for the UAE. These proposals and others contained in the Policy Hack Report serve as an important step for advancing toward a circular economy and decarbonised waste system in the UAE.

As the UAE stands at a critical juncture with just 25 years to achieve its bold net-zero ambition, the UICCA Forum convened by the UAE Independent Climate Change Accelerators (UICCA) marked a profound moment in our collective climate journey. This gathering wasn’t merely a discussion—it was a catalyst for the transformative action our region demands.

The United Arab Emirates (UAE) has rapidly emerged as a leading hub for entrepreneurship and startups across diverse sectors, driven by an innovation-focused economy and a thriving ecosystem. As of 2024, the UAE’s funding landscape has been experiencing promising growth, with venture capital (VC) and private equity (PE) funding projected to exceed $2 billion by 2024 year-end, a sharp rise from $638 million in 2023. This growth reflects increasing investor confidence and evolving funding strategies. Despite this, climate-tech investments remain modest compared to other sectors. The funding gap is most pronounced as startups transition from early-stage to growth-stage funding, particularly in capital-intensive sectors like climate-tech. This policy brief focuses on addressing the critical funding gap faced specifically by climate-tech startups in the UAE, particularly those seeking to scale their operations. By examining the regulatory, financial, and infrastructure challenges in the sector, this policy brief outlines actionable solutions to support startups to expand locally and eventually regionally and globally.

Climate change is one of the most pressing issues of our time, threatening global ecosystems and nearly every facet of human existence. Among its many effects, displacement of human communities from climate change is a particularly concerning humanitarian issue. Communities in the Middle East and North Africa (MENA) region are highly vulnerable to climate-induced displacement and have already begun to face severe environmental challenges such as desertification, water scarcity, and heatwaves.

The UAE Independent Climate Change Accelerators (UICCA), the German Embassy in the UAE, and the Climate Talks Initiative, have co-hosted a policy hack titled Empowering SMEs to Drive Supply Chain Decarbonisation in Heavy Industry, as part of the ongoing UICCA Policy Hacks. The event convened policymakers, industry experts, and SME leaders to develop actionable strategies for decarbonising supply chains within the industrial sector, particularly heavy industry supply chains.