The UAE has taken a bold step toward environmental accountability with a new climate law that officially came into effect on May 30, 2025. Marking a first in the MENA region, the legislation outlines a nationwide framework to reduce greenhouse gas emissions while supporting sustainable economic growth.
Federal Decree-Law No. (11) of 2024 on the Reduction of Climate Change Effects targets key sectors like energy, infrastructure, and waste management, setting emissions reduction goals. It also promotes advanced solutions such as carbon capture, utilization, and storage (CCUS) and the expansion of natural carbon sinks, placing the UAE at the forefront of climate innovation in the region.
One of the most important parts of the law is the creation of a Measurement, Reporting, and Verification (MRV) system. This means all emissions will need to be accurately reported and verified by third parties, with everything tracked through a national electronic platform.
And yes, there are penalties for non-compliance. Businesses that violate the law could face fines ranging from AED 500,000 to AED 2 million. The law also introduces a National Carbon Credit Registry that will link to global carbon markets — giving companies that take early action a chance to benefit.
The legislation also requires climate adaptation plans tailored to each sector and mandates sharing data on climate-related damages, helping officials make smarter decisions based on real-world impacts.
To keep the momentum going, the law encourages the development of carbon trading systems, offset projects, and internal carbon pricing. These tools are expected to boost investments in green tech, renewable energy, and circular economy models — all part of the UAE’s wider strategy to future-proof its economy in a changing world.
