UAE Climate Law 2024: Mandatory Emissions Reporting for Businesses

The UAE has taken a major step forward in its commitment to tackling climate change with the introduction of Federal Decree-Law No. 11 of 2024, the UAE’s first comprehensive climate law. This landmark legislation, which takes effect from May 2025, introduces a mandatory requirement for businesses to measure, report, and reduce their greenhouse gas emissions. This guide explains what the new law means for your business.

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The Challenge: A National Commitment to a Sustainable Future

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As a signatory to the Paris Agreement, the UAE is committed to playing its part in the global effort to combat climate change. The new climate law is a key part of the UAE’s strategy to achieve its climate goals and to transition to a more sustainable, low-carbon economy. The law will require a significant shift in the way that many businesses operate, and it will create both challenges and opportunities.

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The legal framework: A Legal Framework for Climate Action

The new climate law provides a legal framework for the UAE’s climate action. It sets out a clear and ambitious roadmap for reducing the country’s greenhouse gas emissions and for building a more climate-resilient society.

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Key Provisions of the 2024 Climate Law

1. Mandatory Emissions Measurement and Reporting

The most significant provision of the new law for businesses is the introduction of a mandatory requirement to measure and report greenhouse gas emissions. This will apply to all businesses in the UAE, although the specific requirements may vary depending on the size and sector of the business. Businesses will need to establish a robust system for collecting and reporting their emissions data.

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2. Emissions Reduction Targets

The new law also requires businesses to set and achieve emissions reduction targets. The specific targets will be determined by the government, and they are likely to be aligned with the UAE’s national climate goals. Businesses will need to develop and implement a clear strategy for reducing their emissions, which may include investing in new technologies, improving energy efficiency, and switching to renewable energy sources.

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3. A National Climate Change Council

The new law establishes a National Climate Change Council, which will be responsible for overseeing the implementation of the law and for coordinating the UAE’s climate action. The Council will be made up of representatives from government, business, and civil society, and it will play a key role in shaping the UAE’s climate policy.

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4. A Framework for Climate Adaptation

In addition to its focus on emissions reduction, the new law also provides a framework for climate adaptation. This includes measures to protect the UAE’s infrastructure, ecosystems, and communities from the impacts of climate change, such as rising sea levels and more extreme weather events.

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Conclusion: A New Era of Corporate Sustainability

The new UAE climate law marks a new era of corporate sustainability in the UAE. It will require all businesses to take a more proactive and strategic approach to managing their environmental impact. While the new law will create challenges for some businesses, it will also create significant opportunities for those that are able to innovate and adapt. By embracing the transition to a low-carbon economy, businesses can not only reduce their environmental impact, but they can also enhance their brand reputation, attract new customers, and create long-term value for their shareholders.

At Nour Attorneys Law Firm, we are committed to supporting our clients to navigate the transition to a more sustainable future. We can provide expert legal advice on all aspects of the new UAE climate law, and we can partner with you to develop a robust and effective ESG (Environmental, Social, and Governance) strategy for your business. Contact us to build a more sustainable and successful business.

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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