UAE: Climate Change Reduction Law Takes Effect

This legislation mandates comprehensive measures for managing greenhouse gas (GHG) emissions across all public and private sector entities, including those operating in free zones. Key provisions include:

1. a requirement to measure emissions, prepare an emissions inventory, and submit periodic reports on GHG emissions
2. implementing strategies to reduce emissions, aligning with government guidelines. These guidelines will be periodically updated to reflect national climate neutrality goals and economic priorities
3. maintaining records of emissions data for at least five years
4. encouraging businesses to participate in carbon offsetting initiatives

To ensure compliance, businesses must align their sustainability goals with sector-specific emission reduction targets. Businesses that have already integrated sustainability reporting frameworks will be better equipped to adapt to the new provisions.

To facilitate this transition , businesses should:

• Implement Robust Data Collection Systems: Consider what data should be collected, and how it will be measured. This data should also be regularly audited.
• Establish a Centralized Data Management System: Securely store and manage emissions data, regularly updating records to ensure they are accessible for review and reporting.

Non-compliant businesses are subject to fines.