Landmark UAE climate law aims to curb emissions and boost net-zero ambitions

A new UAE climate law that requires companies to keep emission levels in check or face fines has been hailed as a "pivotal shift" for the country.

Federal Decree-Law No 11 of 2024 on Reduction of the Effects of Climate Change, which came into effect on Friday, mandates emissions reporting and climate adaptation measures across all sectors, from heavy industry to health care and energy, as well as small private enterprises in free zones. For the first time, climate action is not simply encouraged in the UAE, it is legally required.

Under the legislation, companies must submit regular emissions reports to the Ministry of Climate Change and Environment, develop decarbonisation plans aligned with the UAE's Net Zero 2050 strategy and establish greenhouse gas monitoring systems that adhere to international standards. Those failing to comply could face fines of up to Dh2 million ($544,588).

"This law marks a pivotal shift in the regulatory landscape," said Antonios Vouloudis, senior director of sustainability and stewardship at NYU Abu Dhabi. "Climate action is no longer a voluntary effort. It is a legal requirement and a critical element of long-term business resilience and competitiveness."

Industry experts believe the initial enforcement of the legislation may focus on large emitters. The most affected sectors include energy, manufacturing, construction, transport and logistics – all with carbon-intensive supply chains and infrastructure.

But the legislation "applies to everyone, even free zones", said Amer Arafat of sustainability consultancy Element Six. "It is the most significant change to corporate accountability since financial audits were made mandatory," he added.

Critical green strategy

The logic of the law is clear. With 85 per cent of the UAE's population and infrastructure located in coastal zones vulnerable to rising sea levels, and models projecting a 2°C rise in average global temperatures by 2040, the UAE is focused on sustainability.

"This law reflects the UAE's leadership in climate governance," Mr Vouloudis said. "It sends a clear signal that climate responsibility must be built into national development and private enterprise alike."

Offsetting as an option

The law establishes a National Carbon Credit Registry to enable carbon trading and shadow carbon pricing, promoting market-driven emissions reductions.

"While offsetting can help entities achieve compliance, its effectiveness depends on the integrity of offset projects and proper regulation to avoid greenwashing," Dr Aseel Takshe, acting dean at the Canadian University Dubai, told The National. "However, offsetting is generally considered a supplementary measure – direct emissions reductions and clean technology adoption remain the primary focus for achieving net zero."

Dr Takshe believes the introduction of the law opens new avenues for collaboration between academia, government and industry, particularly in efforts to protecting public health and infrastructure.

"The law offers opportunities to contribute research, innovation and expertise in areas such as climate risk assessment, health impact modelling and sustainable urban planning," she added.

Climate shifts emphasise urgency

Recent scientific research underscores the need to act. Dr Diana Francis, a climate scientist at Khalifa University, recently co-wrote a study attributing last year's historic flooding in the UAE to climate change fuelled by human activity. "Extreme events like this will become more common," Dr Francis said.

As well as last year's heavy downpour, April 2025 was the hottest on record in the UAE. "We're witnessing the fingerprints of climate change in our daily weather patterns, not just over decades, but over months," she added.

Challenges for business

Businesses, meanwhile, face a steep learning curve. Many are still unfamiliar with frameworks for measuring emissions and few have in-house sustainability teams. "Think of it like your financial reporting," Mr Arafat said. "You'll need audits, disclosures and probably external consultants until capacity builds internally."

Mr Vouloudis said it would be important for business to receive support. "The ministry's commitment to sector-specific workshops and guidance materials is promising, but it must scale quickly," he said. "Capacity-building, especially for small businesses, is vital."

For consumers, the legislation could lead to greater transparency about the carbon footprints of goods and services. Companies must now publicly disclose emissions and their progress towards reduction targets.

"It will minimise greenwashing," Mr Vouloudis said. "Only verified, compliant claims will stand. That empowers citizens to make informed, climate-conscious choices."

Progressive law praised

Greenpeace Mena lauded the move as "bold and progressive" and looked for further steps, including clear emissions caps and the prioritisation of clean energy over carbon capture.

Mr Vouloudis echoed that sentiment. "This is the scaffolding. The next step is to operationalise it through clarity, enforcement and incentives, especially for those willing to go beyond compliance."