Mandatory Emissions Reporting in UAE: a Guide to the New Climate Law

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The UAE's new Climate Law, Federal Law No. 8 of 2024, has introduced a groundbreaking new requirement for businesses in the country: mandatory emissions reporting. This is a major step forward in the UAE's efforts to combat climate change and to transition to a low-carbon economy. This guide explains what the new mandatory emissions reporting requirements mean for your business.

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The Challenge: A Lack of Transparency on Corporate Emissions

For too long, there has been a lack of transparency on the greenhouse gas (GHG) emissions of businesses in the UAE. This has made it difficult to track progress towards the country's climate targets and to identify the sectors and companies that need to do more to reduce their emissions. The new mandatory emissions reporting requirements are designed to address this issue by creating a clear and consistent framework for corporate climate disclosure.

The Solution: A National Climate Reporting Framework

The new law establishes a national climate reporting framework that will require all businesses in the UAE to report their GHG emissions on an annual basis. This will provide a comprehensive and consistent dataset on corporate emissions that will be used to inform government policy and to track progress towards the UAE's climate targets.

Key Aspects of the New Mandatory Emissions Reporting Requirements

1. A Phased Approach to Implementation

The new mandatory emissions reporting requirements will be implemented in a phased approach. The first phase will apply to large companies and to companies in high-emitting sectors, such as oil and gas, manufacturing, and transportation. The requirements will then be gradually extended to smaller companies and to other sectors of the economy.

2. A Standardized Reporting Methodology

The new law will require businesses to use a standardized methodology for calculating and reporting their GHG emissions. This will ensure that the data is consistent and comparable across different companies and sectors. The specific reporting methodology will be set out in a subsequent Cabinet decision, but it is expected to be based on international best practice, such as the GHG Protocol.

3. Public Disclosure of Emissions Data

The emissions data that is reported by businesses will be made publicly available. This will provide greater transparency on corporate emissions and will allow investors, consumers, and other stakeholders to make more informed decisions. It will also create a powerful incentive for businesses to reduce their emissions, as they will be held to account for their climate performance.

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Conclusion: A More Sustainable and Competitive Economy

The new mandatory emissions reporting requirements are a major step forward in the UAE's efforts to build a more sustainable and competitive economy. They will provide greater transparency on corporate emissions, will support to drive down emissions, and will support the UAE's transition to a low-carbon future. All businesses in the UAE should start preparing now for the new reporting requirements to ensure that they are ready to comply when the law comes into effect.

At Nour Attorneys Law Firm, our team of environmental law specialists can provide expert advice on all aspects of the new UAE Climate Law. We can support you to understand your obligations under the new mandatory emissions reporting requirements and can support you with developing a robust and effective climate reporting program. Contact us to navigate the new era of climate disclosure in the UAE.

Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal advice. Readers should seek professional legal advice tailored to their specific circumstances before making any decisions or taking any action based on the content of this article.

Nour Attorneys Team

Additional Resources

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