CBAM and the UAE: How Gulf Aluminium Exporters Are Affected
The UAE is one of the world's largest aluminium producers through Emirates Global Aluminium (EGA), operating EMAL and DUBAL. UAE primary aluminium using natural gas-powered electricity achieves actual embedded carbon of 8–10 tCO2/t — saving EUR 157–288/t vs the 12.40 default.
UAE CBAM Exposure
| Company | Sector | Actual (tCO2/t) | Saving vs default | Annual saving on 500,000t |
|---|---|---|---|---|
| EGA (EMAL + DUBAL) | Primary aluminium | 8.00–10.00 | EUR 157–288/t | EUR 78–144M |
| Emirates Steel Arkan | Steel (EAF + DRI) | 0.50–0.80 | EUR 89–110/t | EUR 89–110M per 1,000,000t |
UAE as an Aluminium Re-Export Hub
The UAE also serves as a re-export hub for aluminium from other Gulf producers. Aluminium from Bahrain (Alba — ALBA smelter) and Qatar (QATALUM) may transit through UAE ports before export to the EU. CBAM applies to the country of origin of the aluminium — not the country of export. UAE-origin aluminium (EGA/EMAL/DUBAL) and Bahrain-origin aluminium (Alba) have different embedded carbon values and must be documented separately.
Barakah Nuclear: Reducing UAE Grid Factor
The UAE's Barakah nuclear power plant (4 units, total capacity 5.6 GW) became fully operational in 2024. As Barakah's contribution to the UAE grid increases, the grid emission factor will decrease from the current ~0.40 tCO2/MWh. This will further reduce the actual embedded carbon of UAE EAF steel and aluminium over time.
Frequently Asked Questions
What is the CBAM exposure for UAE aluminium?
UAE's EGA produces approximately 2.6 million tonnes of aluminium annually. Using natural gas-powered electricity (grid factor ~0.40 tCO2/MWh), UAE primary aluminium achieves actual embedded carbon of 8–10 tCO2/t vs the 12.40 default — saving EUR 157–288/t.
Does the UAE have a carbon price eligible for CBAM deduction?
No. The UAE does not have a national carbon tax or ETS eligible for CBAM deduction. UAE manufacturers pay the full CBAM certificate cost with no deduction.
Does CBAM apply to Bahrain aluminium exported via UAE ports?
CBAM applies to the country of origin — not the country of export. Bahrain-origin aluminium (Alba) exported via UAE ports is treated as Bahrain-origin for CBAM purposes.
What is UAE's grid emission factor for CBAM?
UAE's grid emission factor is approximately 0.40 tCO2/MWh. The Barakah nuclear plant is gradually reducing this factor as it reaches full capacity.
Where can UAE manufacturers find ISO 14065 accredited CBAM verifiers?
See the UAE verifier directory at /verification-directory/uae/ for ESMA ISO 14065 accredited CBAM verification firms.
Calculate your CBAM saving → · Find a verifier → · What is embedded carbon? →