UAE Climate Law: 30 May Is Around the Corner - Are You Ready?

UAE Climate Law: 30 May Is Around the Corner - Are You Ready?

A few months ago, we wrote about UAE Federal Decree-Law No. 11 of 2024 and what it could mean for businesses operating in the country in our earlier blog on UAE Climate Law. At the time, most organisations were still trying to understand what the law required and how it might evolve.

Now, with 30 May 2026 approaching, that question has changed. It is no longer about understanding what the law says - it is about whether you are actually ready for it.

UAE Climate Law - Key Facts

A quick reminder of what this actually means

What is the UAE climate law asking companies to do?

Under Federal Decree-Law No. 11 of 2024, companies operating in the UAE are required to measure, report, and reduce their greenhouse gas emissions in a structured way. This moves emissions tracking from something voluntary to something that sits within a formal regulatory framework. The expectation is not just to produce a number once, but to build a process that can be repeated and improved over time. For most organisations, this means putting in place a consistent way to collect data, calculate emissions, and report it through the required systems.

What emissions are covered right now?

For 2026, the focus is on Scope 1 and Scope 2 emissions - direct emissions from your operations and indirect emissions from purchased electricity. While this may sound straightforward, most organisations find that pulling this data together is the first real challenge. It often sits across different teams and systems and bringing it into one consistent format takes time. This is why many companies are starting with these scopes first, to build a baseline before moving into more complex areas.

What about Scope 3?

Scope 3 is not mandatory for everyone immediately, but it is clearly where the regulation is heading. From 2027 onwards, there will be increasing expectations around value chain emissions, particularly for organisations where these form a significant part of their footprint. In practice, this means companies will need to start engaging with suppliers, procurement teams, and partners to gather data that has not traditionally been tracked. Even if it is not required today, leaving this too late usually creates challenges later.

How is this reported?

Reporting is done through the national Measurement, Reporting and Verification (MRV) platform, which acts as a central system for emissions data across the country. This changes how organisations need to think about reporting, because the data is no longer just internal. It needs to be structured, consistent, and something that can be reviewed externally. For many teams, this is the first time reporting is happening in a standardised format, which is why setting things up correctly early on becomes important.

Who oversees this?

The framework is overseen by the UAE Ministry of Climate Change and Environment (MOCCAE), which defines the requirements, reporting formats, and sector-specific expectations. At the same time, methodologies are aligned with global standards such as the GHG Protocol, ensuring that emissions are calculated in a consistent and recognised way. This combination of local oversight and global standards is what allows data to be both comparable within the UAE and credible internationally.

Is this still voluntary?

No. This law formalises emissions reporting as a requirement for organisations operating in the UAE, rather than something that can be approached informally. While many companies have already started sustainability reporting in different forms, this brings a level of consistency and accountability that was not there before. It also means that organisations need to move away from ad hoc approaches and start building something more structured and repeatable.

Are there additional requirements for larger emitters?

Yes. Organisations with higher emissions levels are subject to additional requirements, including mandatory registration, more detailed reporting, and independent verification. These entities are expected to meet stricter standards in terms of data quality and transparency and are more likely to be reviewed or audited. This creates a clear distinction between basic compliance and more advanced expectations, depending on the scale of emissions.

Do all companies need to be audited?

Not all organisations will be audited immediately, but verification is a key part of the direction the regulation is taking. Larger emitters will be required to undergo independent third-party verification, and even smaller organisations are expected to maintain data that is accurate and traceable. In practice, this means that whatever system you put in place today should be able to stand up to review later, even if that review is not immediate.

What happens if we don’t comply?

Non-compliance carries financial penalties, ranging from AED 50,000 to AED 2 million, with escalation for repeat cases. However, beyond the fines, the bigger challenge is usually operational. When systems are not in place, organisations struggle with rushed data collection, inconsistent reporting, and difficulty responding to regulatory or stakeholder requests. That tends to create more pressure than the penalties themselves.

A quick self-check before you get started

Before you think about reporting, it helps to step back and see where you actually stand. Most organisations don’t realise the gaps until they go through this.

Start your carbon journey

If you’re not sure where to begin, start simple. Get a first view of your emissions using whatever data you already have and build from there. You can use our free carbon calculator to get an initial estimate just enough to understand where you stand and what you’ll need to put in place next.

How KarbonWise helps

We work with organisations across the UAE, so we’re familiar with how data is typically structured, where gaps show up, and what it takes to get to a point where reporting actually works.

Depending on where you are, this could mean setting up your carbon accounting from scratch, structuring and cleaning existing data, or moving onto a platform that makes calculations and reporting easier.

If you’re looking to get started quickly, you can book a demo and we’ll walk you through what this could look like in your case.

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