The UAE Climate Law 2024 (Federal Decree-Law No. 11 of 2024) sets mandatory requirements for all businesses operating in the UAE, including free zones, to measure, report, and reduce greenhouse gas emissions. With strict compliance deadlines and growing investor focus on ESG, this law is reshaping how companies operate. This blog breaks down what the law entails, who it impacts, how to prepare, and why Sustainium can be your trusted partner in turning compliance into a competitive edge.
Introduction
The UAE Climate Law (Federal Decree-Law No. 11 of 2024) marks a significant shift in the nation’s approach to sustainability. It legally enforces climate action to support the UAE Net Zero by 2050 Strategy. For businesses, this law is not optional — it defines how operations must evolve in a low-carbon economy.
What is the UAE Climate Law 2024?
The UAE Climate Law provides a legal framework to reduce greenhouse gas (GHG) emissions across the country. Key provisions include:
- GHG Inventory: Companies must measure, monitor, and verify their emissions, maintaining records for at least five years for government audits.
- Carbon Registry: Allows tracking and conditional trading of carbon credits.
- Mandatory Mitigation Measures: Businesses must implement actions to lower emissions through technology, process changes, or offsets.
This law aligns national climate policy with global agreements such as the Paris Agreement, ensuring the UAE’s competitive position in sustainable global trade.
Who Does It Apply To?
The Climate Law applies to all entities operating within the UAE, including free zones, regardless of company size or industry. While enforcement may initially target large enterprises, small and medium-sized enterprises (SMEs) are not exempt.
Why Businesses Cannot Ignore This Law
Non-compliance carries significant consequences:
- Regulatory Risk: Fines and operational restrictions.
- Reputation Risk: ESG-focused investors may avoid non-compliant businesses.
- Financial Risk: Access to funding may be limited — 91% of MENA institutional investors now consider ESG performance essential ( MENA ESG Survey, 2024 ).
Conversely, compliance offers strategic advantages:
- Investor Confidence: Aligned companies are more attractive to global investors.
- Operational Efficiency: Energy-saving initiatives can cut costs by 15–25%.
- Market Competitiveness: Many international partners require ESG-compliant suppliers.
How to Prepare for Compliance
Businesses should start immediately by:
- Developing a GHG Inventory: Covering Scope 1, 2, and 3 emissions with robust monitoring tools.
- Establishing a Baseline and Targets: Setting measurable short-, medium-, and long-term reduction goals.
- Implementing Mitigation Strategies: Energy efficiency upgrades, renewable energy adoption, carbon capture, carbon offsets, and waste reduction programs.
- Assessing Climate Risks: Identifying regulatory, operational, and financial vulnerabilities.
Why Sustainium Can Be Your Ideal Partner
Navigating the UAE Climate Law requires more than awareness — it demands expert guidance, robust tools, and actionable strategies. This is where Sustainium can make a difference.
- Integrated ESG & Climate Solutions: From GRI-based ESG reporting to carbon accounting, Sustainium provides a unified platform to meet compliance requirements.
- Tool + Consultancy Model: Unlike standalone tools, Sustainium combines technology with expert advisory, ensuring accurate GHG inventories, actionable mitigation plans, and audit readiness.
- Regional Expertise: With deep knowledge of UAE-specific regulations and MOCCAE guidelines, Sustainium ensures your compliance efforts are aligned with local expectations and global best practices.
- Future-Ready Approach: Beyond compliance, Sustainium helps businesses embed sustainability into core operations, unlocking long-term growth and investor confidence.
Partnering with Sustainium means turning compliance from a burden into a competitive advantage.
Conclusion: A Regulatory Requirement and Growth Opportunity
The UAE Climate Law 2024 is more than compliance — it is a catalyst for business transformation. By integrating climate action into core operations, companies not only meet legal obligations but also unlock long-term value.
- Compliance is mandatory for all entities in the UAE.
- Early action reduces risk and enhances competitiveness.
- Partnering with experts like Sustainium can accelerate readiness and drive sustainable growth.
- Sustainability is now directly tied to your license to operate in the UAE.