The UAE has taken a significant step toward climate governance with the introduction of Federal Decree-Law No. 11 of 2024 on Climate Change. Enacted in August 2024 and effective from 30 May 2025, the law establishes a national framework for emissions reduction, climate adaptation, and sustainable development. It reinforces the UAE’s commitment to achieving net zero emissions by 2050 and places legally binding obligations on both public and private entities.
For many organisations, navigating these requirements is easier with the expertise of a trusted ESG consultant UAE who understands both the regulatory details and the practical pathways to compliance.
The law is part of a broader effort to align national policy with international climate agreements, including the Paris Agreement. For businesses operating in the UAE, this marks a transition from voluntary sustainability action to structured, regulated climate accountability.
What Does the UAE Climate Law Require?
The law applies to all federal, local, and free zone entities, making it sector-wide and jurisdictionally comprehensive. Key requirements include:
- Greenhouse Gas (GHG) Emissions Inventories
Entities must prepare, measure, and submit GHG inventories to the Ministry of Climate Change and Environment (MOCCAE). Scope 1 and Scope 2 must be reported. Scope 3 is not yet required but should be considered if deemed material to the organisation’s emissions profile. - Climate Mitigation Plans
Organisations are required to develop and implement mitigation plans aligned with the UAE’s national strategy for net zero by 2050. This includes integrating emissions reduction into operational planning and investment decisions. - Adaptation and Risk Management
Entities must identify climate-related risks and develop adaptation plans. Adaptation plans must address identified climate-related risks relevant to operations, such as water stress, heat, or extreme weather. - National Carbon Registry Compliance
Facilities above the threshold must register with the National Register for Carbon Credits (NRCC), established under Cabinet Resolution No. 67 of 2024. Verified emissions data must be submitted regularly and is subject to audit and oversight. - Penalties for Non-Compliance
Fines range from AED 50,000 to AED 2,000,000, and are doubled if a violation is repeated within two years.
Implications for Businesses
While the law impacts all sectors, its implications vary by industry. Whether you’re in real estate, infrastructure, manufacturing, logistics, or services, you will likely need to:
- Quantify and disclose your operational emissions
- Develop climate action strategies and integrate them into business plans
- Appoint internal teams or consultants to manage climate compliance
- Demonstrate readiness to respond to climate risks
- Engage with government systems such as the National Register for Carbon Credits (NRCC)
Working with a qualified sustainability consultant UAE can help streamline this process — ensuring your strategies meet both UAE regulatory requirements and international ESG expectations.
Organisations that act early will be better positioned to benefit from future green finance incentives, carbon markets, and evolving ESG disclosure expectations across the region.
Common Compliance Challenges
Data and Reporting Systems
Many companies lack robust systems for tracking and verifying GHG emissions. Aligning with internationally recognised standards such as the GHG Protocol or ISO 14064 may require investment in tools, training, or technical support.
1. Capacity and Expertise
Small and medium enterprises, in particular, may not have dedicated sustainability or ESG teams. This creates barriers to developing mitigation or adaptation plans that meet MOCCAE requirements.
2. Capital Expenditure
Switching to energy-efficient equipment, low-carbon materials, or clean energy sources often comes with upfront costs, though long-term savings are achievable.
3. Supply Chain Alignment
Businesses may need to work more closely with suppliers and subcontractors to reduce embedded carbon and meet reporting obligations.
How Green Way Supports Climate Law Compliance
At Green Way — recognised as the best environment consultancy in Dubai — we work across sectors to help clients navigate the UAE Climate Law with confidence and clarity. Our advisory support includes:
- GHG inventory development and verification support
- Climate risk and adaptation planning
- Net zero strategy and roadmap development
- Training and internal capacity-building
- Integration with existing ESG frameworks and reporting systems
- Technical advice on emissions reduction and low-carbon procurement
- Support with registration and compliance under the National Register for Carbon Credits (NRCC)
If your organisation requires deeper risk analysis, our climate risk consultant UAE team can help assess vulnerabilities and develop robust adaptation strategies tailored to your sector.
Moving From Obligation to Opportunity
The UAE Climate Law reflects a shift toward mandatory environmental accountability, but it also opens the door to innovation, resilience, and market differentiation. Organisations that invest early in compliance and climate resilience will gain a competitive advantage and strengthen their long-term sustainability credentials.
Partner with Green Way — the best environment consultancy in Dubai — to ensure your business is climate-ready, compliant, and positioned to lead in a low-carbon future. Our net zero advisory UAE services help turn obligations into strategic opportunities for growth, resilience, and leadership in sustainability.
