The UAE has consistently positioned itself as a leader in addressing global climate challenges. Despite contributing less than 1% of global emissions, the UAE nevertheless faces acute climate risks, including rising temperatures, desertification, and the vulnerability of coastal infrastructure. With 85% of its population and over 90% of critical facilities—such as desalination plants, power stations, and major tourism and transportation hubs—located along coastal areas, the impacts of climate change pose a significant threat to the country’s socio-economic stability.

Recognizing these risks and the urgent need for action, HRH Sheikh Mohammed bin Zayed Al-Nahyan issued Federal Decree-Law No. 11 of 2024 on 28th August 2024 (hereinafter “Emirates Climate Law 2024”). The Emirates Climate Law represents a bold step in the nation’s climate governance, providing a robust legal framework to achieve Net Zero by 2050. Set to take effect on 30th May 2025, the law mandates comprehensive climate measures, including emissions management, reduction, adoption of green technologies, and shared accountability across public and private sectors.

Aligned with the Energy Strategy 2050, the Dubai Clean Energy Strategy 2050, and updated Nationally Determined Contributions (NDCs)—which target a 47% reduction in GHG emissions by 2035 compared to 2019 levels of 196.3 million tCO2e—this legislation cements the UAE’s position as a global climate leader. The law balances environmental objectives with economic priorities, fostering innovation, adaptation, and sustainable growth.

This issue brief provides a structured breakdown of the UAE Climate Law, decoding its articles, how businesses can be transformed, and how Ahya can strengthen enterprises in achieving compliance.

(I) Decode:
The UAE Federal Decree-Law No. 11 of 2024 provides a comprehensive framework for climate action through its 21 articles. Each article addresses specific aspects of climate governance, compliance, and enforcement, setting the stage for achieving Net Zero by 2050. A detailed interpretation of key articles is imperative to understand the law’s objectives and mandates.

The UAE Federal Decree-Law No. 11 of 2024 provides a comprehensive framework for climate action through its 21 articles. Each article addresses specific aspects of climate governance, compliance, and enforcement, setting the stage for achieving Net Zero by 2050. A detailed interpretation of key articles is imperative to understand the law’s objectives and mandates.‍

Article 3: Applicability ‍

Emirates Climate Law 2024 applies to all companies including free-zone companies. By encompassing all jurisdictions, the law ensures that no area or sector is exempt from its provisions. This inclusivity enhances the law’s potential impact by holding all entities accountable for emissions reduction, avoiding jurisdictional disparities

Article 6: Measurement, Reporting, and Verification (MRV)

At the heart of the law is a robust MRV framework, which ensures transparency and accountability in emissions management. Businesses must measure their greenhouse gas (GHG) emissions across all scopes—1, 2, and 3—using internationally recognized frameworks such as the GHG Protocol. Detailed emissions inventories must be maintained and submitted periodically to the Ministry of Climate Change and Environment (MOCCAE) through a centralized digital reporting system. Additionally, businesses are obligated to retain emissions data for at least five years, ensuring accessibility for audits and regulatory verification.

Article 10: Carbon Offset Mechanisms

This article focuses on incentivizing businesses to manage their carbon footprints through various mechanisms. It highlights the establishment of a National Carbon Credit Registry, which facilitates the purchase and trading of verified carbon credits. Additionally, the article introduces shadow carbon pricing to help businesses internalize the cost of carbon emissions. By promoting participation in emissions trading markets and offset mechanisms, the law enables enterprises to meet emissions targets.

Article 15: Penalties for Violations

Article 15 establishes a stringent penalty structure to ensure compliance with the law’s mandates, particularly MRV requirements. Non-compliance can result in fines ranging from AED 50,000 to AED 2 million, depending on the severity of the violation. The penalties for repeat offenses occurring within two years of a conviction are doubled, emphasizing the law’s zero-tolerance approach toward habitual non-compliance.

Article 18: Timelines for Operational Alignment

Recognizing the operational challenges businesses may face in achieving compliance, Article 18 provides a one-year timeline from the law’s effective date (30th May 2025) for enterprises to align their operations with its requirements.

Article 21: Effective Date

Article 21 specifies the timeline for the law’s enforceability. The Federal Decree-Law No. 11 of 2024 becomes effective nine months after its publication (28th August 2024) in the Official Gazette, providing a preparatory period until 30th May 2025.

(II) Transform: Implications for Businesses

The UAE Climate Law sets a new standard for corporate responsibility, impacting enterprises across sectors and jurisdictions, including Free Zones. Businesses must address the following:

• ‍Compliance with MRV Protocols: Implement robust systems to track and report emissions, ensuring data accuracy and regulatory adherence.
• ‍Adoption of Decarbonization Strategies: Transition to renewable energy, improve energy efficiency, and explore technologies like Carbon Capture, Utilization, and Storage (CCUS) to reduce emissions.‍
• Participation in Carbon Offset Markets: Invest in verified carbon credits to meet offsetting obligations.
• ‍Development of Adaptation Plans: Create sector-specific strategies to mitigate climate risks in vulnerable industries like energy, infrastructure, and transportation.

(III) Strengthen: How Ahya Can Support

Emirates Climate Law sets an ambitious framework for climate action, requiring enterprises to align with stringent measures for emissions reduction, adaptation, and compliance. As businesses face the challenge of meeting these regulatory mandates, AhyaOS and Tawazun, Ahya’s flagship products, provide a comprehensive, AI-powered platform to simplify compliance and accelerate net-zero transition.

By addressing the requirements of the Emirates Climate Law through data-driven insights, transparent reporting, and carbon offsetting mechanisms, Ahya equips enterprises to seamlessly integrate sustainability into their operations.

• AhyaOS:
  • AhyaOS is an enterprise-grade platform designed to simplify and optimize sustainability data management, making it as accessible and actionable as financial data. Built with a focus on the greater Middle East region, it offers localized operational models, including SaaS and Fully Managed Experience (FME), complemented by expert support from climate and data scientists.
  • Simplifies emissions measurement, reporting, and reduction, supporting MRV compliance under Article 6 and enabling decarbonization strategies aligned with Article 4.
• Tawazun:
  • Tawazun stands out as a regionally-focused VCM platform that prioritizes verified offsets and supports the greater Middle East’s climate goals. Its comprehensive approach connects buyers with high-quality offsets while empowering sellers to monetize and scale impactful climate projects.
  • Facilitates access to carbon offset markets, ensuring transparency and accountability in compliance with Article 10.

Ahya empowers businesses to navigate the complexities of climate compliance, turning challenges into opportunities for innovation and leadership in sustainability.