Federal Decree-Law No. 11 of 2024 has been in force since 30 May 2025. The compliance period ran to 30 May 2026 and an extension is expected. Check MOCCAE for the latest date.Fines for not measuring, reporting or keeping records: AED 50,000 to AED 2,000,000. Repeat violations can double the fine.No minimum size: small, free zone and government entities are all covered. MOCCAE designates which sources report.Scope 3 is expected from 2027 but is not yet confirmed in law. DecarbOS can already prepare it for you.Keep emissions records for at least 5 years. DecarbOS keeps yours for 7 years in the UAE.Upload 12 months of bills from the same calendar year: electricity, cooling, fuel and refrigerant invoices.Bill tip: download the PDF from your utility app. If you photograph a bill, lay it flat in good light.Missing a month? You can enter the number by hand, estimate it, or mark it not available. The report labels every choice.Organisations emitting 0.5 million tonnes CO2e or more (Scope 1 + 2) need third-party verification.Physical climate risk reports describe heat, water, flood, dust and coastal hazards at your location using satellite and official data.Climate reports currently cover UAE sites only. We check the data for your location before you pay.Live air quality in Dubai: PM2.5 6.0 ug/m3 (Good), 2026-10-22 04:00 UTC. Source: OpenAQ.
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The UAE climate law in plain words for small companies

By Maria Helen, CEO of DecarbOS Intelligence · 2026-10-09 · 5 min read

SCOPE 1SCOPE 2SCOPE 35 YEARS

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.

One law firm notes that the decree does not publish a clear universal size threshold or a full exemption framework, and advises companies to assess whether they are covered rather than assume an exemption. We agree with that advice.

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.
DecarbOS Intelligence prepares Scope 1, 2 and 3 emissions reports and physical climate reports. It does no consulting. For legal questions, speak to a lawyer or to MOCCAE.

Sources

Last checked: 2026-10-09

General information, not legal advice.

More to read

How to read your electricity bill for Scope 2

Which number on an electricity bill counts for Scope 2, why the billing period matters, and why you need one bill per meter.

Refrigerants: the hidden Scope 1 in your air conditioning

Why a small leak from an air conditioner counts as Scope 1, what global warming potential means, and how to turn a service invoice into a number.

Physical climate risk for Gulf businesses: heat, humid heat, water, dust and floods

Five physical hazards that matter for a business in the UAE, what official and scientific sources say about each, and what to ask about your own site.

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