In a decisive step toward realizing its Net Zero by 2050 target, the United Arab Emirates has enacted two major climate laws in 2024 that elevate sustainability from a corporate value to a legal obligation. These forward-looking regulations (Federal Decree-Law No. (11) of 2024 On the Reduction of Climate Change Effects and UAE Cabinet Resolution 67 of 2024) place emissions reduction and climate transparency at the heart of national policy. For businesses across the MENA region—whether established corporations or ambitious SMEs—this marks a turning point: climate disclosure and measurable climate action are now regulatory requirements, not voluntary best practices.
Federal Decree-Law No. (11) of 2024: The Legal Mandate for Climate Accountability
The UAE has taken a significant legislative step toward addressing climate change with the introduction of Federal Decree-Law No. (11) of 2024 on the Reduction of Climate Change Effects, which is set to take effect on 30 May 2025. This law reinforces the country’s dedication to global climate goals, including those outlined in the Paris Agreement, and strengthens its role as a proactive leader in international sustainability efforts.
Under this decree, competent local authorities—such as municipalities, free zones, and other designated bodies—are required to develop and implement comprehensive climate change mitigation and adaptation strategies.
Cabinet Resolution 67 of 2024: Climate Disclosure Is Now Mandatory
Building on this legal foundation, the UAE Cabinet Resolution 67 of 2024 makes climate-related disclosures mandatory for businesses across key sectors. Under this resolution, companies must now report:
- Greenhouse Gas (GHG) emissions
- Direct and Indirect emission resulting from operations and operating activities
- Mitigation strategies and emissions reduction plans
If your company generates more than 0.5 MtCO₂e in Scope 1 and 2 emissions annually, submitting these disclosures to the UAE Ministry is a legal obligation. For businesses under this threshold, reporting remains voluntary—but strongly recommended, especially as the region lays the groundwork for future mechanisms such as carbon pricing, emissions trading, and climate-aligned investments.
Scope of the Resolution: Who Will Be Affected?
The Resolution affects both public and private sector organizations in the UAE:
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- Large Emitters: Organizations that release 0.5 million metric tons or more of CO₂e per year accounting for both direct (e.g., on-site fuel combustion) and indirect (e.g., purchased electricity) sources of emissions. Compliance with the Resolution will be mandatory for these entities due to their significant environmental impact.
- Voluntary Participants: Organizations that emit less than 0.5 million metric tons of CO₂e per year may also fall under the scope of the Resolution if they choose to voluntarily register. This allows smaller emitters to contribute to national climate goals and align with best practices in sustainability and carbon management.
What’s at Stake If You Don’t Comply?
Failure to comply with these new climate mandates can lead to significant operational and reputational consequences:
- Administrative penalties and legal consequences
- Increased operational costs due to inefficient emissions management
- Reputational harm among investors, clients, and supply chain partners
- Loss of relevance as ESG standards tighten across global markets
Not Sure Where to Begin? Start with Our Free Carbon Emissions Tool
Whether you’re a large enterprise or a fast-growing SME, your journey to compliance begins with a clear understanding of your carbon footprint.
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Why Olive Gaea Is Your Climate Compliance Partner
At Olive Gaea, we don’t just help businesses meet climate regulations—we help them thrive within them. Our AI platform, ZERO by Olive Gaea, enables seamless compliance by helping you:
- Conduct government-grade carbon accounting
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- Prepare regulatory-ready reports in line with UAE law
- Gain insights from science-based emissions tracking
With deep expertise in MENA’s regulatory and sustainability landscape, we’re here to help your business move from climate compliance to climate leadership.
The Time to Act Is Now
The UAE’s 2024 climate laws are more than just policy—they represent a nationwide call to action for every business to step up, stay compliant, and help build a sustainable future. Whether you’re a major corporation or a small business, the government has made it clear: all organizations are expected to submit their climate reports.
Don’t miss this opportunity to stay ahead of the curve.
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