UAE unveils new climate law with fines up to Dh2 million
First-of-its-kind legislation in MENA region now in effect nationwide
ABU DHABI: The United Arab Emirates (UAE) has taken a historic leap forward with new climate legislation aimed at cutting emissions and boosting sustainability.
Effective from May 30, 2025, the Federal Decree-Law No. (11) of 2024 on the Reduction of Climate Change Effects establishes a robust legal framework aimed at achieving the country’s climate goals under the Paris Agreement and its Nationally Determined Contributions (NDCs).
As the first law of its kind in the MENA region, it targets critical sectors such as energy, infrastructure, and waste management, setting a new benchmark for regional climate action.
UAE new climate law
Under the new law, companies that fail to comply with emissions standards could face penalties ranging from Dh500,000 to Dh2 million.
A one-year grace period has been granted to allow industries to align their operations with the law’s requirements.
The legislation mandates the development of sector-specific climate adaptation plans and the reporting of climate-related damages to guide data-driven policymaking.
Mandatory monitoring system
A cornerstone of the legislation is the introduction of a Measurement, Reporting, and Verification (MRV) framework. This national system requires all emissions to be tracked via a centralised electronic platform and verified by independent third parties. Accurate reporting will be crucial for businesses to avoid financial penalties and remain compliant.
The law also creates a National Carbon Credit Registry that connects the UAE with global carbon markets. This registry will allow businesses engaged in early emissions reduction efforts to benefit through carbon credit trading. By monetising responsible practices, the registry aims to incentivise green transformation across industries.
Tools for Green transition
In addition to compliance measures, the new law encourages the rollout of internal carbon pricing, emissions trading systems, and offset projects. These tools are expected to attract investments in renewable energy, carbon capture technologies, and circular economy models. They also reinforce the UAE’s strategy to remain economically competitive while reducing its environmental impact.
Praise from Greenpeace MENA
Environmental advocates have hailed the move as a significant milestone. Greenpeace Middle East and North Africa (MENA) described the legislation as “a transformative step toward a more climate-resilient and sustainable future.” Ghiwa Nakat, Executive Director of Greenpeace MENA, called it a “bold and progressive” act that institutionalises emissions monitoring and sets a strong example for other countries in the region.
This climate law builds on the momentum of the 'UAE Consensus' reached at COP28 in Dubai and reflects the country’s commitment to transitioning toward cleaner energy systems. With a formal legal framework now in place, the focus will shift to effective implementation and sectoral transformation as the UAE positions itself as a regional leader in climate action.