What Are These Laws?
In 2024, the UAE firmly moved from voluntary climate commitments to binding regulatory systems with two major instruments:
- Federal Decree‑Law No. (11) of 2024 on the Reduction of the Effects of Climate Change – The UAE’s first standalone climate law, embedding climate obligations into national statute. It applies across all Emirates and economic zones (including free zones) and comes into force on 30 May 2025.
- Cabinet Resolution No. (67) of 2024 – Establishment of the National Register for Carbon Credits (NRCC). Effective from 28 December 2024, this resolution sets up a national registry, legal framework for trading carbon credits, and rules for monitoring, reporting, and verification (MRV).
Why Were They Introduced?
- From Pledge to Enforcement: These laws translate the UAE’s Net Zero by 2050 ambition into enforceable obligations.
- Promote a credible Carbon Market: The framework establishes transparency and trust for trading carbon credits.
- Align With Global Standards: Regulatory certainty attracts ESG-focused investors and capital.
- Encourage Decarbonisation: Businesses are now legally pushed to adopt emission reduction measures and clean technologies.
Who Is Affected?
Under Cabinet Resolution No. 67 of 2024, entities with Scope 1 and 2 emissions in excess of 0.5 million tonnes CO₂e annually must register with the NRCC and implement full Monitoring, Reporting, and Verification (MRV) systems.
Under Federal Decree-Law No. 11 of 2024, all organisations in the UAE (including free zones) must track, manage and report their impacts on the climate through their carbon footprint. There is an “adjustment of status” period of one year (from May 2025) to allow organisations to comply.
Penalties can reach up to AED 2 million for non-compliance.
What Will Companies Need to Do Differently?
All organsations (subject to delegated authorities):
- Build, upgrade, or maintain MRV systems for Scope 1 and 2 (and potentially Scope 3) emissions.
- Report verified emissions data regularly and maintain records for at least five years.
- Adhere to Emirate level requirements regarding setting and achieving a carbon reduction strategy
- Integrate climate strategy into corporate governance and risk management.
- Engage supply chains to align emissions data and decarbonisation plans.
- Prepare for financial penalties and disclosure obligations if non-compliant.
Organisations with scope 1 & 2 emissions in excess of 0.5m tCO2e:
- Register with the NRCC (where applicable) by the required deadline (28 June 2025 for initial entities).
- Offset unavoidable emissions using NRCC-approved carbon credits.
How Axis Green Can Help
- Climate Law Readiness Assessment – Identify exposure, obligations, and opportunities.
- Emissions Baseline & MRV System Design – Establish robust, compliant monitoring and reporting frameworks.
- NRCC Registration & Compliance Support – Manage registration, documentation, and verification processes.
- Offset Strategy & Credit Flow Management – Source and manage NRCC-compliant carbon credits.
- Decarbonisation Roadmaps – Create practical emission reduction strategies across operations.
- Scenario Modeling & Risk Testing – Assess regulatory and financial exposure to future carbon prices.
- Training & Governance – Build internal awareness and embed sustainability governance.
- Stakeholder Strategy – Communicate your compliance journey to regulators, clients, and investors.
Final Thoughts: Why This Moment Matters
The UAE is no longer talking about climate—it’s legislating it. Early movers will gain competitive advantage through credibility, investor confidence, and cost control. This new regulatory framework is not just compliance—it’s an opportunity to participate in a new asset class and strengthen long-term business resilience.
Axis Green helps you turn regulation into opportunity, guiding you through every step of your compliance and sustainability journey.
