1. Statutory Mandate Under Federal Decree-Law No. 11 of 2024
UAE Federal Decree-Law No. 11 of 2024 on the Reduction of Climate Change Effects (issued August 2024, entering into force on 30 May 2025) establishes the United Arab Emirates' binding federal legal framework for greenhouse gas emissions measurement, reporting, and verification (MRV) across public and private sector sources, including all commercial and financial free zones (such as ADGM, DIFC, JAFZA, and DMCC).
| UAE Regulatory / Utility Pillar | Governing Authority | Core Statutory Requirement | Primary Reference & Enforcement Mechanism |
|---|---|---|---|
| Federal Climate MRV & Record Retention | Ministry of Climate Change and Environment (MoCCAE) | Annual Scope 1 & 2 GHG measurement, National MRV Registry submission, and 5-year record retention | Federal Decree-Law No. 11 of 2024 (Arts. 6–9); administrative fines from AED 50,000 to AED 2,000,000 |
| National Carbon Credit Registry | MoCCAE (Cabinet Resolution No. 67 of 2024) | Mandatory registration for entities exceeding 0.5 MtCO2e/year Scope 1+2 and verified carbon credit trading | UAE National Register for Carbon Credits |
| Dubai Electricity Grid (DEWA) | Dubai Electricity and Water Authority (DEWA) | Location-based grid factor (0.4041 tCO2e/MWh 2023 baseline; 0.3833 tCO2e/MWh newer solar mix) and Shams Dubai net metering | DEWA vs. EWEC Grid Factors & Shams Dubai Guide |
| Listed & Financial Free-Zone Entities | SCA, ADX, DFM, ADGM FSRA, and DFSA | Mandatory annual ESG & climate disclosures for listed PJSCs and regulated financial entities | UAE ESG Reporting Guide: ADX, DFM, ADGM & DFSA |
2. Core Obligations for UAE Sources & Entities
Under Articles 6 through 9 of the Decree-Law, covered entities and emission sources are required to:
- Measure and Inventory GHG Emissions: Regularly measure direct and indirect operational emissions in accordance with methodologies and emission factors approved by the Ministry of Climate Change and Environment (MoCCAE) and competent Emirate-level authorities (such as the Environment Agency – Abu Dhabi and Dubai Supreme Council of Energy).
- Maintain Auditable Records for 5 Years: Retain primary activity data, utility invoices, fuel logs, meter calibration certificates, and verification records for a minimum of five (5) years from the date of submission.
- Adopt Emirate-Specific Grid Factors: When screening Scope 2 purchased electricity in Dubai, organizations reference the published DEWA Sustainability Report grid factor (
0.4041 tCO2e/MWhfor the 2023 operating baseline, with newer solar-integrated reports citing0.3833 tCO2e/MWh).
3. Worked UAE Commercial Facility Screening Example
For a commercial headquarters in Dubai consuming 120,000 kWh (120 MWh) of DEWA grid electricity during the 2023/2024 reporting baseline without retired UAE I-RECs:
- Location-Based Scope 2 Calculation:
120,000 kWh * 0.40410 kg CO2e/kWh = 48,492.00 kg CO2e(48.492 tCO2e), pinned to factor IDEF-UAE-DEWA-ELEC-LOC-KWH-2023. - Market-Based Scope 2 Treatment: If the entity retires
120 MWhof Dubai-vintage I-RECs from the Mohammed bin Rashid Al Maktoum Solar Park in the Evident registry on behalf of the facility, its Market-Based Scope 2 emissions are0.00 tCO2e, while Location-Based Scope 2 remains48.492 tCO2eunder dual reporting.