The UAE has introduced a groundbreaking -Federal Decree-Law No. (11) of 2024, aimed at reducing the effects of climate change. Effective May 30, 2025, this law sets out requirements for emission reduction, ecosystem protection, and the promotion of sustainable innovation, positioning the UAE as a leader in global climate action. With an emphasis on both immediate action and long-term resilience, the law provides a roadmap for businesses to align with the UAE national and international climate goals.

Key objectives of the law

1. Emission management
The law focuses on controlling and reducing greenhouse gas emissions across the nation, contributing to global climate mitigation efforts and enhancing the UAE's sustainability efforts.

2. Ecosystem resilience
It aims to protect ecosystems and communities by improving their ability to withstand climate change, safeguarding both natural and economic resources.

3. Innovation and research
The law encourages the development of new technologies and solutions to tackle climate change, with a strong focus on the private sector’s involvement in sustainable practices.

4. Global cooperation and transparency
Promoting data sharing and collaboration on climate change solutions, both within the country and internationally, is essential to achieving global climate goals.

5. Strategic Alignment
The law aligns national and local policies with global standards, supporting the UAE’s economic diversification and competitiveness in sustainability.

Key provisions

• Mitigation measures

Companies must adopt practices like improving energy efficiency, utilising clean energy, protecting carbon sinks, and applying carbon capture technologies.

•  National pathway to climate neutrality

The UAE will set annual emission reduction targets for all sectors, reviewing and updating them regularly in line with international best practices.

•  Measurement, reporting, and verification (MRV)

Businesses will be required to track, report, and verify their emissions, maintaining a five-year record for transparency and accountability.

• Adaptation plans

Sectors will need to develop tailored climate adaptation plans to address specific climate risks and ensure resilient operations.

•  Incentives for innovation

The government will incentivise the adoption of new sustainable technologies, such as carbon offsetting and emissions trading.

•  Penalties for non-compliance

Fines ranging from AED 50,000 to AED 2 million will be imposed for non-compliance, with repeated violations leading to higher penalties. This emphasises the need for strict adherence to the law.

Implementation and applicability

The law applies to public and private entities whose operations or activities release greenhouse gases into the atmosphere, including those in free zones.

The Ministry of Climate Change and Environment shall issue implementation resolutions to assist organizations in implementing the Law.

How companies can prepare

1. Assess emissions
Begin by conducting a comprehensive emissions inventory to understand your carbon footprint and identify areas for improvement.

2. Develop reduction strategies
The next step is implement energy-efficient practices and adopt renewable energy solutions to meet emission reduction targets.

3. Implement reporting systems
Set up systems for accurate emissions tracking, reporting, and maintaining records for compliance.

4. Create adaptation plans
Identify climate risks specific to your operations and develop strategies to mitigate them.

5. Employee education and awareness
Educate staff on the new law and sustainable practices to ensure alignment across the company.

6. Stay updated
Keep up with the soon to be released executive resolutions from the Ministry of Climate Change and Environment.

Looking forward

The Federal Decree-Law No. (11) of 2024 represents a critical step in the UAE’s journey toward Net Zero by 2050. By proactively aligning with the law’s provisions, businesses can not only comply with regulatory requirements but also enhance their competitiveness in an increasingly sustainability conscious global market.

At BDO we provide the entire suite of sustainability services including climate change, reporting, tracking and mitigation strategies. Please get in touch with our experts if you need any help relating to our ESG services.

For more details on the Law, read the full text here.