UAE climate law / ESG
Federal Decree-Law No. 11 of 2024 on the Reduction of Climate Change Effects; DFM and ADX ESG guides
Topic : Climate · Level : National
Today
In force 30 May 2025. 30 May 2026 deadline: MOCCAE signalled extension, no new date (Aug 2026). DFM/ADX guides voluntary.
Summary
The UAE climate law requires emitters, including free zones, to measure, report and verify emissions. It has applied since May 2025 with fines up to AED 2m. Listed-company ESG guides of DFM and ADX remain voluntary.
Who is concerned
- Turnover
- non précisé
- Employees
- non précisé
- Listed company
- cotées et non cotées
- Sectors
- Industry
- Power, oil and gas
- Transport
- All listed PJSCs (reports)
- Triggering activities
- Emission source in UAE, incl. free zones
- Scope 1+2 >= 0.5 MtCO2e/yr (carbon register)
- Abu Dhabi facility >= 25,000 tCO2e Scope 1
- Extraterritorial reach
- No
Applies to emission sources on UAE territory only; suppliers abroad are hit indirectly via buyer data requests.
- Examples
- Abu Dhabi aluminium or steel plant
- Chinese-owned factory in a UAE free zone
- DFM-listed real-estate developer
What the law requires
- Measure and report Scope 1 and 2 emissions annually (GHG Protocol)
- Keep emission records and submit to MOCCAE or emirate authority
- Have reports verified by an ISO 14065 accredited verifier
- Set reduction plans; register on carbon credit register if >0.5 Mt
Penalties
AED 50,000 to AED 2,000,000 for MRV breaches; doubled for repeat within 2 years. Carbon register: up to AED 500k / 1m / 2m.
What this changes for a supplier in China
Chinese plants located in UAE free zones are directly covered. Exporters to UAE buyers receive Scope 1-2 and product data requests as UAE firms build inventories.
Expected evidence
- Scope 1-2 inventory per GHG Protocol
- Energy invoices and fuel records
- ISO 14064 or verifier statement
Tiers : Tier 1