From 30 May 2025, businesses operating in the UAE will be legally required to measure, report and reduce their carbon footprint under the country’s new Climate Change Reduction Law.
The legislation applies across public and private sectors, including free zones, and introduces enforceable obligations alongside meaningful financial penalties for non-compliance. For many organisations, this represents a shift from voluntary climate commitments to formal regulatory accountability.
In this blog, we break down what the law covers, who it applies to, and the practical steps businesses can take to prepare.
What is the UAE Climate Change Reduction Law?
The law, formally titled Federal Decree Law No. 11 of 2024 on the Reduction of the Effects of Climate Change, supports the UAE’s Net Zero 2050 target and its commitments under the Paris Agreement.
This law aims to reduce greenhouse gas emissions across the economy while strengthening climate adaptation and resilience. Importantly, it introduces legally enforceable requirements for organisations whose activities contribute to climate change, moving beyond voluntary reporting or disclosure.
The law is overseen by the Ministry of Climate Change and Environment (MOCCAE), which sets sector-specific standards, reporting frameworks and enforcement mechanisms.
Who is affected by the UAE climate law?
The UAE climate law has economy wide scope and applies to:
- Public sector entities
- Private sector entities operating in the UAE, including those in free zones
- State owned and state funded enterprises
Further details on sector specific requirements, thresholds and implementation timelines are to be set out through decisions and guidance issued by the MOCCAE.
What does the UAE climate law require?
The UAE climate law sets out obligations relating to emissions data, mitigation measures and participation in national climate efforts.
Measurement and reporting of greenhouse gas emissions
Entities are required to measure and report greenhouse gas emissions in accordance with methodologies and standards issued by the MOCCAE. This includes maintaining records and documentation for regulatory review.
Implementation of mitigation and adaptation measures
The law requires the adoption of measures aimed at reducing emissions and addressing climate related risks, aligned with national plans and sector specific requirements.
Participation in climate action mechanisms
The legislation provides for participation in climate-related programmes and mechanisms established under national policy, including those linked to carbon markets, where applicable.
What are the timelines, enforcement and penalties
The UAE climate law came into force on 30 May 2025 and will be implemented in phases. Further detail on timelines, sector specific requirements and reporting expectations will be published by the MOCCAE as supporting regulations and guidance are issued.
At this stage, there are no varying compliance timelines by business size, sector or emissions level within the primary legislation.
Penalties for non compliance are set out in the law. Administrative fines range from AED 50,000 up to AED 2 million, increasing to AED 4 million in cases of repeated or serious breaches.
How Zevero supports businesses responding to the UAE climate law
Zevero works with teams to bring carbon data into one place, helping them calculate and maintain a clear, auditable footprint across Scope 1, 2 and Scope 3 categories. Alongside the platform, Zevero’s sustainability experts support methodology and reporting, making it easier to respond as regulatory guidance develops without needing to rebuild processes each time requirements change.
We work with teams that want to:
- Build a clear, repeatable approach to measuring carbon footprints
- Keep carbon data consistent and auditable over time
- Prepare for regulatory and disclosure requirements as they develop
- Improve confidence in the quality and traceability of carbon data
Key takeaways
- The UAE climate law came into force on 30 May 2025.
- It introduces legally binding requirements on greenhouse gas measurement, reporting and mitigation.
- The law applies across the public and private sectors, including free zones.
- Detailed timelines and sector specific requirements will be set out through Ministry guidance.
- Non compliance can result in fines of up to AED 4 million.
