UAE’s Federal Decree-Law No. 11 of 2024: Implications for Businesses and the Environment
A pivotal move towards achieving Net-Zero emissions by 2050.
Introduction to the Decree
Starting May 2025, the UAE will implement Federal Decree-Law No. 11 of 2024 to combat climate change. This law requires businesses to track and report their greenhouse gas (GHG) emissions, ensuring greater accountability in reducing environmental impact.
Objectives of the Decree
The decree aims to tackle climate change through three key objectives: Mitigation, by reducing emissions to support global efforts; Adaptation, by strengthening ecosystems and industries against climate risks; and Innovation, by encouraging new technologies for a more sustainable future.
Key Requirements for Businesses
Businesses must follow key regulations under the new law. They are required to measure and report their GHG emissions regularly, keep a detailed record of emissions and reduction efforts, and meet industry-specific targets set by authorities to help lower emissions.
Who is Affected?
The decree applies to all public and private businesses in the UAE, including those in Free Zones, that generate greenhouse gas (GHG) emissions. This regulation ensures compliance with UAE climate laws and promotes sustainable business practices.
Compliance Timeline
– Effective Date: May 30, 2025.
– Transition Period: One-year grace period for implementation, with potential extensions.
Incentives for Early Action
Authorities plan to offer incentives for companies that proactively establish decarbonization plans ahead of the mandated schedule.
Penalties for Non-Compliance
Failure to comply may result in fines ranging from AED 50,000 to AED 2,000,000, with doubled penalties for repeat violations within two years.
Steps to Prepare
To get ready for the new law, begin by taking stock of your emissions through a GHG inventory, so you know where they’re coming from. Then, put together a reduction plan with clear steps to help you meet the targets ahead. Lastly, it’s a good idea to work with experts or sustainability consultants to guide you and make sure you stay on track.
Embrace Sustainability Today
By taking action now to meet sustainability regulations, you’re not just following the rules—you’re also setting your business up as a leader in caring for the environment.
