Federal Decree-Law No. (11) of 2024 On the Reduction of Climate Change Effects the new decree law aims at reducing carbon emissions to be contribute to the global climate change efforts. It also promotes innovation research, and modern technology in climate action and helps to align national strategies with green economy, circular economy, and sustainable development goals.
Scope of application
The act applies to all emission sources within the UAE, including free zone entities. It covers both private and public sector entities. It is a mandatory legal obligation and not a voluntary sustainable development initiative.
Climate Change Mitigation Obligations
Entities must actively reduce emissions using one or more of the following:
- Improving energy efficiency
- Adopting clean or renewable energy
- Protecting and enhancing natural carbon sinks
- Using carbon capture, use, and storage (CCUS)
- Replacing fluorocarbons with safer alternatives
- Implementing carbon offsetting
- Adopting integrated waste management systems
- Using other technologies approved by authorities
They are also required to develop and submit GHG emissions reduction plans and disclose the present plan for emission reduction measures. It should align with the sector specific targets that is going to be issued by the UAE Cabinet.
Measurement, Reporting, and Verification
The entities that come under the scope of this act must comply with a MRV framework:
- Measurement and Reporting of Emissions – The emissions have to be regularly measured, and an emission inventory has to be maintained. Periodic records are to be submitted with approved standards.
From 2027 Report emissions across
- Scope 1 – direct emissions (e.g., company vehicles, onsite fuel use)
- Scope 2 – indirect emissions (e.g., purchased electricity and cooling)
- Scope 3 – value chain emissions (e.g., logistics, suppliers),
2. Disclosure of Climate Data – Entities are supposed to provide their emission levels, current and planned emission reduction measures, expected outcomes of such measures.
3. Record Keeping – A emission data supporting records for at least five (5) years must be kept along with providing access to authorities for inspection and verification.
4. MRV System Registration – The entities are required to register on the national MRV platform. The reporting is conducted on an annual basis.
5. Digital Monitoring System – A centralised digital monitoring system has been implemented for emissions tracking, data submission, integration with local authority systems.
6. Verification and Oversight – Authorities will verify accuracy of submitted data.
The businesses are also required to assess the physical and transition risks and develop risk mitigation strategies.
Penalties for Non-Compliance
The Law establishes a strict enforcement framework:
- Administrative fines ranging from AED 50,000 to AED 2,000,000
- Repeat violations may result in fines to double.
- Additional measures may could also be imposed like suspension of activities, revocation of trade licences and operational restrictions.
The Federal Decree-Law No. (11) of 2024 marks a decisive shift in the UAE from voluntary sustainability efforts to mandatory climate compliance. Early preparation, robust internal systems, and alignment with regulatory requirements will not only ensure compliance helps in the UAE’s transition toward a sustainable economy.
At Ayesha Al Dhaheri Advocates & Legal Consultants, we assist businesses in navigating the UAE’s evolving climate regulatory framework with clarity and confidence.