UAE’s new climate law – Reduction of Climate Change Effects
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The United Arab Emirates has taken its next significant step towards environmental sustainability with the enactment of Federal Decree-Law No. 11 of 2024 on the Reduction of Climate Change Effects. This comprehensive legal framework, set to take effect on May 30, 2025, reinforces the UAE’s commitment to addressing climate change through strategic planning, emission reductions, and international cooperation.
What are the objectives?
The law sets out a clear and ambitious agenda to combat climate change, structured around five key objectives:
- Mitigation of Climate Change: Implementing nationwide strategies to reduce greenhouse gas emissions and enhance carbon sequestration, helping the UAE transition towards a low-carbon economy.
- Pathway to Climate Neutrality: Establishing a roadmap that aligns with the UAE’s commitment to achieving net-zero emissions in accordance with global climate agreements such as the Paris Agreement.
- Adaptation and Resilience: Creating and enforcing climate change adaptation plans that protect natural ecosystems, infrastructure, and communities from the adverse effects of global warming.
- Enhancement of Climate Data and Science: Strengthening the collection, analysis, and dissemination of climate-related data to support informed policymaking and decision-making.
- Strengthening International Cooperation: Engaging in regional and global collaborations to address climate change challenges effectively through knowledge exchange and technological advancements.
What is the implementation framework?
To ensure the effective implementation, the UAE government has outlined several mechanisms including:
- Climate Action Boards and Committees: Regulatory bodies will be established to oversee the execution of climate-related initiatives, ensuring compliance with the law’s provisions.
- Carbon Offsetting and Incentive Programs: Companies and organisations will be encouraged to participate in carbon offsetting/carbon credit purchasing programs and sustainable business practices.
- Monitoring and Reporting Requirements: Entities will be required to measure, report, and verify their greenhouse gas emissions under standardised frameworks, ensuring transparency and accountability.
Application rates and frequency of biochar application
Biochar application at high rates results in increased plant growth due to improved soil water and nutrient supply. Low amounts of biochar application have less visible or no growth impacts on plant species, whilst excessively higher doses have a limiting effect on plant growth.
Studies in Indonesia have shown that the application of about 9g of cocoa pod husk (CPH) biochar kg-1 soil, which is equivalent to about 20 tons of CPH biochar ha-1, significantly improved soil properties and the growth of cocoa seedlings.
There is a need to conduct more research in determining the optimum application rate of biochar for cocoa seedling production in Ghana, as the effect of biochar application varies with the soil type.
The frequency of biochar application will depend on the specific needs of the crop and soil. Generally, biochar can be applied at a rate of 10-20 tons per ha-1 and may be reapplied every 2-5 years as needed. The optimal application rate and frequency of application will vary depending on factors such as soil type, biochar type, and climate. This may require some experimentation to determine the best option for soils in cocoa-growing areas of Ghana.
Penalties for non-compliance
The Decree-Law includes specific provisions regarding enforcement and penalties. Articles 15 through 17 outline the consequences for non-compliance, which may include administrative fines, operational restrictions, and additional corrective measures.
All businesses will need to comply, non-compliance could result in penalties ranging from AED 50,000 to AED 2,000,000, and this can be doubled in case of repeated non-compliance within two years. The fines will be doubled in the case of repeated non-compliance within a two-year period.
Conclusion
Federal Decree-Law No. 11 of 2024 represents a crucial milestone in the UAE’s sustainability journey. With a structured approach to emission reduction, climate adaptation, and international cooperation, the country is positioning itself at the forefront of climate action.
Local authorities in the UAE, including those in free zones, will enforce strict standards for emission monitoring, reporting, and verification (MRV). A centralised electronic system will track emissions data, promoting transparency and accountability.
To comply with new regulations, businesses must align with national and local climate action plans, particularly in emission accounting, monitoring, verification, and reporting, while adhering to sector-specific emission reduction targets. Companies that have already integrated sustainability frameworks and decarbonisation strategies will be well-positioned for a smooth transition.
For more details on the specific provisions of the law, we encourage you to review the official legislation on the UAE Government’s legislation portal.
How The Carbon Collective Company can help:
Our team of sustainability, ESG and climate change experts have the knowledge and expertise to support businesses in navigating the evolving legislative landscape. We’ll not only ensure that you comply with the new laws and regulations but also support your business in kick-starting or accelerating your sustainability journey, depending on which stage you’re at. So whether you’re at the beginning of your sustainability journey or you’ve already begun, we’re here to provide the additional support you may require and guide you throughout your journey.
Supporting services include:
Materiality assessment: We identify the ESG issues and opportunities most relevant to a company and its stakeholders. We help the organisation align strategy, manage risks, and enhance transparency by integrating key issues into decision-making and sustainability reporting.
Carbon footprint calculation: We measure the total greenhouse gas (GHG) emissions produced directly and indirectly by your organisation, identifying emission sources, enabling businesses reduce their environmental impact through sustainable practices and carbon reduction strategies.
Sustainability strategy development: We craft a structured plan to integrate ESG principles into your business operations. This involves setting sustainability goals, identifying risks and opportunities, engaging stakeholders, and implementing initiatives to drive long-term value while minimising negative environmental and social impacts.
Sustainability reporting: We work with you to create a report that accurately communicates your ESG data, according to your desired frameworks (E.g. GRI, SASB). We ensure that your report is impactful and resonates with your stakeholders, investors and customers.
Peer benchmarking: We’ll evaluate publicly available data (ESG disclosures and comparing performance metrics) against industry leaders and selected peers. This process will provide you insights on where to focus your efforts for further improvement.
Carbon credits: We work with you in purchasing carbon credits and I-RECs to offset your residual emissions that haven’t been reduced yet with your ongoing reduction efforts. Fulfilling the immediate offset requirements for your business, allowing you to continue operating sustainably.
To find out more about the new laws and how to navigate them
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