Climate Insider Brief:
- Despite its status as a major oil producer, the UAE is actively positioning itself as a regional leader in climate tech and the transition to a low-carbon economy.
- The country’s commitment to renewable energy and its goal of tripling the share of renewables by 2030 showcase its dedication to addressing climate change.
- Similar to Silicon Valley, the UAE is actively fostering an entrepreneurial ecosystem, recognizing the need to transition away from oil.
The United Arab Emirates (UAE) is progressing as a regional leader in climate tech developments and the transition to a low-carbon economy, challenging preconceptions associated with its oil-rich status. As the UAE recently hosted COP28 in Dubai, there has been a shift in focus towards the importance of climate tech and carbon offsetting in entrepreneurship and innovation. This article explores how the UAE is becoming a hub for climate tech, emphasising its commitment to renewable energy, startup support, and a culture of social innovation.
Despite being a major oil producer, the UAE is actively diversifying its energy portfolio. The country has updated its energy strategy to triple the share of renewables by 2030, with a goal of having 55% of Abu Dhabi’s electricity sourced from clean energy by 2025. This commitment aligns with global efforts to limit global warming to 2°C or even 1.5°C. The UAE’s geographical location at the crossroads of Africa, Asia, and Europe positions it as a global investment hub, attracting companies across various industries and fostering a culture of innovation.
The progress of climate tech developments in UAE can be compared to Silicon Valley; similar to the can-do culture of Silicon Valley, the UAE is actively fostering an entrepreneurial ecosystem. The country’s leaders and entrepreneurs recognize the need to transition away from oil, acknowledging that the last barrel will be shipped sooner rather than later. In a very significant move, the UAE promised over US$4 billion for clean energy in Africa, demonstrating its commitment to being at the forefront of the energy transition. The country’s proactive approach resembles California’s historic transformation from an oil giant to a champion of renewable energy.
Moreover, there have been multiple initiatives set to support climate tech startups in the UAE; examples include Hub71, UAE’s leading tech startup support organisation. During COP28, New Energy Nexus brought 50 climate tech founders to the UAE in collaboration with the COP28 Secretariat and the Abu Dhabi Investment Office (ADIO). These startups, ranging from smart controls for air conditioning to e-mobility solutions in Africa, were showcased to regulators, decision-makers, and investors, connecting them to resources and potential customers. This program aims to build an ongoing engine of support for climate startups in the UAE.
Even though the UAE has made significant progress, it is important to note that the intersection of startups and venture capital remains crucial. iloting green technology solutions in a realistic environment (Technology Readiness Level 5+) and fostering impact investing are key components. Lessons from countries like Germany, with organisations like SPRIND and MBG, highlight the importance of bridging research and entrepreneurship and supporting SMEs with equity or risk-sharing.
UAE can further solidify its position as a hub for climate tech by strengthening its ecosystem. This includes stronger collaborations between public and private entities, increased investment in research and development, and incentivizing responsible investments. Further, a comprehensive sustainability framework should engage universities, industry leaders, and the public in testing and implementing innovative solutions.
To ensure the success of green companies globally, the UAE must work towards creating a regulatory framework, implementing incentive measures, and investing in education and awareness programs. Building a strong local customer base for green products and services is crucial for these companies to thrive not only in the UAE but also on the global stage.
To stay informed about the climate industry explore our latest climate tech news.
Featured Image: Credit: Entrepreneur.com
