United Arab Emirates

The UAE’s green economy strategy is anchored by the Net Zero by 2050 Strategic Initiative and the National Net Zero by 2050 Pathway, complemented by Federal Decree-Law No. (11) of 2024 on climate policy. Since 2023, the federal framework has consolidated sectoral decarbonisation programmes (energy, transport, buildings, waste, industry, agriculture), with coordination led by the Ministry of Climate Change and Environment and alignment with the UAE’s updated NDC. Recent policy packages include mechanisms for climate finance mobilisation, R&D and innovation support, workforce upskilling, and monitoring arrangements. Implementation is being phased and some sectoral delivery details continue to be operationalised.

The UAE maintains a federal corporate-governance framework for public joint-stock companies that requires listed firms to disclose board composition and governance information. In March 2021 the SCA made female representation on listed company boards mandatory; SCA’s 2025 update reports a substantial increase in women’s board seats since implementation. There is no legal requirement for employee representation in corporate boards, and inclusive governance mechanisms remain focused on disclosure and board-composition requirements rather than worker participation mandates. Engagement with SDGs is channelled through national bodies and disclosure guidance rather than binding corporate SDG obligations.

Federal authorities operate an official portal for public consultations listing open and closed consultations across ministries, and constitutional provisions emphasise equality and non-discrimination. In practice, consultation procedures are encouraged and used in specific policy areas (including economic and financial regulation, environmental initiatives, and service design), but they are not uniformly mandatory across all legislative or policy processes. Systematic ex-ante impact assessments centred on women, persons with disabilities, or local communities are not consistently required across government.

The National Strategy for Wellbeing 2031 remains the principal framework for integrating wellbeing into policy, comprising 90 initiatives and establishing a National Wellbeing Observatory to monitor indicators and inform decision-making. Wellbeing is embedded across individual, societal, and national pillars and is referenced in strategic planning since 2023. However, there is no comprehensive national wealth framework covering all capital types (natural, human, social, financial, produced) formally integrated into fiscal planning and budget processes.

Supervisors have advanced sustainable-finance rules and expectations. In June 2024, the UAE Sustainable Finance Working Group launched Principles for Sustainability-Related Disclosures for reporting entities. The Central Bank’s Rulebook sets Principles for the Effective Management of Climate-Related Financial Risks, including expectations for scenario analysis/stress testing (Principle 7) and sustainability-related disclosures; these are being integrated into risk management and supervisory dialogue. Public communications and reports also show continued government-level emphasis on SDG-aligned finance.

The UAE has advanced the integration of climate-related risk into financial governance through the Sustainable Finance Working Group (SFWG), which includes the Central Bank, Ministry of Finance, and regulators. In 2023, the SFWG adopted the Principles for the Effective Management of Climate-Related Financial Risks, aligned with Basel and NGFS standards. These principles have been operationalized through a mandatory climate risk stress-testing framework for banks, focusing on transition and physical risks using NGFS scenarios.

In 2024, the Central Bank initiated top-down and bottom-up stress-testing exercises for major regulated institutions. These tests are currently limited to climate risk, while social and ecological risks are not yet fully incorporated, and results are not published. The Ministry of Finance’s Financial Sustainability Standards Guide (2024) introduces sustainability frameworks for fiscal policy but does not directly address systemic environmental risks or links with monetary policy. The IMF has reported that monetary policy tools are not yet systematically aligned with climate objectives.

Following COP28, the UAE updated its commitments in the Third Update of its Second Nationally Determined Contribution (NDC), aligning sectoral decarbonization targets with UNFCCC principles. The UAE Green Agenda 2030 sets objectives to increase green exports by AED 24–25 billion and mainstream sustainability in trade and economic planning. Carbon trading platforms such as the Abu Dhabi Carbon Credit System and the Dubai Carbon Centre of Excellence are operational, supporting emissions reduction and allowing for potential linkage with international carbon pricing mechanisms. Trade agreements have not yet incorporated comprehensive sustainable development chapters, and provisions related to common but differentiated responsibilities remain under discussion. The UAE’s green taxonomy and carbon pricing instruments are under development but are not embedded in multilateral trade agreements.

In 2024 the UAE enacted a national framework for emissions measurement and crediting. Federal Decree-Law No. (11) of 2024 on the Reduction of Climate Change Effects establishes obligations for entities to measure, report and verify GHG emissions and enables a national carbon-credit registry. Cabinet Resolution No. (67) of 2024 establishes the National Register for Carbon Credits, setting MRV rules and thresholds (mandatory registration for entities emitting ≥0.5 MtCO₂e in Scope 1+2, voluntary for others). The Third Nationally Determined Contribution (NDC 3.0) (November 2024) updates national emissions-reduction targets. There is no economy-wide carbon tax or ETS in force and no legislated carbon-budget framework aligned to 1.5 °C.

The UAE’s green economy planning is structured under the Green Agenda 2030, coordinated by the Ministry of Climate Change and Environment with other ministries, local authorities, and the private sector. It includes 12 programmes covering energy, water, buildings, transport, sustainable consumption, and biodiversity, with monitoring indicators across environmental, social, and economic areas.

Sectoral sustainability strategies include the Energy Strategy 2050, Green Mobility Strategy, Food Security Strategy, Circular Economy Policy, and Green Building Codes. Monitoring responsibilities are distributed across ministries, and integration levels vary by sector. The National Climate Change Plan 2017–2050 complements this framework by setting strategic mitigation and adaptation priorities. The UAE Circular Economy Council coordinates circularity-related strategies, with a mandate limited to resource use.

The UAE Circular Economy Policy (2021–2031) outlines a national framework for sustainable resource use, reuse, and circular production models. It includes sectoral priorities—transport, manufacturing, food systems—and supports clean production, remanufacturing, and eco-industrial clusters. The Circular Economy Council, restructured in 2024, oversees implementation of 22 national policies and coordinates public-private action, including textile recycling and aluminium reuse initiatives. The Council promotes innovation platforms, capacity building, and performance monitoring, with clear alignment to the “We the UAE 2031” vision. However, while ambitious, the roadmap lacks explicit CMUR targets and consumer repair rights, and standards for critical transition minerals remain underdeveloped.

The National Electric Vehicles Policy sets national goals for electrification, aiming to reduce transport energy consumption by 20% and achieve 50% EV penetration by 2050. The policy is supported by the deployment of a nationwide charging network. Dubai’s Green Mobility Strategy 2030 targets 30% electrification of public-sector fleets and 42,000 EVs in use by 2030. Abu Dhabi’s Green Bus Program is piloting electric and hydrogen buses, with full fleet transition by 2050. Incentives include toll exemptions, free registration, and preferential parking, with 1,000 public charging stations planned by 2025. Freight electrification and targets for all transport modes are under discussion.

The updated Energy Strategy 2050 (2023) sets goals to triple renewable energy capacity by 2030, reaching 29% of power generation, and achieve 50% clean energy (including nuclear) by 2050. Investment plans estimate AED 150–200 billion by 2030 across solar, wind, hydrogen, and waste-to-energy projects. By mid-2025, 25 major projects were underway, adding 21,714 MW of capacity, with solar as the leading source.

The roadmap is supported by Masdar and includes energy efficiency improvements of 42–45% and the creation of an estimated 50,000 green jobs by 2030. Despite progress, renewables’ share of final energy consumption remains below 90%, and coverage in demand-side sectors varies.

The UAE continues to position green jobs as a strategic pillar of its green economy transition. The Jobs & Skills for the UAE’s Green Economy Transformation report, coordinated by the Ministry of Climate Change and Environment and the Mohammed Bin Rashid School of Government, provides the first national estimate of green jobs—83,000 projected by 2030, up from 49,500 in 2018. The report identifies key sectors (renewable energy, transport, waste, tourism, and public sector) and proposes multi-stakeholder working groups to coordinate policy, research, and skills development.

However, while green job creation is acknowledged and sectoral estimates exist, there is no unified national action plan with specific targets, social protection mechanisms, or transition planning for workers in brown sectors. Marginalized groups, including migrant workers and informal labor, are not explicitly included in green employment strategies. The UAE’s Just Transition Work Programme, launched at COP28, promotes inclusive dialogue but remains non-prescriptive and exploratory.

The UAE operationalised the Just Transition Work Programme (JTWP) under the UNFCCC, hosting national dialogues and ministerial roundtables at COP28 and continuing through 2024–2025. Federal Decree-Law No. (11) of 2024 embeds just transition principles within climate governance, aligning emissions targets with socioeconomic development. Sectoral decarbonisation roadmaps and reskilling initiatives have been initiated for high-emission industries. While the direction is set, detailed benefit-sharing mechanisms and comprehensive sector-level guidance are still in early implementation stages.

Federal SME support focuses on entrepreneurship, access to finance and government procurement. Ministry of Economy materials (2024–2025) describe the National Agenda for Entrepreneurship and SMEs and a suite of programs (forums on government procurement, internationalization missions, and accelerators). The Ministry of Finance also highlights SME support as a policy priority. There is no distinct legal form for “social enterprise” in federal company law, and current national instruments for MSMEs are general rather than targeted specifically at green MSMEs or social enterprises; voluntary guidance on decarbonisation exists via MoCCAE initiatives.

In February 2025, the UAE declared the “Year of Community”, launching a series of initiatives under the Dubai Social Agenda 33, backed by an AED 208 billion budget. These include the Community Development Fund Policy, Dubai Child Protection Protocol, and Super Block pedestrian zones, aiming to enhance social cohesion, family support, and inclusive urban development. While these initiatives reflect growing attention to social welfare, none are explicitly linked to green economy participation or transition planning.

The Green Agenda 2030 outlines broad goals for social development and quality of life, but does not include pilots for universal basic income, job guarantees, or community ownership models. Migrant workers—who make up ~85% of the population—remain excluded from most social protection schemes, and there is no evidence of targeted green economy access programmes.

Despite increased investment in social infrastructure and digital inclusion, innovative social protection linked to green transition remains absent, and no pilot schemes or strategic frameworks have been launched to bridge social equity and environmental reform.

The UAE’s National Biodiversity Strategy and Action Plan 2014–2021 has lapsed, but conservation measures continue under more recent cross-cutting frameworks, including the National Framework for Sustainable Development (2023). The country maintains a national protected-area network across terrestrial and marine ecosystems and is party to the Convention on Biological Diversity. SDG 14 and SDG 15 references appear in national strategies and reporting since 2023. An updated NBSAP aligned with the Kunming-Montreal Global Biodiversity Framework, with interim targets and a published implementation plan and progress assessments, has not yet been issued.

The National Food Security Strategy 2051 and the National System for Sustainable Agriculture provide the policy framework for food system resilience. The strategy includes 38 initiatives for climate-smart agriculture, vertical farming, food waste reduction, and nutrition. The Emirates Sustainable Agriculture Label, launched by MoIAT, certifies producers against environmental, social, and economic criteria. Partnerships with private firms (e.g., Al Dahra, Elite Agro) support domestic production and innovation. The framework includes long-term goals, but subsidy reform, regenerative agriculture, and public procurement for healthy diets are still under development.

The UAE’s National Food Security Strategy 2051 and the National System for Sustainable Agriculture form a robust framework for sustainable food systems. The strategy includes 38 initiatives targeting resilient agriculture, food waste reduction, and improved nutrition. It aligns with SDGs 2 and 12, promoting climate-smart agriculture, vertical farming, and water-efficient techniques. The Emirates Sustainable Agriculture Label, launched by MoIAT, certifies farms and food producers meeting environmental, social, and economic sustainability standards. Public-private partnerships (e.g., Al Dahra, Elite Agro) support domestic production and innovation. However, while the strategy includes long-term goals and ecological footprint reduction, subsidy reform and regenerative agriculture frameworks remain underdeveloped, and healthy diet promotion through public procurement is not yet fully institutionalized.

Nature-positive finance has advanced through national and international initiatives, including Islamic-finance-based vehicles launched around COP28 to mobilise capital for nature-based solutions and resilience. Domestic actors (e.g., Emirates Nature–WWF and partners) have promoted blended finance, project pipelines, and public-private partnerships for biodiversity outcomes since 2023. Evidence of comprehensive fiscal reform to eliminate harmful subsidies or to introduce biodiversity-linked taxes and systematic public transfers to local communities is still limited.

During the COVID-19 crisis, the UAE implemented stimulus packages amounting to roughly USD 8.7 billion (about 2.8 % of GDP), consisting largely of untargeted support such as fee reductions, liquidity support for SMEs, rent deferrals, and infrastructure acceleration. These measures lacked environmental conditionality and included indirect support to high-emission sectors, such as fee cancellations for shipping and aviation and electricity subsidies for fossil-fuel-based industries.

Since 2023, the government has shifted its focus to long-term economic transformation under the Net Zero 2050 Strategic Initiative and the Energy Strategy 2050 update, which allocate AED 150–200 billion through 2030 for clean energy, hydrogen, grid modernisation, and industrial decarbonisation. These investments form part of structural diversification rather than a discrete, time-bound “green recovery” programme. No dedicated post-crisis stimulus framework with social or environmental conditionality has been adopted at the federal level.