UAE Federal Climate Law mandates emissions tracking with penalties up to AED 2m
The UAE's Federal Climate Law (Decree-Law No. 11 of 2024) mandates emissions tracking and reporting, and non-compliance penalties range from AED 50,000 to AED 2,000,000, doubling on repeat offences.
The analysis — automated & source-checked
- Applies to
- Corporate · UAE
- What to do
- Corporations operating in the UAE and GCC must establish ESG governance structures and emissions tracking systems to comply with the Federal Climate Law and sector-specific disclosure mandates. Listed companies must report ESG metrics as part of annual filings.
The regulatory landscape across the Gulf Cooperation Council is shifting decisively. Between 2024 and 2026, every GCC member state has introduced or enforced ESG disclosure requirements. What was once voluntary best practice is now a compliance obligation with specific deadlines and financial penalties.
In the UAE, ESG reporting is mandatory for companies listed on the Dubai Financial Market and Abu Dhabi Securities Exchange. The Federal Climate Law (Decree-Law No. 11 of 2024) mandates emissions tracking and reporting, with non-compliance penalties ranging from AED 50,000 to AED 2,000,000, doubling on repeat offences.
In June 2024, the UAE Sustainable Finance Working Group launched its Principles for Sustainability-Related Disclosures, establishing minimum expectations for financial institutions. Across the GCC, similar mandates have taken effect: Bahrain's Central Bank issued mandatory requirements in 2024, Oman's Muscat Stock Exchange achieved 100% compliance following a mid-2025 mandate, and Qatar converted guidance into binding rules aligned with international standards.
Source
Reported by: BSA Ahmad Bin Hezeem 30 Sept 2026 Read the original ↗ More from BSA Ahmad Bin Hezeem →
Quick answers
What do I need to do?
Corporations operating in the UAE and GCC must establish ESG governance structures and emissions tracking systems to comply with the Federal Climate Law and sector-specific disclosure mandates. Listed companies must report ESG metrics as part of annual filings.
Who reported this?
BSA Ahmad Bin Hezeem (UAE).
When was it announced?
30 Sept 2026.
Where can I read the original?
Read the original at BSA Ahmad Bin Hezeem: https://bsalaw.com/insight/the-legal-case-for-esg-why-uae-and-gcc-corporations-must-act-now/
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