piloting to scale: Bridging the deployment gap of climate-deep tech in the UAE

The UAE has set ambitious targets to achieve net-zero emissions by 2050. The electrification of commercial fleets, particularly in the last-mile delivery sector, represents a significant opportunity to contribute to this goal. As the e-commerce sector in the UAE continues to grow, there is increasing urgency to transition to EVs for last-mile logistics operations. However, as operators pilot EVs and develop plans to scale up operations, they encounter several challenges that hinder widespread adoption.

This research report analyses challenges and opportunities for UAE industry with the implementation of the Carbon Border Adjustment Mechanism (CBAM) by the European Union (EU) and United Kingdom (UK). This report also provides recommendations on how the public and private sectors in the UAE can adapt to CBAM. CBAM is designed to prevent “carbon leakage,” where manufacturing relocates from countries with stringent emission regulations to those with lax standards. It imposes a tax on the carbon content of imports from certain sectors. The report synthesises data collected over the course of a yearlong partnership between UICCA and the British Embassy in the UAE. This project included three policy dialogues, a stakeholder consultation, and extensive desk research. This report provides actionable recommendations for how the UAE can mitigate the effects of CBAM on local industry, while making policies that promote decarbonisation.

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.