Federal Decree-Law No. 11: UAE’s Roadmap for Climate Responsibility

 UAE, renowned for its innovative thinking and vision, has taken a massive step towards tackling the most pressing global challenges today - “Climate Change”.


Federal Decree Law No. 11 of 2024 on the Reduction of Climate Change Effects is a pivotal stepping towards stone the UAE’s sustainable future. Across the globe, communities are taking action in ways that reflect their unique realities. Their local solutions are not only creating meaningful change at home but also offering inspiring blueprints that could be scaled to benefit the planet as a whole. 


What does the Federal Decree Law No. 11 enforce? The Federal Decree Law No. 11 of 2024 sets clear objectives for emission reduction, adapting to climate impacts, and promoting sustainable development across all public and private companies, including free zones. It focuses on managing emissions, enhancing climate adaptation, supporting green innovation, and aligning national strategies with UN SDGs.


The Federal Decree Law No. 11 of 2024 obligates innovation, promoting research, and development, adopting modern technologies, capacities, strengthening increasing private sector involvement, and fostering international cooperation to advance climate mitigation and adaptation efforts in the UAE. The law requires organizations to reduce their emissions to help achieve climate neutrality. This can be done by improving energy efficiency, using clean energy, protecting natural carbon sinks, applying carbon capture and storage (CCUS), using alternatives to harmful gases, offsetting emissions, managing waste sustainably, or through other approved technologies. Organizations that fail to comply may face penalties ranging from AED 50,000 to AED 2,000,000, with fines doubled for repeated violations.

The law also mandates the creation of a National Carbon Credit Registry and other Climate Action Boards or Committees, alongside Climate Change Adaptation Plans to measure risks, describe response measures, and implement adaptation strategies.

Key Drivers of the Law




 Major Highlights in the Federal Decree Law 

 • Climate change adaptation and mitigation plans: The Ministry, with local authorities, will develop sectoral mitigation and adaptation plans to assess risks, set response measures and early warning systems, and implement necessary actions.

• Breaking down NDC targets: The decree mandates the approval and periodic review of NDCs, ensuring alignment with long-term emission reduction and adaptation commitments. 

 • GHG emission reduction and controls: Local authorities must monitor emissions using a GHG inventory and implement emission reduction strategies. A centralized electronic system will be used for measuring emissions, submitting data, and linking with other official systems.

• Incentives for GHG reduction: Companies using new technologies to cut emissions, like carbon offsets and trading, will receive government incentives to speed up low-carbon solutions across sectors.

Why Following Climate Laws Matters for Your Business 

This law isn’t just about compliance; it’s about enhancing your business opportunity. Companies must align with national and local climate action plans, track and report emissions, and meet sector-specific reduction targets. Businesses that look forward to sustainability today are not only positioned for regulatory compliance but also gain a competitive edge and build a resilient future.

How EHS Management Consultants Can Help 

At EHS Management Consultants, we help businesses navigate this evolving regulatory landscape. Our team of experts in ESG and climate change supports companies in complying with these climate laws while accelerating their journey toward sustainability. Whether you are just starting your sustainability journey or advancing your green initiatives, we act as a trusted partner every step of the way. 

Beyond compliance: Building a Greener Future

The Federal Decree-Law is a key climate law in the UAE, reflecting the nation’s commitment to a sustainable future. By actively pursuing sustainability and reducing carbon emissions, businesses not only comply with the law but also strengthen their competitive edge and demonstrate commitment to a greener future. Adopting sustainable practices can also be more cost-effective and enhance climate resilience. 

 “Building a sustainable future starts today, and being proactive in compliance is essential for success.”


 

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