UAE Climate Change Law – How does it Impact the UAE Businesses

The United Arab Emirates’ Federal Decree-Law No. (11) of 2024 on the Reduction of Climate Change Effects marks a significant shift from policy ambition to enforceable legal obligation, establishing a binding, nationwide regime for greenhouse gas emissions management. With the transitional deadline of 30 May 2026 fast approaching, businesses must treat compliance as a priority. The key aspects of the law are summarized below:

Aspects Details
Key Compliance Deadline 30 May 2026
Who Is Impacted All public and private entities operating in the UAE, including mainland and free zone companies whose operations or activities result in the release of GHG emissions
Purpose of the Law Establishes a national framework for monitoring, managing, and reducing greenhouse gas (GHG) emissions across sectors as part of the UAE’s climate strategy
Why This Matters
  • Organizations must establish systems for measuring and managing GHG emissions, implement climate governance structures, and prepare for regulatory reporting.
  • Companies that delay implementation may face compliance challenges once enforcement begins
Industries Likely to be Impacted Energy, manufacturing, construction, logistics, and other carbon-intensive sectors
Compliance Requirements
  • Measurement and monitoring of greenhouse gas emissions
  • Development of an organizational GHG emissions inventory
  • Implementation of emissions reduction and climate mitigation measures
  • Maintenance of emissions records and internal compliance processes
  • Preparation to submit climate-related information to authorities when required
Penalties for Non-Compliance Financial penalties ranging from AED 50,000 to AED 2,000,000, depending on the severity of violations

How We Can Assist
Considering the approaching compliance timeline of 30th May 2026, steadfast preparation will enable organizations to manage regulatory risks and timely align with the UAE’s climate transition strategy. Our advisory team can support organizations in preparing for compliance with UAE climate regulations through:

    • Conducting a Climate Law scope assessment
    • Establishing organizational boundaries for emissions accounting
    • Developing a baseline GHG inventory supported by a robust GHG Accounting Framework
    • Implementing internal climate governance and oversight mechanisms
    • Developing emissions reduction and climate transition strategies in line with sector-specific standards

 

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