The United Arab Emirates (UAE) has set ambitious targets to reduce greenhouse gas emissions, aiming for a 40% reduction from 1990 levels by 2030 and achieving net-zero emissions by 2050. However, recent analyses reveal mixed progress among UAE companies in meeting these goals.
In the aviation sector, Emirates Airline has been exploring the use of Sustainable Aviation Fuel (SAF) since 2017. The airline has partnered with leading biodiesel producers and conducted successful demonstration flights using 100% SAF in one engine. In October 2023, Emirates operated its first commercial flight using an SAF blend from Dubai to Sydney. Currently, the airline has suppliers set up to provide SAF at several airports worldwide, including its home base in Dubai.
In the transportation sector, Etihad Rail has launched a sustainable finance framework to potentially issue green bonds for low-carbon infrastructure projects. The framework outlines guidelines for green loans and bonds, aligning with Etihad Rail’s Environmental, Social, and Governance (ESG) strategy. This initiative supports the UAE's net-zero emissions goal by 2050.
Despite these initiatives, challenges persist. The UAE's continued reliance on fossil fuels for power generation and the planned use of carbon capture and storage (CCS) to mitigate emissions are areas of concern. Critics argue that these measures may not be sufficient to meet the country's ambitious climate targets.
In summary, while several UAE companies are making notable strides in reducing emissions through innovative projects and sustainable practices, the overall progress is uneven. Achieving the nation's climate objectives will require a comprehensive and coordinated effort across all sectors, with a focus on transitioning to renewable energy sources and implementing effective emission reduction strategies.