If your company has an office, a shop, a van or a small workshop in the UAE, a federal climate law applies to you. This article explains it in plain words, without legal vocabulary. It is general information, not legal advice.
What the law is
The law is Federal Decree-Law No. 11 of 2024 on the Reduction of Climate Change Effects. It entered into force on 30 May 2025. The Ministry of Climate Change and Environment (MOCCAE) runs the national system for measuring and reporting emissions.
The first compliance date was 30 May 2026. Law firm notes written before that date said the Ministry might extend it. The sources we read confirm no extension, so check MOCCAE for the current position before you plan your filing.
Does it apply to a small company?
In all likelihood, yes. The law covers public and private entities whose activities release greenhouse gases in the UAE, including free zone companies and state-owned companies. The sources we read describe no minimum size, turnover or sector exemption.
An office that pays an electricity bill causes greenhouse gas emissions at the power station. That is why the safe assumption is that you are in scope.
Free zone or mainland, it makes no difference
A company licensed in a free zone is not exempt. Law firm notes list free zones such as the Dubai International Financial Centre (DIFC) and the Abu Dhabi Global Market (ADGM) among the covered entities, alongside mainland companies in every emirate and public sector bodies. If your licence or lease sits in a free zone, plan to report in the same way.
What you have to do
Three duties matter for a small company: measure, report and keep records.
- Measure: add up the fuel you burn, the refrigerant gas you top up and the electricity you buy over one calendar year.
- Report: submit the figures once a year through the national reporting system run by MOCCAE. Law firm notes describe an online tool called the Integrated Emissions Quantification Tool (IEQT), live since October 2025.
- Keep records: keep your bills, meter readings and calculations for at least five years. The regulator can ask to see them.
Scope 1, Scope 2 and Scope 3 in one minute
Emissions are grouped into three scopes. The grouping comes from the Greenhouse Gas (GHG) Protocol, the most widely used accounting standard.
- Scope 1 is what you burn or leak yourself: diesel and petrol in company vehicles and generators, cooking or heating gas, and refrigerant that escapes from air conditioners.
- Scope 2 is the energy you buy, mainly electricity.
- Scope 3 is everything else in your value chain, such as water, waste, business flights, staff commuting and purchases.
The sources we read describe Scope 1 and Scope 2 reporting as mandatory. Scope 3 is not yet mandatory. Several sources expect it from 2027, but this is not confirmed in law. One firm adds that the exact reporting boundaries are still being set in implementing rules, so watch for updates.
The fines
Administrative fines run from AED 50,000 to AED 2,000,000 for failing to measure, report, keep an inventory or keep records. A repeat violation within two years can double the fine. Law firm notes also expect further penalties under a future Cabinet resolution.
Rented offices and shared meters
Many small companies rent space and never see the electricity bill, because the landlord pays it and recovers the cost through service charges. If that is your case, ask now for the consumption in kWh for your unit. Treat this as a data question to settle early, because it can take weeks to get an answer.
A simple plan for the next 30 days
- Choose one calendar year and list every electricity meter, vehicle, generator and air conditioner you own or rent.
- Collect 12 months of electricity bills, one bill per meter per month, plus fuel receipts and air conditioning service invoices.
- Write down anything missing and why. A labelled estimate is better than a silent gap.
- Decide who in your company will register on the national system and who will approve the figures.
- Put everything in one folder you can keep for at least five years.
Sources
Last checked: 2026-10-09
- PwC Middle East: UAE's Climate Change Law, Mandatory Emissions Reporting Obligations
- Ropes and Gray: Preparing for New UAE GHG Emissions Reporting and Reduction Requirements (April 2026)
- Baker Tilly UAE: Inside the UAE's New Climate Law
- 6clicks: UAE GHG reporting deadline 2026
- Zevero: UAE Climate Law, what businesses need to know
General information, not legal advice.
