Abstract

The growing urgency to address climate change has placed carbon markets and carbon capture technologies at the core of global climate strategies. This thesis looks into whether the United Arab Emirates can develop its emerging carbon credit framework into a platform that supports viable private investment and national sustainability goals. While systems that are established, such as the EU Emission Trading System (EU ETS) and voluntary schemes, such as Verra's Verified Carbon Standard (VCS), provide mature models, the UAE shows a unique case: a market still in its early stages yet backed by ambitious climate commitments and world-class hydrocarbon infrastructure. This research assesses the feasibility of developing a Carbon Capture, Utilization, and Storage (CCUS) enterprise within this developing market. A mixed-methods approach was adopted, combining sector-by-sector market analysis, original financial modelling of revenue per kilogram of CO₂, break-even analysis across nine scenarios, and policy benchmarking against leading international frameworks. Attention was given to the UAE’s hard-to-abate sectors: natural gas processing, steel, cement, fertilizers, and power generation, which collectively represent over 90% of the UAE’s major emitting sectors. The analysis finds that only two CCUS pathways are commercially profitable in the UAE today without government support: natural gas processing combined with Enhanced Oil Recovery (EOR), yielding a net profit of $0 to +$50 per ton of CO₂; and ammonia or fertilizer production combined with EOR and urea feedstock, yielding +$0 to +$50 per ton. All other sectors require additional policy support, such as a domestic carbon incentive of approximately $50/t, to become commercially attractive.  The thesis concludes with sector-specific recommendations for investors and policymakers to unlock the remaining revenue potential, close the 7.7-million-ton gap between current and targeted CCUS capacity, and position the UAE as a credible global hub for low-carbon industrial investment.   Keywords: Carbon Capture, Utilization and Storage (CCUS); Carbon Credits; Carbon Markets; United Arab Emirates (UAE); Enhanced Oil Recovery (EOR); Break-Even Analysis; CCUS Investment Feasibility.

Publication Date

8-2026

Document Type

Thesis

Student Type

Graduate

Degree Name

Engineering Management (ME)

Advisor

Ghalib Kahwaji

Advisor/Committee Member

Pablo Izquierdo Lopez

Advisor/Committee Member

Fuat Kosanoglu

Campus

RIT Dubai

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