Federal Decree-Law No. (11) of 2024
On the Reduction of Climate Change Effects
The UAE's landmark climate legislation makes the country the first in the MENA region to establish a legally binding framework for greenhouse gas reporting, reduction planning, and third-party verification across all business sectors.
What is Federal Decree-Law No. (11) of 2024?
Federal Decree-Law No. (11) of 2024 was signed by UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan on 28 August 2024 and entered into force on 30 May 2025. It is the primary legal instrument giving effect to the UAE's Net Zero by 2050 Strategic Initiative at the corporate level.
The law establishes a mandatory national framework for measuring, reporting, verifying, and reducing greenhouse gas (GHG) emissions. It applies without exception to all legal entities operating in the UAE — including companies registered in free zones such as JAFZA, DMCC, and RAKEZ — and covers public sector bodies, state-owned enterprises, and private businesses alike.
Entities are required to design and maintain a GHG inventory aligned with internationally recognised methodologies — specifically the GHG Protocol Corporate Standard and ISO 14064-1:2018 — using UAE-specific emission factors for grid electricity. Annual emissions reports must be submitted through MOCCAE's Integrated Emissions Quantification Tool (IEQT), supported by independent verification from a MOCCAE-accredited third-party auditor.
Non-compliance carries administrative fines of AED 50,000 to AED 2,000,000 per offense, with repeat offenses within two years attracting doubled penalties. Additional sanctions include permit suspension, restrictions on business activities, and exclusion from UAE government procurement programmes.
What the Binding UAE Federal Law requires
Mandatory GHG Inventory
All covered entities must establish, maintain, and annually update a documented greenhouse gas inventory covering Scope 1 (direct emissions), Scope 2 (purchased energy), and material Scope 3 (value chain) emissions where applicable.
Annual Reporting via IEQT
Entities must submit annual emissions reports to MOCCAE through the Integrated Emissions Quantification Tool (IEQT) — the official national MRV platform. Reports must include supporting documentation and emission factor sources.
Methodological Alignment
Emissions quantification must follow the GHG Protocol Corporate Accounting and Reporting Standard and ISO 14064-1:2018, with UAE-specific emission factors applied for grid electricity. Deviations must be justified and approved.
Third-Party Verification
Independent verification by a MOCCAE-accredited verifier is mandatory prior to each annual submission. Verifiers assess data quality, methodology compliance, and reporting accuracy — issuing a formal verification statement.
GHG Reduction Plans
Entities must develop and submit credible greenhouse gas reduction plans with measurable, time-bound targets that contribute to the national goal of a 47% GHG reduction by 2035 relative to the 2019 baseline.
Record Retention — 5 Years
All supporting data, activity records, emission factor documentation, calculations, and verification reports must be retained for a minimum of five years and made available to MOCCAE upon request.
Climate Risk Disclosure
Entities must assess and disclose material climate-related financial risks — both physical risks (extreme weather, sea level rise) and transition risks (regulatory change, carbon pricing, market shifts).
NRCC Registration for High Emitters
High-Carbon Emitting Entities (HCEEs) emitting 500,000 tCO₂e or more annually from combined Scope 1 and Scope 2 sources were required to register with the National Registry of Carbon Credits (NRCC) by 28 June 2025.
Who must comply
Key dates
Federal Decree-Law No. (11) of 2024 signed by UAE President.
Law formally entered into force. All UAE entities are now legally subject to its requirements.
NRCC registration deadline for High-Carbon Emitting Entities (HCEEs) emitting ≥500,000 tCO₂e/year.
MOCCAE's Integrated Emissions Quantification Tool (IEQT) officially launched at GITEX Global 2025.
Full compliance deadline: all designated entities must have submitted verified annual GHG reports via IEQT.
Annual reporting cycle continues. Non-compliance enforcement and penalty proceedings may begin after the May 2026 deadline.
Cost of non-compliance
First violation of Decree-Law
AED 50,000 – AED 2,000,000
Repeat violation (within 2 years)
Doubled — up to AED 4,000,000
NRCC Resolution breach — 1st offense
AED 500,000
NRCC Resolution breach — 2nd offense
AED 1,000,000
NRCC Resolution breach — 3rd offense
AED 2,000,000
Additional regulatory violations
AED 100,000 – AED 300,000
Non-monetary sanctions
Permit suspension · Activity restrictions · Government procurement exclusion
Official Source Document
The full text of Federal Decree-Law No. (11) of 2024 is published on the UAE Legislation Portal. The document is available in Arabic (official) and English (translation) and covers all articles, definitions, obligations, and penalty provisions in detail.
We make compliance straightforward.
Most UAE businesses don't have an in-house sustainability team. twodegree acts as your technical partner — handling every step from emissions measurement to verified submission.
Book Free AssessmentWe conduct a full assessment of your obligations under Federal Decree-Law No. (11) of 2024 — identifying your entity type, emission sources, and reporting tier.
We design and build your GHG inventory to the methodological standards mandated by the law — GHG Protocol and ISO 14064-1 — using UAE-specific emission factors.
We prepare and file your annual emissions report through MOCCAE's IEQT platform on your behalf, managing all technical documentation requirements.
We coordinate your mandatory third-party verification with a MOCCAE-accredited verifier, preparing your evidence vault to withstand audit scrutiny.
We develop your GHG reduction plan with measurable targets aligned to the national 47% reduction goal, with practical decarbonisation pathways your business can execute.
We maintain your 5-year evidence archive in a timestamped, audit-ready Evidence Vault so you are always prepared for regulatory inspection.