DO NOT RISK PENALTIES – Time to get your Greenhouse Gas (GHG) Report available
Greenhouse gases (GHG) are heat-trapping gases such as carbon dioxide (CO₂), methane (CH₄), and nitrous oxide (N₂O), primarily generated from energy use, industrial processes, transport, and waste. Measuring and managing these emissions is critical to addressing climate change.
To strengthen climate governance and accelerate progress toward Net Zero 2050, the United Arab Emirates introduced Federal Decree Law No. 11 of 2024, establishing a mandatory framework for GHG measurement, reporting, and reduction across public and private sectors, including free zones.
What does the law require?
- Mandatory GHG Reporting: All in-scope entities must measure and report their emissions using methodologies approved by the Ministry of Climate Change and Environment (MOCCAE).
• Monitoring, Reporting & Verification (MRV): Companies must implement systems to track emissions, with mandatory reporting of Scope 1 and Scope 2, maintain records, and ensure data accuracy and verification.
• Reporting & National Registry: Emissions data must be submitted periodically and integrated into national inventories or registries.
• Record Keeping & Transparency: Businesses are required to maintain emissions data records (e.g., multi-year tracking) for regulatory review and audit.
• Emission Reduction & Strategy: Organizations must develop decarbonization plans aligned with national targets such as Net Zero 2050.
• Climate Risk & Adaptation: Companies are also expected to assess climate risks and implement mitigation and adaptation measures.
Why it matters?
This Decree-Law shifts GHG reporting from a voluntary ESG initiative to a legal compliance requirement, with enforcement, oversight, and penalties for non-compliance. It applies broadly across industries, including free zone entities, reinforcing the UAE’s commitment to global climate goals.
The legislation also establishes financial penalties ranging from AED 50,000 to AED 2 million for non‑compliance. Companies that act now, stay ahead; those that don’t, risk penalties and operational pressure as enforcement ramps up. For businesses, this is not just about compliance; it’s a strategic opportunity to improve efficiency, enhance ESG credentials, and contribute to a low-carbon economy.
Now is the time to act – establish your GHG inventory, implement robust reporting systems, and align with regulatory expectations.


