On May 30, 2025, the United Arab Emirates officially brought into force Federal Decree Law No. 11 of 2024 on the Reduction of Climate Change Effects, changing the nation’s approach to climate governance. This legislation positions the UAE as the first country in the Middle East and North Africa region to establish a binding legal framework for climate action, aligning with its Net-Zero by 2050 Strategic Initiative and its commitments under the Paris Agreement.
The new law applies to all public and private sector entities operating within the UAE, including those in the UAE’s business-friendly free zones. It mandates these entities to measure, report, and manage their greenhouse gas emissions, promote climate adaptation, and enable participation in carbon credit markets.
Under Federal Decree-Law No. 11 of 2024, entities are required to monitor and report the greenhouse gas emissions they generate in accordance with methodologies approved by Ministry of Climate Change and Environment. (Art. 5.) They must document emissions data in a national inventory and submit it periodically to officials. Furthermore, the law mandates climate risk assessment and adaptation measures, requiring organizations to identify climate-related threats to their operations and take appropriate actions to mitigate potential impacts. (Art. 6.) Entities must also develop and implement action strategies aimed at reducing the environmental impacts of their actions and supporting sustainable adaptation to climate change. (Art. 7.) Moreover, the law establishes a national framework for cooperation between federal and local authorities, as well as the private sector, to harmonize climate efforts. (Art. 9.)
In addition, the law includes robust enforcements provisions. Noncompliance can result in financial penalties ranging from AED 50,000 (about US$13,600) to AED 2,000,000 (about US$544,500) (Art. 15), with repeat violations within two years subject to a double fine. (Art. 16.)
In parallel with the decree law, the government issued UAE Cabinet Decision No. 67 of 2024 concerning the National Carbon Credit Registry. This decision subjects entities to mandatory participation in emissions-tracking and carbon-market mechanisms. It further clarifies program thresholds, verification procedures, and the scope of carbon credit eligibility.
Prepared by Rana Almalki, Law Library Intern, under the supervision of George Sadek, Foreign Law Specialist
Law Library of Congress, June 24, 2025
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