The UAE Independent Climate Change Accelerators (UICCA), the German Embassy in the UAE, and the Climate Talks Initiative, have co-hosted a policy hack titled Empowering SMEs to Drive Supply Chain Decarbonisation in Heavy Industry, as part of the ongoing UICCA Policy Hacks. The event convened policymakers, industry experts, and SME leaders to develop actionable strategies for decarbonising supply chains within the industrial sector, particularly heavy industry supply chains.
The session focused on addressing the critical role of SMEs in advancing sustainable manufacturing practices. Discussions highlighted key themes, including green financing, technological innovation, and standardised reporting mechanisms, aimed at overcoming the challenges SMEs face in reducing carbon footprints and integrating sustainable practices into supply chains.
According to the UAE Ministry of Economy, SMEs account for over 94 per cent of companies in the UAE and employ 86 per cent of the national workforce. Recognising their importance, the dialogue session explored ways SMEs can adopt sustainable practices, address existing barriers, and contribute significantly to decarbonising the manufacturing sector.
Sheikha Shamma bint Sultan bin Khalifa Al Nahyan, President and CEO of UICCA, said: "SMEs are not just part of the solution; they are key drivers of innovation and adaptability in the journey towards decarbonisation. However, they often face unique challenges, from accessing green financing to navigating complex regulatory frameworks. Through this policy hack, we aim to ensure that SMEs are equipped with the tools, frameworks, and opportunities needed to reduce emissions, build resilient supply chains, and contribute meaningfully to net-zero goals."
His Excellency Alexander Schönfelder, Ambassador of the Federal Republic of Germany to the UAE, said: “SMEs are the backbone of the global economy, yet they face challenges such as limited access to capital, expertise, and green technologies. Despite these obstacles, SMEs are at the heart of decarbonising supply chains in heavy industry, driven by their agility, entrepreneurial spirit, and pioneering role in innovation. With the right policy initiatives, we can empower SMEs to reduce emissions and enhance sustainability across their supply chains, not only helping them thrive in a green economy but also fostering innovation, job creation, and resilience across the entire industrial ecosystem.”
Saeed Ghumran Al Remeithi, Group CEO, EMSTEEL, said: "SMEs are a vital pillar of the UAE’s economy, and EMSTEEL is proud to participate in this important dialogue. As a co-chair of the Alliance for Industry Decarbonisation and a leader in sustainable steel production, we recognise the importance of collaboration in supporting SMEs to adopt greener practices. By engaging with stakeholders, providing supplier training, and equipping SMEs with the knowledge to navigate sustainability regulations and adopt responsible sourcing, we foster ethical practices and transparency, aligning our supply chain with our commitment to environmental stewardship."
The event brought together 49 participants from the public and private sectors. It featured a panel discussion with industry leaders, including Pavan Chilukuri, Global Head CCUS at Holcim Technology Ltd; Dr Dimitrios Dimitriou, Vice President, ESG and Sustainability at EMSTEEL; Adrienne Doolan, Founder of Sustain Global; and Dr Thomas Soulas, Head of Technology at Siemens Energy Innovation Centre Abu Dhabi. The discussion highlighted some of the key challenges and opportunities SMEs face in their decarbonisation efforts.
Following the panel discussion, participants engaged in collaborative breakout workshops, which resulted in actionable recommendations. The recommendations included expanding access to green financing, integrating advanced technologies, and improving mechanisms for emissions data collection, reporting, and verification.
UICCA, German Embassy in the UAE, and the Climate Talks Initiative will publish a report summarising key takeaways and policy recommendations from the event. This report will address the main gaps in supply chain decarbonisation, identify opportunities for collaboration, and outline enabling conditions required to achieve progress. It will be shared with policymakers and subject-matter experts in both the UAE and Germany to foster bilateral cooperation and inform future initiatives.
The policy hack aims to reinforce UICCA’s commitment to empowering SMEs to play an active role in decarbonisation. UICCA Policy Hacks provide a platform for cross-sector stakeholders to come together and collaboratively tackle specific issues, with the goal of developing actionable solutions and policy recommendations that support the growth of the green economy.
