The UAE government issued Federal Decree-Law No. 11 of 2024 on the Reduction of Climate Change Effects on 28 August 2024. It entered into force on 30 May 2025, and businesses were given until 30 May 2026 to put measurement and reporting systems in place. That transition period is now over.
The law is administered by the Ministry of Climate Change and Environment (MOCCAE), alongside other competent authorities and sector regulators. It supports the country's Net Zero by 2050 target and its updated Nationally Determined Contribution, which commits to a 40% emissions cut by 2030.
Who it covers
All public and private entities operating in the UAE, on the mainland and in free zones. There is no revenue threshold of the kind used for VAT or corporate tax; applicability depends on the nature of the business and its emissions. The Cabinet sets implementing regulations, sector thresholds and technical specifications.
What it requires
- Measure — Track greenhouse gas emissions: Scope 1, Scope 2, and Scope 3 where the Cabinet specifies.
- Report — Submit reports to MOCCAE and keep records for five years.
- Reduce — Adopt mitigation measures such as energy efficiency, clean energy, carbon sinks and carbon capture, in line with sector targets.
- Adapt — Develop adaptation plans for sector-specific climate risks.
Penalties
Administrative fines range from AED 50,000 to AED 2,000,000 per violation. Repeating the same violation within two years doubles the penalty, up to AED 4 million. Authorities can also require corrective action within a set timeframe.
At a glance
- Issued: 28 Aug 2024
- In force: 30 May 2025
- Full compliance: 30 May 2026
- Regulator: MOCCAE
- Scope: Mainland + free zones
- Fines: AED 50k–2M
What to watch next
Sector-specific annual reduction targets, which the law says will be reviewed and updated regularly, and the incentives it allows for emissions trading and carbon offsetting.
Sources
- BDO UAE · “The UAE's Federal Decree-Law No. (11) of 2024”
- Meydan Free Zone · “ESG Reporting UAE: Federal Decree Law No. 11 of 2024 Guide”
- New River Consulting · “Understanding UAE Federal Decree-Law No. 11 of 2024”
- Endurisk · “What Every Business Needs to Know Before the Compliance Deadline”