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UAE

Climate change taxation reforms and incentives in the UAE

Table of contents
  1. Has your country ratified the Paris Agreement? 
  2. Has your country introduced environmental taxes?
    1.  Energy taxes
    2.  Transport Taxes
    3.  Pollution taxes
    4.  Resources taxes
  3. Has your country introduced a carbon tax?
  4. Does your country offer sustainability incentives (tax credits, subsidies or other business incentives) to encourage taxpayers to engage in behaviours and develop technologies that can impact positively the environment? 
  5. Has your country recently announced tax reforms connected to climate change? 
  6. Other comments
UAE

1. Has your country ratified the Paris Agreement? 

Yes, in September 2016.

2. Has your country introduced environmental taxes?

2.1 Energy taxes

There are no direct or indirect environmental taxes in the UAE. However, there is an excise tax which is supposed to be levied on specific goods which are typically harmful to human health or the environment, but is not a very expansive list as yet (it just includes carbonated drinks, energy drinks and tobacco and tobacco products). 

2.2 Transport Taxes

N/A

2.3 Pollution taxes

N/A

2.4 Resources taxes

N/A

3. Has your country introduced a carbon tax?

No

4. Does your country offer sustainability incentives (tax credits, subsidies or other business incentives) to encourage taxpayers to engage in behaviours and develop technologies that can impact positively the environment? 

No

5. Has your country recently announced tax reforms connected to climate change? 

No

6. Other comments

Despite not having environmental taxes per se, the primary legislation for environmental protection in the UAE is Federal Law No. 24 of 1999 for the protection and development of the environment. Dubai, in particular, aims to have 75% clean energy by 2050, pursuant to the Dubai Clean Energy Strategy. 

Authors

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Portrait ofLaura Whiteley
Laura Whiteley
Associate
London