In a decisive stride towards environmental sustainability and global leadership in climate action, the United Arab Emirates (UAE) has introduced Federal Decree-Law No. (11) of 2024 on the Reduction of Climate Change Effects. Signed into law by President, this legislation underscores the country’s unwavering commitment to climate neutrality and sustainable development, positioning itself as a proactive global player in addressing climate change.
Overview and Intent
The law lays out a comprehensive legal framework to tackle the effects of climate change within the UAE. It defines roles and responsibilities, mechanisms for reducing greenhouse gas (GHG) emissions, and strategies for climate adaptation. Central to its vision is balancing economic development with environmental responsibility through innovation, collaboration, and accountability.
Key Objectives
The Decree-Law identifies five primary goals:
- Emission Management: Effectively curbing GHG emissions and actively contributing to international mitigation efforts.
- Ecosystem and Societal Resilience: Enhancing the adaptive capacity of economic sectors, infrastructure, and society.
- Promotion of Innovation and R&D: Leveraging modern technologies and public-private partnerships to drive climate solutions.
- Data Transparency: Establishing robust systems for emissions data sharing at national and international levels.
- Strategic Alignment: Ensuring all national and local plans synchronize with climate mitigation goals and economic diversification strategies
Scope and Applicability
The law applies to all emission sources across the UAE, including operations in free zones. It mandates public and private entities to align their activities with national climate goals, making this a truly nationwide endeavour.
Emission Reduction and Mitigation Strategies
Entities must adopt one or more of the following measures:
- Improving energy efficiency
- Transitioning to clean and renewable energy
- Preserving and enhancing natural carbon sinks
- Implementing Carbon Capture, Utilization, and Storage (CCUS)
- Substituting saturated fluorocarbons
- Participating in carbon offset programs
- Engaging in integrated waste management
These measures aim to help the country reach its climate neutrality targets through a diversified and technologically inclusive approach.
National Pathway to Climate Neutrality
The Cabinet, in collaboration with the Ministry of Climate Change and Environment, will establish annual emission reduction targets across sectors. These goals will align with international best practices while respecting national development priorities. Relevant authorities are tasked with designing sector-specific action plans to meet these targets.
Measurement, Reporting, and Verification (MRV)
A structured MRV system ensures transparency and accountability. Entities must:
- Measure and report their emissions regularly.
- Maintain emission records for at least five years.
- Reporting current and planned emission reduction measures along with expected outcomes.
The Ministry will oversee a centralized electronic system to consolidate and verify emissions data, ensuring coherence across all emirates and sectors.
Climate Adaptation Planning
To ensure the UAE’s resilience against climate-related risks, the law mandates the development of sector-specific adaptation plans. These plans focus on infrastructure, energy, environment, health, insurance, and any other sectors identified by the Ministry or competent authorities. Key aspects include:
- Risk Assessment: Identifying major climate-related threats specific to each sector.
- Response Measures: Establishing early warning systems and strategic actions to address identified risks.
- Plan Implementation: Executing adaptation strategies tailored to sectoral and local needs.
Authorities must report economic and non-economic damages caused by climate change and update the Ministry on the progress of these plans. This ensures alignment with international reporting obligations under the UNFCCC framework.
Role of Climate Science and Data
The law emphasizes evidence-based policy-making. Authorities must provide the Ministry with timely data, studies, and reports. This data-driven approach supports climate modelling, forecasting, and informed decision-making, both nationally and globally.
Institutional Frameworks and Incentives
The Cabinet may establish climate action boards and committees with representatives from public and private sectors. These bodies will monitor policy implementation and propose solutions.
To drive adoption, the law introduces incentive mechanisms, including:
- Carbon offset facilitation
- Emissions trading systems
- Shadow pricing of carbon
- Climate performance indicators for project assessment
Additionally, a National Carbon Credit Registry will be established to track emissions and carbon credits effectively.
International Engagement and Compliance
The UAE is aligning its domestic action with global obligations, including the Paris Agreement. It will:
- Approve and periodically review its Nationally Determined Contributions (NDCs)
- Submit detailed international climate reports
- Promote international cooperation to enhance climate resilience
Enforcement and Penalties
Compliance is mandatory, and violations carry significant consequences. Failure to report emissions can lead to fines ranging from AED 50,000 to AED 2,000,000. Repeat offenses within two years will attract double penalties. Additionally, judicial officers will be appointed to monitor adherence and issue administrative penalties.
Transition Period and Legal Clarity
Entities have one year from the law’s effective date to align with its provisions. The Cabinet may grant extensions where necessary. The law also supersedes any previous legislation inconsistent with its objectives.
Conclusion
Federal Decree-Law No. (11) of 2024 marks a transformative chapter in the UAE’s environmental policy. It balances stringent legal mandates with incentives and innovation, setting the stage for a greener, more resilient future. As the country gears up to become a global leader in climate action, this law ensures that sustainability is not just a goal—but a legal obligation.
