Marking a major milestone in climate change, on May 30, 2025, the UAE activated Federal Decree‑Law No. 11 of 2024. This law formally mandates companies to measure, report, and reduce their greenhouse gas emissions. Businesses must now track their carbon footprint using a centralized system and meet annual targets set by the government. This law aims to hold companies accountable and support the UAE’s goal of becoming net-zero by 2050. For corporate players in the UAE and wider MENA, this signals the start of a new compliance era—one in which carbon accounting is both non-negotiable and potentially punitive.
Strategic Relevance
Cutting emissions is no longer optional when it comes to companies in the UAE. It is the compliance that this decree entails that helps to convert global climate commitments—Paris Agreement and net-zero by 2050—into UAE law. Not only does it assign clear roles and timelines for both public and private sectors, it makes previously voluntary, emissions measurement and reduction mandatory, aligning with evolving investor, stakeholder, and ESG standards.
This system works on a well-formulated plan. A sophisticated electronic MRV (Measurement, Reporting, Verification) system is all set to be deployed by the Ministry of Climate Change and Environment in coordination with local authorities. This will ensure accountable and auditable emissions data. The official government website states that entities will be required to archive five years of data and meet annual, sector-specific emission targets set by Cabinet resolution.
What Makes This Strategic Today?
The decree achieves several strategic milestones. This landmark decision mandates MRV across industries, including high-emission sectors such as energy and manufacturing. This decision clearly positions the UAE as a global leader in climate governance. Not only does it expect its companies to report their carbon, it also enforces accountability, through penalties and public reporting for non-compliance. The law also enablesadaptive planning, with sectoral climate risk plans involving municipalities, free zones, and companies. This integration of emissions policy with economic growth is what supports the UAE’s broader Net Zero by 2050 Strategic Initiative.
What Does It Mean for Businesses
Businesses operating in the UAE will now be expected to change some aspects of your running, making you more climate-friendly.
MRV compliance: Companies will be expected to regularly measure GHG emissions, maintain inventories, report through the centralized MRV system, and retain five years of records.
Sector targets: Annual reduction targets would be sent out to every sector. These will be expected to follow approved mitigation/adaptation programs.
Transparency: Emission data becomes visible across stakeholders, accelerating accountability and ESG alignment.
Enforcement: Non-compliance could lead to material fines and non-compliance can potentially impact your reputational risk.
Strategic Implications for B2B
The timing of this law is critical, making it highly significant in the current global policy landscape. is critical. As UAE firms engage with global investors and prepare for carbon border mechanisms such as the EU CBAM, robust data accuracy and auditability are essential. Early compliance positions businesses as preferred partners in international supply chains while avoiding enforcement risks.
Where Does Fitsol Fit In?
Fitsol is expanding to the UAE, bringing its AI-powered carbon management solutions to one of MENA’s fastest-growing sustainability markets. As climate regulations tighten, Fitsol empowers businesses to stay compliant and lead the low-carbon transition. Fitsol’s AI-powered carbon SaaS aligns seamlessly with the new regulatory landscape. Here is what we can offer:
Automated MRV systems matching UAE’s electronic standards
Emissions data storage and retrieval aligned with five-year retention rules
Sector-specific reduction tracking enabling strategic compliance
Audit-ready reporting for regulators and global ESG frameworks
As the Federal Decree‑Law No. 11 of 2024 transforms climate ambition into law, UAE firms must now measure, report, and reduce emissions—or face consequences. Those who embed robust carbon governance will gain market trust, compliance readiness, and competitive advantage.
Citations:
Emirates News Agency (WAM): https://www.wam.ae/en/details/1395303236179
UAE MOCCAE Official Website: https://www.moccae.gov.ae/en/about-ministry/about-the-ministry.aspx