UAE issues new Decree & Resolution to help meet its climate goals

The Decree aligns with the UAE’s broader sustainability strategy by providing a regulatory framework to support the country’s ambitious climate goals, and targets public and private sector entities, including those in free zones. Key highlights of the Decree:

• R&D and innovation decarbonisation measures achieved via applying a range of actions, including greater energy efficiency, use of clean energy, and carbon offsetting.
• The measurement, reporting, and verification of GHG emissions. Companies will need to regularly measure their emissions, create an emissions inventory, and submit periodic reports.
• Carbon reduction incentives. The Ministry and local authorities will incentivise companies to adopt new technologies and methods and embrace advanced ways to lower emissions.

The effective date of the Decree is 30 May 2025. Penalties for non-compliance range from AED 50,000 to 2,000,000. The Resolution supports the UAE’s commitment to lowering emissions and enhancing sustainability, and is aimed at entities emitting 0.5 million metric tons of CO2 equivalent or more annually. Companies will have to:

• Monitor their GHG emissions, based on the latest IPCC methodologies / guidelines.
• Annually report their GHG emissions, including adoption of approved Greenhouse Gas Inventory Protocol standards.
• Undergo verification of their emissions by a Ministry authorised agency. The agency will approve the emissions reduction verification scope for products and organisations, as per ISO 14064 or ISO 14067 standards.

The effective date of the Resolution is 28 Dec 2024. A penalty of up to AED 1,000,000 will apply for non-compliance. To see the full text of the Decree visit this page and for the Resolution visit here.