UAE Introduces Landmark Climate Law to Combat Emissions and Drive Net-Zero Goals
Federal Decree-Law No 11 of 2024 mandates emissions reporting and requires private enterprises to adopt climate adaptation measures.
The United Arab Emirates has enacted a transformative climate law aimed at regulating greenhouse gas emissions across all sectors of the economy.
Federal Decree-Law No 11 of 2024 on the Reduction of the Effects of Climate Change came into effect recently, marking a significant shift in the country's approach to climate governance.
Under this new legislation, companies operating in various sectors—including heavy industry, health care, energy, and small private enterprises in free zones—are required to monitor and report their emissions.
This marks the first time climate action is mandated by law in the UAE.
Companies must regularly submit emissions reports to the Ministry of Climate Change and Environment, develop decarbonization plans that align with the UAE's Net Zero 2050 strategy, and establish greenhouse gas monitoring systems that meet international standards.
Non-compliance could result in fines of up to Dh2 million (approximately $544,588).
Industry experts anticipate that the initial enforcement of the law will target large emitters, particularly in carbon-intensive sectors such as energy, manufacturing, construction, and logistics.
Amer Arafat, a consultant in sustainability, pointed out that the law applies universally, even to free zones, representing a significant landmark in corporate accountability comparable to the introduction of mandatory financial audits.
The rationale behind the legislation is rooted in the UAE's vulnerability to climate change, with a substantial portion of its population and infrastructure located in coastal areas at risk from rising sea levels.
Projections indicate a potential 2°C increase in average global temperatures by 2040, prompting a renewed focus on sustainability efforts.
The law also establishes a National Carbon Credit Registry to facilitate carbon trading and implement shadow carbon pricing, promoting emissions reduction through market mechanisms.
Dr. Aseel Takshe, acting dean at the Canadian University Dubai, emphasized the importance of reputable offset projects in carbon compliance, noting that while offsetting can aid compliance, genuine emissions reductions and clean technology adoption should remain the primary goals for achieving net-zero targets.
The introduction of this law is expected to foster collaboration among government, academia, and industry in addressing climate risks and protecting public health.
Dr. Takshe highlighted opportunities for research and innovation in climate risk assessment and sustainable urban planning.
Recent scientific studies underscore the urgency for decisive action, particularly in light of extreme weather events linked to climate change.
Dr. Diana Francis, a climate scientist at Khalifa University, cited historical flooding in the UAE as a direct consequence of climate change attributable to human activity.
Recent weather patterns, including record temperatures, have further underscored the need for climate action in the region.
As businesses adapt to new compliance frameworks, many face challenges due to limited experience in emissions measurement and sustainability practices.
Mr. Arafat likened the transition to financial reporting, suggesting that companies will require initial assistance with audits and consulting services as they build internal capacity.
The law's transparency provisions are designed to enhance consumer awareness of the carbon footprints associated with goods and services.
Firms are now obliged to publicly disclose their emissions and progress towards reduction targets, which aims to mitigate the prevalence of greenwashing by ensuring only verified claims are communicated.
The legislation has been welcomed by environmental groups as a noteworthy step forward.
Greenpeace Mena termed the law a "bold and progressive" move, advocating for future measures, including clearly defined emissions caps and a stronger emphasis on clean energy alternatives over carbon capture technologies.
Industry experts acknowledged that while the newly enacted law lays crucial groundwork, its effective implementation will hinge on detailed guidelines, enforcement, and incentives for businesses willing to exceed mere compliance.
Federal Decree-Law No 11 of 2024 on the Reduction of the Effects of Climate Change came into effect recently, marking a significant shift in the country's approach to climate governance.
Under this new legislation, companies operating in various sectors—including heavy industry, health care, energy, and small private enterprises in free zones—are required to monitor and report their emissions.
This marks the first time climate action is mandated by law in the UAE.
Companies must regularly submit emissions reports to the Ministry of Climate Change and Environment, develop decarbonization plans that align with the UAE's Net Zero 2050 strategy, and establish greenhouse gas monitoring systems that meet international standards.
Non-compliance could result in fines of up to Dh2 million (approximately $544,588).
Industry experts anticipate that the initial enforcement of the law will target large emitters, particularly in carbon-intensive sectors such as energy, manufacturing, construction, and logistics.
Amer Arafat, a consultant in sustainability, pointed out that the law applies universally, even to free zones, representing a significant landmark in corporate accountability comparable to the introduction of mandatory financial audits.
The rationale behind the legislation is rooted in the UAE's vulnerability to climate change, with a substantial portion of its population and infrastructure located in coastal areas at risk from rising sea levels.
Projections indicate a potential 2°C increase in average global temperatures by 2040, prompting a renewed focus on sustainability efforts.
The law also establishes a National Carbon Credit Registry to facilitate carbon trading and implement shadow carbon pricing, promoting emissions reduction through market mechanisms.
Dr. Aseel Takshe, acting dean at the Canadian University Dubai, emphasized the importance of reputable offset projects in carbon compliance, noting that while offsetting can aid compliance, genuine emissions reductions and clean technology adoption should remain the primary goals for achieving net-zero targets.
The introduction of this law is expected to foster collaboration among government, academia, and industry in addressing climate risks and protecting public health.
Dr. Takshe highlighted opportunities for research and innovation in climate risk assessment and sustainable urban planning.
Recent scientific studies underscore the urgency for decisive action, particularly in light of extreme weather events linked to climate change.
Dr. Diana Francis, a climate scientist at Khalifa University, cited historical flooding in the UAE as a direct consequence of climate change attributable to human activity.
Recent weather patterns, including record temperatures, have further underscored the need for climate action in the region.
As businesses adapt to new compliance frameworks, many face challenges due to limited experience in emissions measurement and sustainability practices.
Mr. Arafat likened the transition to financial reporting, suggesting that companies will require initial assistance with audits and consulting services as they build internal capacity.
The law's transparency provisions are designed to enhance consumer awareness of the carbon footprints associated with goods and services.
Firms are now obliged to publicly disclose their emissions and progress towards reduction targets, which aims to mitigate the prevalence of greenwashing by ensuring only verified claims are communicated.
The legislation has been welcomed by environmental groups as a noteworthy step forward.
Greenpeace Mena termed the law a "bold and progressive" move, advocating for future measures, including clearly defined emissions caps and a stronger emphasis on clean energy alternatives over carbon capture technologies.
Industry experts acknowledged that while the newly enacted law lays crucial groundwork, its effective implementation will hinge on detailed guidelines, enforcement, and incentives for businesses willing to exceed mere compliance.
Translation:
Translated by AI