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Here are the top 10 key points that businesses in the UAE need to know regarding their emissions based on Federal Decree-Law No. (11) of 2024 on the Reduction of Climate Change Effects:

1) Mandatory Emissions Reduction:

Businesses (sources) must reduce their greenhouse gas (GHG) emissions as part of the UAE's commitment to achieving climate neutrality. Methods include energy efficiency improvements, clean energy use, carbon capture, and offsetting measures.

2) Emissions Measurement and Reporting:

Businesses are required to regularly measure their emissions, maintain records, and submit reports detailing their emissions and reduction efforts. Records must be kept for five years, and authorities will verify data accuracy.

Zeroe helps enterprises measure their emissions and co-develop decarbonisation strategies in line with the UAEs requirements.

3) Penalties for Non-Compliance:

Non-compliance with the emissions reporting requirements can result in fines ranging from AED 50,000 to AED 2,000,000, with penalties doubled for repeat violations within two years.

4) Sector-Specific Emission Targets:

The government will set annual emission reduction targets for different sectors, aligned with national priorities and global best practices. Businesses must comply with these targets and follow sector-specific plans.

5) Adaptation and Mitigation Plans:

Businesses in sectors such as infrastructure, energy, and environment must develop adaptation plans to mitigate climate-related risks. These plans will be reviewed and submitted to the Ministry.

6) Carbon Offsetting and Incentives:

The law encourages businesses to adopt carbon offsetting practices and use carbon credits. Incentives, including emissions trading, may be available to support the adoption of new technologies for emission reduction.

7) National Carbon Credit Registry:

A registry will track carbon credits and emissions, allowing businesses to manage and report their carbon offsetting activities. This helps businesses monitor their contribution to climate neutrality.

8) Adaptation Plans for Vulnerable Sectors:

Specific sectors, such as health and insurance, must implement climate adaptation strategies. Data on economic and non-economic losses due to climate change must be reported to authorities.

9) Compliance with International Commitments:

Businesses must ensure their operations align with the UAE’s Nationally Determined Contributions (NDCs) under the Paris Agreement, which includes both mitigation and adaptation pledges.

10) One-Year Adjustment Period:

Businesses have one year from the law's enactment to comply with its provisions, including emission reporting and reduction measures. This period may be extended if necessary.

Law comes into effect: 30 May 2025

Read the Federal Decree-Law No. (11) of 2024 here.