UAE Federal Decree Law No. 11 of 2024 introduces a mandatory national framework for climate action and greenhouse gas management. This guide explains the core requirements of Federal Decree Law 11 UAE compliance. It helps organisations understand and implement UAE climate change law compliance, UAE greenhouse gas reporting law, and UAE emissions reporting requirements in a clear and structured way.
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Overview of Law
The UAE Federal Decree Law No. 11 of 2024, officially titled “On the Reduction of Climate Change Effects,” was issued on August 28, 2024, and came into effect on May 30, 2025. This legislation makes the UAE the first country in the MENA region to establish a legally binding climate framework.
The law supports the national Net Zero by 2050 strategy, the UAE’s Nationally Determined Contributions (NDCs), and its obligations under the Paris Agreement. It requires every sector to measure, report, and reduce greenhouse gas (GHG) emissions, moving climate responsibilities from voluntary action to enforceable duties. Key focus areas include mitigation through clean energy, carbon capture and storage, and recognised offset mechanisms, alongside measures for climate adaptation.
Who Must Comply?
Federal Decree Law No. 11 applies broadly to entities operating in the UAE. The law does not set minimum thresholds for size, revenue, or emissions, meaning most organisations must assess their obligations.
- Applies to all public and private entities operating in the UAE, including free zone companies
- No minimum threshold for company size, revenue, or emissions volume
- Includes SMEs, which must evaluate their reporting and compliance responsibilities
- Higher compliance expectations for emissions-intensive sectors such as energy, oil and gas, manufacturing, transportation, construction, and real estate
- Covers organisations whose activities generate greenhouse gas emissions
- Requires entities to conduct a self-assessment based on guidance issued by Ministry of Climate Change and Environment (MOCCAE)
- Non-compliance may result in significant penalties
Early assessment of applicability under Federal Decree Law No. 11 is essential to manage risk and ensure timely compliance.
Emissions Reporting Obligations services
UAE emissions reporting requirements oblige entities to measure and disclose greenhouse gas emissions on a regular basis using methodologies approved by MOCCAE. This includes preparing detailed inventories that capture Scope 1 (direct emissions), Scope 2 (indirect emissions from purchased energy), and relevant Scope 3 (value chain) emissions.
Reports follow prescribed formats and submission schedules. All supporting data and calculations must be retained for a minimum of five years for regulatory review. The UAE greenhouse gas reporting law demands high standards of accuracy, completeness, and transparency, with data contributing to the national GHG inventory.
Reporting commenced after enactment, and full compliance is required by May 30, 2026. Organisations must also prepare credible emission reduction plans that incorporate measures such as energy efficiency upgrades, renewable energy adoption, and other actions aligned with national targets, including a 47% reduction in GHG emissions by 2035 compared to 2019 levels.
MRV Framework
The Measurement, Reporting, and Verification framework forms the core of UAE climate compliance. Aligned with Article 13 of the Paris Agreement, it establishes a national system for tracking greenhouse gas emissions.
Entities must implement internal data collection processes using approved standards and tools issued by the Ministry of Climate Change and Environment. Reported data is subject to third-party verification by accredited auditors. The framework supports the UAE’s national reporting commitments and Net Zero objectives.
IEQT Reporting
The Integrated Emissions Quantification Tool, introduced by MOCCAE in October 2025, is the mandatory digital platform for emissions reporting under the MRV system.
Organisations must map emission boundaries, including Scopes 1 to 3, within the platform and meet prescribed submission timelines. Proper training and accurate data entry are essential to ensure compliance and avoid reporting errors.
Penalties & Enforcement
Non-compliance with Federal Decree Law No. 11 of 2024 triggers serious consequences. Administrative fines range from AED 50,000 to AED 2,000,000, depending on the nature, severity, and impact of the violation. MOCCAE and other authorised bodies enforce the law through regular inspections, detailed audits, and mandatory corrective orders. For repeat offences within two years of a prior conviction, fines may be doubled.
Repeated violations or failure to address identified issues can lead to escalated penalties or temporary suspension of operations. The law incorporates elements of Federal Law No. 31 of 2021 to reinforce compliance obligations.
Strong internal governance, regular self-audits, and proactive controls are essential to reduce enforcement risk and demonstrate adherence to UAE emissions reporting requirements.
Industry Impact
UAE Federal Decree Law No. 11 of 2024 reshapes operations in carbon-intensive industries. The law creates significant change across multiple sectors:
Energy and oil & gas companies face increased pressure to quantify and reduce emissions, driving accelerated deployment of carbon capture, utilisation, storage, and renewable generation.
Manufacturing and construction sectors must integrate low-carbon materials and processes.
Transportation is moving toward electrification and cleaner fuels.
Transportation is moving toward electrification and cleaner fuelReal estate developers are required to incorporate climate-resilient designs and lower operational emissions to meet adaptation standards.s.
The law promotes innovation in clean technology, sustainable finance, and ESG solutions. While it raises short-term compliance costs for some organisations, it opens long-term competitive advantages and strengthens the UAE’s appeal to global investors prioritising environmental performance.
Compliance Roadmap
Achieving UAE climate change law compliance follows a clear, step-by-step process:
Assessment Phase: Build a complete baseline greenhouse gas inventory that identifies all emission sources and scopes.
- System Setup: Deploy data management systems designed to integrate with MRV and IEQT requirements.
- Reporting Preparation: Train relevant staff on MOCCAE guidelines and prepare accurate reports for on-time submission.
- Reduction Planning: Create and implement mitigation strategies, including energy audits, efficiency projects, and offset programmes aimed at verifiable reductions.
- Verification and Review: Contract accredited third-party auditors for mandatory verification and schedule annual internal reviews.
- Ongoing Monitoring: Keep detailed records and update compliance plans regularly to reflect regulatory changes and operational developments.
Full compliance must be achieved by May 30, 2026. MOCCAE offers transitional support to assist organisations during implementation.
How HLB HAMT Supports
With more than 25 years of experience as a leading audit, tax, and advisory firm in the UAE, HLB HAMT provides expert guidance on UAE Federal Decree Law No. 11 of 2024. Our ESG specialists deliver practical, tailored solutions across the full compliance lifecycle.
Our services include greenhouse gas inventory preparation, MRV framework implementation, IEQT reporting support, third-party verification coordination, and development of custom emission reduction strategies. Our teams operate from offices in Dubai, Abu Dhabi, and other key locations, offering hands-on assistance wherever needed.