UAE Enacts Landmark Climate Legislation

New Climate Law Enacted with Up to 2 Million Dirham Fines

On May 30, the United Arab Emirates' new climate law came into effect, marking a milestone in the MENA region as the UAE becomes the first country in this area to provide a legal framework for climate resilience and emission accountability. The 2024 Federal Decree-Law No. 11 offers a comprehensive framework for reducing greenhouse gas emissions while maintaining the country’s economic growth and regional leadership role.

What does the new law include?

The law sets specific reduction targets in key sectors such as energy, infrastructure, and waste management. It also supports the introduction of advanced climate technologies such as carbon capture, utilization, and storage (CCUS), as well as the development of natural carbon sinks.

A crucial feature of the law is the robust Measurement, Reporting, and Verification (MRV) framework, which mandates emission records, third-party audits, and the establishment of a national electronic tracking platform. Under the law, violations may result in fines ranging from a minimum of 500,000 dirhams to a maximum of 2 million dirhams. Additionally, a National Carbon Credit Registry will be created to link the UAE to international carbon markets, encouraging businesses to take proactive climate actions.

One-year preparation period

Industries will have a one-year grace period to adapt to the new requirements. The UAE government’s aim to institutionalize mitigation, adaptation, and innovation ensures not only the country's future but also sets an example for the world's hydrocarbon-rich economies.

The law not only focuses on reducing emissions but also prescribes sector-specific climate adaptation plans, like sharing data on climate damages, allowing policymakers to make accurate, evidence-based decisions.

Economic Incentives and International Commitment

The new regulation encourages the development of emissions trading systems, carbon offset projects, and internal carbon pricing. These tools promote investments in renewable energy, green technologies, and circular economic models—foundational to the strategy helping the UAE remain competitive in a low-carbon future.

The decree reinforces the UAE's commitment to international climate agreements, including the Paris Agreement and national commitments (NDCs).

International Recognition

Greenpeace Middle East and North Africa (MENA) welcomed the new law, calling it a “transformative step” in the UAE’s climate policy framework. They highlighted that through this step, the country sends a strong message to the region and globally: climate resilience and sustainable development are now national priorities.

Summary

The UAE's new climate law signals a paradigm shift in the region, indicating that combating climate change is not at the expense of economic growth but is integral to it. The country's ambition to set a global example in the green transition is evident with this significant step toward a sustainable future.

(Source of the article: Based on Federal Decree-Law No. (11) of 2024.)