In the United Arab Emirates, climate regulation is governed by Federal Decree-Law No. (11) of 2024 on the Reduction of Climate Change Effects (‘the Law’), which came into force on 30 May 2025. The Law establishes a binding federal framework for greenhouse gas emissions management and reduction as part of the UAE’s Net Zero 2050 strategy.
The Law provides a transitional period for concerned entities to regularise their positions and implement the required measurement, monitoring and reporting mechanisms. Accordingly, entities falling within its scope are required to align their operations with the Law and its implementing regulations no later than 30 May 2026.
Applicability
The Law applies to public and private legal persons, as well as individual enterprises, whose operations or activities result in the release of greenhouse gases into the atmosphere (“sources”) including free zones and is subject to its provisions and implementing regulations.
Obligations
The Law imposes binding obligations on concerned entities in coordination with sources determined by the Ministry and Competent Authority, including:
- Measuring and monitoring greenhouse gas emissions in accordance with approved standards;
- Establishing and maintaining records within a Monitoring, Reporting and Verification framework;
- Submitting emissions data and related reports to the competent authority;
- Implementing emission reduction measures aligned with national and sectoral targets;
- Complying with mitigation and adaptation measures issued by authorities; and
- Facilitating inspections, audits and regulatory verification procedures.
Incentive
The Ministry and the competent authority shall incentivize sources to adopt and develop new technologies and methods, and take advanced measures to reduce their emissions emitted, through the application of incentive policies and mechanisms.
Penalty
Fines for violations by concerned entities range from AED 50,000 to AED 2,000,000. Repeated violations may result in enhanced penalties and additional administrative measures, including corrective directives or suspension of relevant approvals.