Updated June 2025

1. What are the key climate laws introduced in the UAE in 2024?

  • Federal Decree-Law No. 11 of 2024:Mandates greenhouse gas (GHG) emissions reporting, reduction targets, and climate adaptation plans for all businesses. Effective since 30 May 2025—compliance is now mandatory.
  • Cabinet Resolution No. 67 of 2024:Establishes the National Register for Carbon Credits, requiring high-emission entities to monitor, report, and verify emissions. Effective since 28 December 2024. The final compliance deadline is 28 June 2025—just weeks away.

2. Which companies must comply with these regulations?

Federal Decree-Law No. 11/2024:

Applies to all public and private entities in the UAE, including those in free zones.

Cabinet Resolution No. 67/2024:

    • Mandatory: Entities emitting ≥0.5 million metric tons of CO₂ annually (Scope 1 & 2).
    • Voluntary: Smaller emitters ( < 0.5 million metric tons) may participate in carbon credit trading.

3. What are GHG Emissions?

GHG emissions, short for greenhouse gas emissions, refer to the release of gases that trap heat in the Earth’s atmosphere, contributing to global warming and climate change. The most common greenhouse gases (GHGs) include carbon dioxide (CO₂), methane (CH₄), nitrous oxide (N₂O), and fluorinated gases. These emissions are primarily generated by human activities such as burning fossil fuels (oil, gas, coal), industrial manufacturing, agriculture, and deforestation.

4. Why are GHG emissions important for UAE climate law compliance?

GHG emissions are at the center of new UAE climate regulations, which require all businesses to measure, report, and reduce their greenhouse gas emissions to meet national targets and support the UAE Net Zero 2050 strategy. Accurate GHG reporting—often measured in CO₂-equivalent—helps companies comply with UAE environmental laws, avoid penalties, and improve their sustainability and ESG (Environmental, Social, and Governance) performance.

Key facts about GHG emissions:

  • Carbon dioxide (CO₂): Largest contributor to climate change, mainly from energy use and transportation.
  • Methane (CH₄): Released from agriculture, landfills, and oil and gas operations; has a higher warming potential than CO₂.
  • Nitrous oxide (N₂O): Emitted from fertilizers and industrial processes.
  • Fluorinated gases: Synthetic, high-impact gases used in refrigeration and manufacturing.

For UAE businesses:

Understanding and managing GHG emissions is essential for compliance with the latest UAE climate laws, including mandatory GHG reporting and participation in carbon credit programs. Proactive GHG management not only ensures legal compliance but also enhances corporate reputation and access to green investment opportunities.

5. What are the reporting requirements under the new regulation?

  • GHG Emissions Tracking:
    • Annual reporting using MRV (Measurement, Reporting, Verification) systems aligned with ISO 14064/14065 standards.
    • Verified data must be submitted to the Ministry of Climate Change and Environment (MOCCAE).
  • Carbon Credit Registry:
    • High-emission entities must register in the National Register for Carbon Credits and disclose reduction strategies.

6. What penalties apply for non-compliance?

  • Federal Decree-Law No. 11/2024:
    • Fines ranging from AED 50,000 (US$13,600) to AED 2 million (US$545,000) for late or missing reports, with the specific amount determined based on the severity and frequency of the infraction.
    • Repeat offenders may face doubled penalties and potential operational restrictions.
  • Cabinet Resolution No. 67/2024:
    • Non-registration or false reporting may result in fines up to AED 1 million (US$272,000).

7. How do the new laws align with UAE’s climate goals?

  • Support the UAE Net Zero 2050 strategy and Paris Agreement commitments.
  • Promote a voluntary carbon market for offset projects and sustainable investments.
  • Complement existing initiatives like the Green Agenda 2030 and Energy Strategy 2050.

8. What steps should businesses take to prepare?

  1. Conduct a GHG Audit: Identify emissions hotspots using tools like the GHG Protocol.
  2. Implement MRV Systems: Adopt software for real-time tracking and reporting.
  3. Engage Consultants: Partner with ESG advisors to develop reduction strategies and ensure compliance.
  4. Register Early: High-emission entities must enrol in the National Carbon Register by 28 June 2025 to avoid penalties.

9. Are there incentives for compliance?

  1. Tax Breaks: Entities adopting renewable energy may qualify for corporate tax reductions (details pending).
  2. Carbon Credit Revenue: Companies can trade verified offsets on licensed platforms.
  3. Reputation Boost: Compliance enhances ESG ratings and investor appeal.

10. How does Abu Dhabi’s MRV Programme fit in?

  • Launched in January 2025, Abu Dhabi’s International MRV Programme:
    • Standardizes emissions reporting for industries such as energy and manufacturing.
    • Provides sector-specific guidelines and aligns with COP28 outcomes.
    • Administered by the Environment Agency – Abu Dhabi (EAD).

11. What sectors are most impacted?

    • High-Risk: Energy, construction, transportation, and manufacturing.
    • Emerging Focus: Finance, insurance, and healthcare due to climate-risk disclosure rules.

12. Why are finance, insurance, and healthcare included in the UAE’s new climate laws?

Under the latest UAE climate regulations—including Federal Decree-Law No. 11 of 2024 and Cabinet Resolution No. 67 of 2024—climate-risk disclosure and GHG emissions reporting are now required for a broader range of industries. This includes not only high-emission sectors, but also finance, insurance, and healthcare. The UAE recognizes that climate-related risks can impact financial stability, operational continuity, and regulatory compliance across the entire economy.

13. How do UAE new climate regulations impact the finance sector?

Financial institutions in the UAE (such as banks, investment firms, and asset managers) must now:

  • Integrate climate-risk management into their governance and risk frameworks.
  • Disclose climate-related financial risks and sustainability strategies in line with global standards like the Task Force on Climate-related Financial Disclosures (TCFD).
  • Report on the climate impact of their lending and investment portfolios to comply with UAE climate law.

Impact:

These requirements increase transparency for investors and regulators, promote sustainable finance, and help financial institutions manage risks associated with climate change.

14. What do the new climate rules mean for the insurance sector?

Insurance companies in the UAE are required to:

  • Assess and disclose climate risks in their underwriting and investment activities.
  • Report the carbon footprint of their portfolios and insurance products.
  • Set and communicate climate-risk management targets and support emission reduction.

Impact:

Insurers must update risk models, improve climate-risk transparency, and adapt their business practices to meet UAE sustainability regulations.

15. How do UAE climate laws affect the healthcare sector?

Healthcare organizations (including hospitals, clinics, and pharmaceutical companies) must:

    • Measure and report GHG emissions as part of their compliance obligations.
    • Assess and disclose climate-related risks such as supply chain vulnerabilities and the impact of extreme weather events.
    • Develop climate resilience strategies to ensure operational continuity.

Impact:

Healthcare providers must strengthen infrastructure, ensure compliance with UAE environmental regulations, and demonstrate commitment to national sustainability goals.

16. What are the benefits and risks for these sectors under UAE climate law?

      • Benefits:
        • Improved access to green finance and ESG investment opportunities.
        • Enhanced reputation and stakeholder trust.
        • Early compliance with UAE climate law positions organizations as industry leaders.
      • Risks of Non-Compliance:
        • Financial penalties (up to AED 2 million).
        • Regulatory sanctions or business restrictions.
        • Reputational damage and increased operational costs.

Summary Table: UAE Climate Law Impact by Sector

Sector Key Requirements Strategic Impact
Finance Climate-risk disclosure, GHG reporting Transparency, investor confidence, risk management
Insurance Climate-risk assessment, carbon footprint reporting Enhanced risk models, regulatory compliance
Healthcare GHG emissions reporting, resilience planning Operational continuity, infrastructure adaptation

17. Where can businesses find official guidelines?

      • MOCCAE Portal: Download templates for emissions reporting: UAE Ministry of Climate Change and Environment.
      • EAD Resources: Access MRV manuals and sector-specific checklists such as the Technical Guidance Document for Environmental Self-Monitoring and Reporting, which covers MRV procedures, reporting requirements, and compliance steps for entities in Abu Dhabi: 1454_2_TGD_SEA_v5.docx or the Integrated Emission Quantification Tool (IEQT) as part of the UAE’s National MRV-Transparency System: MOCCAE IEQT.
      • Legal Advisors: For tailored guidance and compliance support, Yungo Law offers comprehensive legal services to help businesses navigate the new climate regulations, including contract drafting, compliance audits, and ongoing advisory support.

Key Imminent Compliance Deadlines (as of June 2025):

      • Federal Decree-Law No. 11 of 2024:Already in effect since 30 May 2025. All covered entities should have GHG reporting and adaptation plans in place.

Cabinet Resolution No. 67 of 2024:

Final deadline for high-emission entities to register in the National Register for Carbon Credits and submit required data: 28 June 2025.

Non-compliance after this date may result in substantial fines and operational restrictions.

Action Required:

If your business is subject to these regulations and has not yet completed registration or reporting, immediate action is required to avoid penalties. For further details, consult the UAE Legislation Portal or contact the Ministry of Climate Change and Environment. Clotilde Iaia (clotilde@yungo.ae) can provide expert compliance guidance and legal support tailored to your organization’s needs.