For decades, sustainability reporting in the UAE was largely a voluntary exercise — something companies did to strengthen their brand or satisfy investors. That changed with Federal Decree-Law No. (11) of 2024 on the Reduction of Climate Change Effects, known simply as the UAE Climate Change Law. It’s no longer a question of if your business should measure its carbon footprint — it’s now a legal requirement.

If your company operates in the UAE, including in a free zone, this law applies to you. There is no size or sector exemption.

What the Law Requires

The Climate Change Law places four core obligations on in-scope entities:

1. Measure — build a greenhouse gas (GHG) emissions inventory covering your operations.
2. Report — submit emissions data through the national Monitoring, Reporting and Verification (MRV) platform, using methodologies set by the Ministry of Climate Change and Environment (MOCCAE).
3. Plan — submit details of both existing and planned GHG reduction measures.
4. Reduce — align your strategy with annual GHG reduction targets that MOCCAE will set for entities to work toward, in support of the UAE’s 2050 net-zero commitment.

One point trips up a lot of companies: an existing voluntary ESG report doesn’t automatically satisfy the law. Frameworks like GRI, TCFD, or CDP are valuable, but they don’t replace registration on the MRV platform or a structured, compliant reduction plan.

Larger emitters face an additional layer. Under Cabinet Resolution 67/2024, entities emitting 0.5 million metric tonnes of CO₂e or more per year (Scope 1 and 2 combined) are classified as “Entities of Huge Carbon Emission.” These businesses must register with the National Register for Carbon Credits, prepare a GHG inventory aligned with ISO 14064, and secure third-party verification from a MOCCAE-approved verifier.

The Timeline

• 28 August 2024 — The law was issued.
• 30 May 2025 — The law came into force.
• 28 June 2025 — Registration deadline for large emitters (≥0.5 MtCO₂e/year) with the National Register for Carbon Credits.
• 30 May 2026 — Full compliance deadline for in-scope entities; Scope 1 and Scope 2 reporting becomes mandatory.
• 2027 (anticipated) — Scope 3 reporting is expected to become mandatory, extending obligations across supply chains.

With the 30 May 2026 deadline approaching, the practical runway for building a defensible GHG inventory, setting organisational boundaries, and putting reporting systems in place is shorter than it looks. Data collection, boundary decisions, and internal sign-off all take longer than most teams expect the first time around.

The Cost of Non-Compliance

The law has real financial teeth. Entities that fail to meet their reporting requirements face fines ranging from AED 50,000 to AED 2,000,000. Repeat violations within a two-year period can see that penalty double, to as much as AED 4,000,000. Beyond the fines, non-compliance carries reputational risk in a market that is rapidly moving toward mandatory climate accountability — being unprepared is increasingly visible to regulators, partners, and clients alike.

Where to Start

For most businesses, the practical starting point looks like this:

• Define your organisational and operational boundaries (equity share vs. control approach)
• Map your emissions sources — fuel, electricity, refrigerants, fleet, generators, and any process emissions
• Build a GHG inventory using a recognised methodology (ISO 14064 is the standard reference point)
• Set science-informed reduction targets aligned with MOCCAE’s guidance
• Put in place the record-keeping systems needed to support your MRV submission and any future verification

None of this needs to be built from scratch internally, and for many companies, it shouldn’t be — getting the boundaries and methodology right the first time avoids costly rework later.

How Sustainability Pioneers Can Help

At Sustainability Pioneers, we work with companies on exactly this: GHG calculation, ISO 14064-aligned inventories, and net-zero target-setting. Whether you’re just starting to map your emissions or need support preparing for MRV registration and verification, we’d be glad to help you get there ahead of the 30 May 2026 deadline. If you’re unsure where your business currently stands, we’re happy to talk it through — reach out to us at sustainpioneers.com to start the conversation.