Abu Dhabi’s new carbon capture policy positions it as a regional leader in low-carbon innovation

Abu Dhabi has rolled out a new Carbon Capture Policy, aiming to establish a comprehensive set of regulations around carbon capture, utilisation, and storage (CCUS) throughout the emirate, officials revealed. This move signals a pretty significant shift in how the government approaches industrial decarbonisation and overall climate strategy.

As per the announcement from the Supreme Council for Financial and Economic Affairs (SCFEA), the policy lays out operational standards, coordinates infrastructure development, and tries to attract private sector investment into CCUS projects. The goal is to help cut emissions in sectors that are traditionally hard to decarbonise, while also positioning Abu Dhabi as a regional leader in low-carbon innovation and industrial competitiveness. Honestly, it seems like a strategic move to boost the emirate’s role in clean energy tech.

Design and objectives

The policy rests on a few core pillars. One major focus is making the most of domestic geological resources for long-term CO₂ storage, kind of a way to tap into local underground formations. It also encourages shared infrastructure for carbon capture and transport, which should improve investment efficiency. By promoting common facilities, regulators hope to reduce deployment costs and speed up the scaling of CCUS across different industries.

SCFEA said the framework will help coordinate planning for capture, transport, and storage assets, and it aims to foster partnerships between government entities, industry players, and technology providers. The document highlights the importance of regulatory clarity and collaboration, viewing these as key for creating bankable projects that can attract international capital. It’s interesting, right?

Policy in the context of Abu Dhabi’s climate agenda

This Carbon Capture Policy fits into Abu Dhabi’s wider climate commitments. Official documents outline a target to reduce emissions by about 22% by 2027, as part of the Abu Dhabi Climate Change Strategy, which also aims for the emirate to reach net zero by 2050. The new CCUS framework is designed to work alongside other mitigation and adaptation measures to hit those targets.

Some industry watchers point out that the policy complements recent moves toward more transparent emissions data. According to the Environment Agency – Abu Dhabi, an international standard measurement, reporting, and verification (MRV) program kicked off in December 2024, requiring large emitters to monitor, report, and verify greenhouse gases annually. First reports are due in 2026. This system is expected to underpin any future carbon pricing schemes and serve as the backbone for CCUS deployment data.

Existing projects and prior collaborations

Abu Dhabi’s efforts build on a series of industry initiatives and strategic alliances. For instance, ADNOC, the state-linked oil giant, has been involved in CCUS for quite some time. Back in 2020, they signed a strategic framework agreement with Total to explore solutions around carbon capture, storage, and utilisation. More recently, in October 2023, ADNOC teamed up with Occidental to undertake engineering studies for a large-scale direct air capture (DAC) plant. This ambitious project envisions a unit capable of capturing around one million tonnes of CO₂ annually, connected to ADNOC’s existing infrastructure for injection and permanent storage in saline reservoirs, reservoirs that aren’t used for oil or gas.

This policy essentially formalizes a regulatory environment for these kinds of technologies and projects, many of which have been developing through various commercial partnerships. Industry experts expect it to help reduce permitting uncertainties, things like pipeline, storage, and injection operations, and establish clearer rules around ownership, liability, and monitoring over the long term.

Economic and environmental trade-offs

SCFEA frames this policy as a way to balance decarbonisation with economic growth. They claim it will create jobs and attract investment into carbon management and tech development. The government emphasizes protecting ecosystems and ensuring long-term resource sustainability as fundamental goals.

However, some industry analysts caution that CCUS alone isn’t enough. Many point out that deploying carbon capture technologies must go hand-in-hand with faster deployment of renewables, increased energy efficiency, and reduced fossil fuel use if the goal is truly net zero. The success of this policy will depend heavily on effective incentives, long-term storage liability frameworks, and how well CCUS is integrated with MRV systems and potential carbon pricing mechanisms.

International and regional implications

By formalizing CCUS standards, Abu Dhabi is clearly signaling its intention to become a key regional player in this space. The policy explicitly promotes cross-border collaboration and encourages private investment, which could attract tech suppliers and financiers from Europe, North America, and Asia. Market insiders say that regulatory certainty is absolutely essential if Abu Dhabi hopes to realize large-scale projects and mobilize both concessional and commercial funds.

Implementation challenges

Of course, several practical questions remain. The policy will need detailed secondary regulations, on things like where to select storage sites, how to monitor and verify operations, and how to officially close out a site. It also has to clarify commercial arrangements for shared infrastructure and establish rules for transporting CO₂ across industrial clusters. While the MRV system will provide much of the emissions data, stakeholders will be eager to see how timelines for permits, fiscal terms, and liability regimes are finally resolved.

Overall, this Carbon Capture Policy represents a major institutional step for Abu Dhabi. It aligns formal regulation with ongoing industry projects and national climate goals. Whether it can actually accelerate deployment at scale will depend on how quickly and clearly follow-up regulations are introduced, the availability of financing, and how well the policy meshes with broader net-zero plans. If executed effectively, it could lower the costs associated with decarbonising heavy industry and solidify Abu Dhabi’s role in the evolving regional low-carbon economy.

Source: Noah Wire Services