The construction industry in the GCC region is undergoing a monumental shift. In our recent webinar, industry leaders such as Pavan Chilukuri (Holcim), Dr. Jagannathan P. (Sobha Realty), Luma Saqqaf (Ajyal Sustainability), and Vivek Tripathi (Olive Gaea) discussed how the sector is evolving amidst increasing climate pressures and regulations. Building upon those insights, this blog provides a step-by-step guide for construction companies aiming to align with new sustainability mandates and capitalize on the opportunities of a greener future.
The urgency is clear: The UAE’s Federal Decree-Law No. (11) of 2024 on the Reduction of Climate Change Effects and Cabinet Resolution No. (67) of 2024 are ushering in a new era of climate accountability. These regulations mandate emissions monitoring, reporting, and reduction across industries—especially for businesses emitting over 0.5 million metric tons of CO₂ annually (Scope 1 & 2). For construction firms, compliance is no longer optional—it’s essential for continued growth and competitiveness.
Step 1: Understand the Regulatory Landscape
Before making any changes, it’s vital to grasp what’s required under UAE’s new climate law. Construction companies must now:
- Track Scope 1 and Scope 2 emissions accurately
- Begin Scope 3 readiness planning
- Develop decarbonization roadmaps with science-based targets
- Prepare for auditable reporting and regulatory verification by May 30, 2025
Failure to act could lead to penalties, limited project eligibility, and loss of investor confidence. But those who move early can position themselves as sustainability leaders in a region where climate regulations are accelerating.
Step 2: Conduct a Baseline Carbon Assessment
To comply with the law, businesses need to know where they stand.
- Measure direct emissions from construction activities (Scope 1)
- Track indirect emissions from energy consumption (Scope 2)
- Begin engaging suppliers for Scope 3 data
Step 3: Define Short- and Long-Term Sustainability Goals
As outlined by Dr. Jagannathan, a dual strategy works best:
Short-Term Goals:
- Switch to renewable energy at construction sites
- Improve waste management and resource efficiency
- Electrify machinery and adopt energy-saving practices
Long-Term Goals:
- Invest in modular construction and digital twins
- Adopt clinker-free cement, biosim, and other low-carbon materials
Leverage AI and smart sensors to optimize energy and material use
Step 4: Integrate Decarbonization into Procurement
Procurement teams must begin assessing vendors based on carbon intensity, aligning purchasing decisions with sustainability KPIs. This creates a ripple effect across the supply chain, encouraging suppliers to reduce their own emissions.
Step 5: Evaluate Technology Investments
Technology is central to driving cost-effective change:
- AI-powered tools streamline emissions forecasting and scenario planning
- Building Information Modeling (BIM) reduces delays and rework
- Smart sensors monitor construction emissions in real time
- Digital twins optimize building performance during design and operations
Olive Gaea’s ZERO platform supports these advancements with real-time data analysis, carbon reduction planning, and automated ESG reporting.
Step 6: Educate and Train Internal Teams
Your green transition is only as strong as your team’s understanding of it. Invest in:
- Carbon literacy workshops for engineers and procurement officers
- ESG training for leadership
- Onboarding sessions for suppliers and contractors
Step 7: Access Sustainable Financing
As Luma Saqqaf noted, access to green capital is easier for businesses with robust ESG and carbon disclosure systems.
- Ensure your emissions reports align with international standards (CSRD, CDP)
- Partner with third-party verifiers or platforms like ZERO
- Engage with banks and institutional investors offering green bonds or sustainability-linked loans
Step 8: Report Transparently and Regularly
Under Cabinet Resolution No. 67, transparent reporting is key to avoiding penalties and building stakeholder trust.
With the right tools, construction companies can:
- Generate investor-grade reports
- Monitor progress on KPIs
- Prepare for third-party auditsPlatforms like ZERO consolidate emissions data and generate compliant, shareable reports.
The green transition in the GCC construction sector is not just a regulatory challenge—it’s a strategic business opportunity. Companies that adopt early, measure proactively, and reduce emissions can strengthen brand reputation, win investor trust, and stay ahead of policy shifts.
At Olive Gaea, we’re helping industry leaders like Sobha Realty, Neom, Bioderma, ITC Hotels and many more accelerate their net-zero journeys with AI-powered carbon management and ESG solutions.
Turn the UAE’s Carbon Law into a Competitive Advantage.
Report your emissions, reduce your impact, and lead the green future.
Book a free consultation with our sustainability experts today.
