Launch event for Etihad's 'Greenliner' last year. All of the carbon generated by its flights next year will be offset by funding a Tanzanian forestry programme. Leslie Pableo for The National
Launch event for Etihad's 'Greenliner' last year. All of the carbon generated by its flights next year will be offset by funding a Tanzanian forestry programme. Leslie Pableo for The National
Launch event for Etihad's 'Greenliner' last year. All of the carbon generated by its flights next year will be offset by funding a Tanzanian forestry programme. Leslie Pableo for The National
Launch event for Etihad's 'Greenliner' last year. All of the carbon generated by its flights next year will be offset by funding a Tanzanian forestry programme. Leslie Pableo for The National

Etihad launches carbon offset programme


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Etihad Airways, the national airline of the UAE, will purchase carbon offsets to neutralise all of the CO2 emissions generated by its widebody 787-10 'Greenliner' aircraft next year.

The initative marks the first step of the airline's journey to cut its CO2 emissions to 50 per cent of last year's levels by 2035 and to reach full net zero emissions by 2050, which is a first for any major airline in the Gulf, it said. It will also roll out an additional voluntary programme offering flyers the chance to offset their own carbon emissions via its website.

“It’s encouraging to end a difficult year with such a positive move for the sustainable future of aviation," said Etihad chief executive, Tony Douglas. "While the year brought many challenges, sustainability has remained at the top of our agenda, and the work hasn’t stopped."

The company's offset programme has been sourced through Respira, a carbon offset finance business that specialises in creating tailored offsetting projects. Etihad's scheme will see it buy 80,000 tonnes of CO2 offsets that will fund a Tanzanaian forestry project.

The Makame Savannah Redd project is aimed at curbing deforestation and better managing local resources across 100,000 hectares of the Tarangire-Manyara ecosystem, the airline said.

London-based Respira is also setting up operations within Abu Dhabi Global Market, the emirate's financial free zone, to support Etihad's sustainability efforts and bring its offset expertise to the region, the company said.

“Respira offers a fresh approach to the carbon market by aligning the interests of project developers, buyers and capital providers," Ana Haurie, the company's chief executive, said.

"It is a privilege to work with Etihad, which has shown real commitment to its sustainability goals through what is a challenging period for the airline industry,” she added.

Etihad's offsetting programme is being verified and certified by carbon offset assurance body Verra.

The bio:

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Declan: It was The Commitments but now it’s Bohemian Rhapsody.

Heidi: The Long Kiss Goodnight.

Favourite holiday destination:

Declan: Las Vegas but I also love getting home to Ireland and seeing everyone back home.

Heidi: Australia but my dream destination would be to go to Cuba.

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Heidi: Live, love, laugh and have no regrets.

 

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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