From COP28 to COP30 - UAE strengthens its climate leadership

Introduction
 At historic COP28, countries came together to deliver the UAE consensus- the most ambitious and comprehensive set of negotiated climate outcomes since COP21. It also marked the start of the world’s first “global stocktake” to assess progress since the Paris Agreement, an exercise that will influence future policy and accelerate the transition to net zero.

As the UAE looks ahead to COP30 in Belém, Pará in Brazil,  the outcomes achieved so far will inject both pace and stability into the COP process. The country has moved from ambitious pledges towards implementing legal and financial structures that will enable long-term climate goals.

UAE consensus remains an ambitious negotiated response to the Global Stocktake (GST) and it will be seen as the compass for future discussions and agreements. At the COP30, action agenda will be guided by six thematic axes and will set more ambitious objectives. The six thematic areas are:  [1]
  1. Transitioning Energy, Industry, and Transport
  2. Stewarding Forests, Oceans, and Biodiversity
  3. Transforming Agriculture and Food Systems
  4. Building Resilience for Cities, Infrastructure, and Water
  5. Fostering Human and Social Development
  6. Unleashing Enablers and Accelerators, including on Finance, Technology, and Capacity Building.

UAE’s Role in Global Climate Leadership  [2]
The UAE was the first Middle Eastern country to sign the Paris Agreement in 2015, and since then has consistently advanced climate diplomacy. At COP28, key outcomes included:
  • A commitment to triple global renewable energy capacity by 2030.
  • A global target to halt deforestation by 2030.
  •  USD 100 million contributions to loss and damage fund to support climate-vulnerable countries.
  • Increased funding for adaptation, including strengthening the Green Climate Fund.
  • Emission reductions that is aligned with science 43% ghg emissions reductions by 2030 and 60% by 2035.
  •  Unprecedented reference to transition away from all fossil fuels in energy systems.
These developments underscored the UAE’s position as a convenor of global climate action while reinforcing its own domestic strategy of achieving net-zero emissions by 2050.

Green Investments and Climate Finance in the UAE
For hydrocarbon-reliant economies such as the UAE, green investment has become central to economic diversification. The country has mobilised significant resources towards clean energy, while encouraging domestic and international investors to participate in its transition.
Key investment vehicles include:
  • Dubai Green Fund – sponsored by Dubai Electricity & Water Authority (DEWA), financing sustainable projects.
  • ADGM Green Fund Designation – allowing investment in green assets or communications supporting the green economy.
  • ADGM Climate Transition Fund – targeting decarbonisation and climate transition projects.
  • Altérra Climate Fund – launched at COP28 with a USD 30 billion UAE commitment (including USD 5 billion for the Global South), aiming to mobilise USD 250 billion in climate-related investments by 2030.
  • Masdar Green Bonds – raising capital for renewable energy projects domestically and abroad.
The UAE banking sector has also pledged over USD 270 billion in green financing by 2030, led by major lenders such as First Abu Dhabi Bank (FAB) and Mashreq Bank. We have recently seen that real-estate sector is also contributing with its commitments, where Sobha developers raised its inaugural USD 750 million green sukuk. And Aldar Investments mandated two USD 145 million green sukuk.

ESG Regulations in the UAE
COP28 marked a turning point, with the UAE introducing more robust regulatory measures to integrate ESG into corporate practice:
  • Climate Change Law (Federal Decree Law No. 11 of 2024): obliges businesses to monitor and report greenhouse gas emissions, implement reduction strategies, and prepare climate adaptation plans. It came into force on 30 May 2025, with full compliance required by May 2026.
  • Cabinet Resolution No. 67 of 2024: established the National Register for Carbon Credits (NRCC), introducing mandatory registration and verification for entities with substantial emissions.
  • Guidelines on Sustainable Aviation Fuel (SAF): requiring at least 1% of fuel at UAE airports to be sustainable and locally produced by 2031.
These measures demonstrate the UAE’s intent to align corporate activity with its Net Zero 2050 Strategy.

ESG Reporting and Financial Market Developments
The UAE’s capital markets are playing a crucial role in embedding ESG standards:
  • Dubai Financial Market (DFM): requires annual sustainability reports aligned with Global Reporting Initiative (GRI) standards and has introduced an ESG index for listed companies.
  • Abu Dhabi Securities Exchange (ADX): applies similar sustainability reporting obligations and provides guidance for effective disclosures.
  • COP28 UAE TechSprint: launched by the Central Bank of the UAE, in collaboration with the Bank for International Settlements, this programme promotes fintech solutions for ESG reporting, green financing, and investment tracking.
These initiatives are designed to give investors confidence, promote transparency, and create an enabling environment for sustainable finance.
Broader ESG and Sustainability Initiatives

The UAE has also advanced:
  • The Middle East Green Initiative and Arab Coordination Group collaborations.
  • The Corporate Governance Code issued by the Securities and Commodities Authority, mandating ESG disclosures for public joint stock companies.
  • The Mangrove Restoration Initiative, under the UAE’s updated NDC 3.0, supporting biodiversity and carbon sequestration.
Conclusion
The UAE has successfully positioned itself as a hub for climate finance, ESG regulation, and sustainable investment. From green bonds to climate transition funds and robust regulatory frameworks, the country is moving beyond policy commitments into measurable outcomes.

As COP30 approaches and identifies to put people at the centre of COP30 the UAE is expected to further strengthen its leadership by building on the foundations laid at COP28. For businesses and investors, the message is clear: we must continue to make progress through concrete actions and measurable positive impact. 

[1] Fourth_CPD_Letter.pdf
[2] The-UAE-Consensus_Eng_Action-Agenda_16092024.pdf