UAE Climate Law and ESG Compliance: Federal Decree-Law No. 11 Implementation

Federal Decree-Law No. 11 of 2024 on the Reduction of Climate Change Effects marks a historic shift in the UAE’s regulatory approach to climate action. Effective 30 May 2025 with full compliance required by 30 May 2026, this law mandates that all public and private entities—regardless of size, sector, or jurisdiction (including free zones)—measure, report, and actively reduce their greenhouse gas emissions. Unlike previous voluntary ESG frameworks, this is legally binding compliance with severe penalties: AED 50,000 to AED 2,000,000 for non-compliance, doubling to AED 4,000,000 for repeat violations within two years.