The UAE is taking major steps to address climate change. Federal Decree-Law No. 11 of 2024, often referred to as the UAE Climate Law 2025, establishes rules and targets for businesses and other organizations to reduce their environmental impact and support the UAE Net Zero 2050 strategy.
"The starting point for compliance is knowing where your emissions come from, how they are measured, and how the resulting data can be reported consistently."
Introduction: The UAE's Big Green Leap
Climate change is creating pressure for governments and businesses to reduce emissions while preparing for changing environmental conditions. The UAE has been active in global climate discussions, including hosting COP28.
Federal Decree-Law No. 11 of 2024 on the Reduction of Climate Change Effects makes climate action a legal requirement for businesses and government bodies and supports the country's objective of reaching Net Zero emissions by 2050.
Overview of UAE Law No. 11 of 2024
The law came into effect on May 30, 2025, according to the source material. It provides a framework for reducing greenhouse gas emissions, strengthening climate adaptation, encouraging technology and innovation, promoting information sharing, and aligning national and local efforts with broader climate action.
The law broadly applies to government bodies, private companies, and businesses operating in the UAE, including businesses in free zones.
Sectors Covered Under the Law
The source material describes the law as broadly applicable across sectors, with particular attention to sectors that are significant emitters or especially exposed to climate change.
Energy
Reduce emissions through cleaner energy sources and greater efficiency.
Infrastructure
Improve building practices, materials, and the environmental performance of construction and infrastructure.
Health
Address energy consumption and waste generated by hospitals and healthcare facilities.
Insurance
Respond to climate-related risks and potentially develop green insurance products.
Environment
Develop and implement solutions to environmental challenges.
The UAE Cabinet, working with the Ministry of Climate Change and Environment (MOCCAE) and other relevant authorities, will set annual carbon reduction targets for sectors covered by the framework.
Compliance Framework and Enforcement
A central part of the framework is Measure, Report, and Verify (MRV).
The Compliance Cycle
Establish an emissions inventory covering relevant activities such as electricity use and vehicle fuel consumption.
Submit emissions information to MOCCAE or other relevant government bodies according to applicable reporting requirements.
Prepare for third-party review where verification is required to establish the accuracy and credibility of reported information.
The source states that businesses need to retain emissions records for at least five years.
Reduction strategies described in the source include:
Businesses also need to consider climate adaptation. For example, a business exposed to coastal risks may need to account for rising sea levels in its planning.
The law also refers to a National Carbon Credit Registry and government incentives for early action and sustainable technologies. The source states that non-compliance can result in fines ranging from AED 50,000 to AED 2 million, with repeated violations potentially leading to higher penalties.
Business Preparation Strategies: Getting Ready for Compliance
Businesses can begin preparing by establishing a clear view of their emissions and building the internal systems required for ongoing management.
A Practical Preparation Path
Build an emissions inventory covering direct emissions, purchased electricity, and, where relevant, supply-chain emissions.
Apply recognized approaches such as the GHG Protocol to improve consistency and accuracy.
Set specific, measurable, achievable, relevant, and time-bound objectives for reducing emissions.
Review lighting, machinery, air conditioning, and other major energy uses.
Assess options such as solar power or renewable electricity procurement.
Identify opportunities to reduce waste and the emissions associated with producing replacement materials.
Work with suppliers that are also committed to reducing emissions.
Use reliable processes, software, or dedicated staff to collect and maintain emissions data.
Assess risks such as extreme heat, water scarcity, and severe storms and plan for resilience.
Ensure employees understand relevant procedures for energy efficiency, waste management, and data collection.
Follow further guidance from MOCCAE and engage appropriate legal or sustainability experts where necessary.
Sector Case Studies and Early Movers
The source notes that detailed public case studies directly tied to Federal Decree-Law No. 11 of 2024 are still emerging. It identifies several broader UAE examples that illustrate the direction of travel.
These examples illustrate practical approaches businesses can consider while preparing for compliance.
Conclusion: A Greener Future for the UAE
Federal Decree-Law No. 11 of 2024 represents a significant shift toward legally structured climate action in the UAE. For businesses, preparation means understanding the applicable requirements, establishing reliable emissions data, implementing reduction measures, and building resilience against climate-related risks.
Proactive preparation can help organizations meet UAE emissions reporting requirements, work toward carbon reduction targets, and strengthen operational resilience.
