Legislation Details
- Full Title: Cabinet Resolution Concerning the National Register for Carbon Credits
- Law Type: Cabinet Resolution
- Law Number: No. (67) of 2024
- Issued Date: 10 Jun 2024
- Effective Date: 28 Dec 2024
- Official Gazette: No. 778
- Sector: Environment and Natural Resources
- Status: Active
- Number of Articles: 42
- Chapters/Parts: 0
- Amendments: 0
Summary
This Cabinet Resolution establishes the National Register for Carbon Credits in the UAE, which aims to reduce greenhouse gas (GHG) emissions and achieve climate neutrality by 2050. The Resolution regulates the registration, approval, trading, and retirement of carbon credits by entities with high carbon emissions as well as participating entities that voluntarily reduce their emissions. It sets out detailed requirements for monitoring, reporting, and verifying GHG emissions, and empowers the Ministry of Climate Change and Environment to manage the National Register. (Cabinet Resolution Concerning the National Register for Carbon Credits, 2024, Art. 1-2) The Resolution is significant for businesses and individuals in the UAE, as it introduces a comprehensive framework for carbon credits that will impact companies across various sectors. Entities with high carbon emissions must register with the National Register and meet specific criteria to have their carbon credits approved, while participating entities can voluntarily register to trade in carbon credits. This system aims to incentivize emissions reductions and support the UAE's transition to a low-carbon economy. (Cabinet Resolution Concerning the National Register for Carbon Credits, 2024, Art. 3)
What is the scope and purpose of this law?
The purpose of this Cabinet Resolution is to reduce greenhouse gas (GHG) emissions in the UAE and achieve climate neutrality by 2050. It establishes the National Register for Carbon Credits to regulate the registration, approval, trading, and retirement of carbon credits. (Cabinet Resolution Concerning the National Register for Carbon Credits, 2024, Art. 2) The Resolution applies to two main groups: 1) Entities with high carbon emissions, defined as those emitting 0.5 million metric tons or more of carbon dioxide equivalent annually, and 2) Participating entities that voluntarily reduce their emissions below 0.5 million metric tons and apply to be registered in the National Register. The Resolution also covers the trading platform for carbon credits. (Cabinet Resolution Concerning the National Register for Carbon Credits, 2024, Art. 3)
What are the key definitions under this law?
The Resolution provides the following key definitions:
- State: United Arab Emirates
- Ministry: The Ministry of Climate Change and Environment
- SCA: Securities and Commodities Authority
- Competent Authority: The authority concerned with climate change affairs in each Emirate
- Free Zone: Any existing or under-construction zone subject to federal or local legislation
- Financial Free Zone: A financial free zone established under Federal Law No. (8) of 2004
- Entities of Huge Carbon Emissions: Entities emitting 0.5 million metric tons or more of carbon dioxide equivalent annually
- Participating Entities: Entities that voluntarily reduce emissions below 0.5 million metric tons and apply to be registered
- Carbon Credits: A certificate representing the volume of carbon dioxide equivalent reduced
- Trading Platform for Carbon Credits: A platform allowing entities to trade carbon credits
- Carbon Retirement: Withdrawing carbon credits to abide by an emissions ceiling
- Carbon Credits Trading: Buying, selling, withdrawing, and retiring carbon credits
(Cabinet Resolution Concerning the National Register for Carbon Credits, 2024, Art. 1)
What are the main obligations and requirements?
The main obligations and requirements under this Resolution are: 1. Entities with high carbon emissions (0.5 million metric tons or more) must register with the National Register for Carbon Credits and fulfill certain requirements to have their carbon credits approved. (Cabinet Resolution Concerning the National Register for Carbon Credits, 2024, Art. 6) 2. Participating entities that voluntarily reduce emissions below 0.5 million metric tons can also register with the National Register and must meet the same requirements as entities with high emissions. (Cabinet Resolution Concerning the National Register for Carbon Credits, 2024, Art. 6) 3. All registered entities must have a monitoring, reporting, and verification system for their greenhouse gas emissions, following specific guidelines and standards. (Cabinet Resolution Concerning the National Register for Carbon Credits, 2024, Art. 4) 4. Registered entities must provide various documents and data to the Ministry, including their commercial/industrial license, emissions reduction activities, and payment of approval fees. (Cabinet Resolution Concerning the National Register for Carbon Credits, 2024, Art. 6) 5. Registered entities must ensure that their carbon credits meet the requirements of Article 6 of the Paris Agreement, including being real, measurable, approved, and continuous. (Cabinet Resolution Concerning the National Register for Carbon Credits, 2024, Art. 6)
What licensing, registration, or approval requirements exist?
The key licensing, registration, and approval requirements under this Resolution are: 1. Entities with high carbon emissions (0.5 million metric tons or more) must register with the National Register for Carbon Credits and provide a valid commercial/industrial license, basic data about their facilities and emissions reduction activities, and any other documents required by the Ministry. (Cabinet Resolution Concerning the National Register for Carbon Credits, 2024, Art. 6) 2. Participating entities that voluntarily reduce emissions below 0.5 million metric tons can also register with the National Register and must meet the same requirements as entities with high emissions. (Cabinet Resolution Concerning the National Register for Carbon Credits, 2024, Art. 6) 3. Registered entities must obtain an approved certificate for their carbon reduction activities from a Ministry-approved verification agency. (Cabinet Resolution Concerning the National Register for Carbon Credits, 2024, Art. 6) 4. Registered entities must pay a fee for the approval of their carbon credits in the National Register. (Cabinet Resolution Concerning the National Register for Carbon Credits, 2024, Art. 6) The Ministry is responsible for establishing and managing the National Register for Carbon Credits, and may appoint an entity to oversee its operations. (Cabinet Resolution Concerning the National Register for Carbon Credits, 2024, Art. 5)
Which authorities or bodies are responsible for enforcement?
The key authorities and bodies responsible for enforcement under this Resolution are: 1. The Ministry of Climate Change and Environment is responsible for establishing and managing the National Register for Carbon Credits. The Ministry may appoint an entity to manage and maintain the National Register. (Cabinet Resolution Concerning the National Register for Carbon Credits, 2024, Art. 5) 2. The Competent Authority in each Emirate, which is the authority concerned with climate change affairs, is involved in the application of this Resolution. (Cabinet Resolution Concerning the National Register for Carbon Credits, 2024, Art. 1) 3. The Securities and Commodities Authority (SCA) is mentioned in the Resolution, indicating its involvement in the regulation of carbon credits trading and related financial activities. (Cabinet Resolution Concerning the National Register for Carbon Credits, 2024, Art. 1) 4. Verification agencies approved by the Ministry are responsible for auditing the reports of greenhouse gas emissions reduction and issuing verification certificates. (Cabinet Resolution Concerning the National Register for Carbon Credits, 2024, Art. 4) The Resolution does not specify any other authorities or bodies responsible for enforcement.
What are the penalties for non-compliance?
The Resolution does not specify any penalties for non-compliance. It only states that "Violations and Administrative Penalties" will be addressed in Article 12, but the text does not provide any details on the actual penalties. (Cabinet Resolution Concerning the National Register for Carbon Credits, 2024, Art. 12)
What fees, charges, or financial provisions are specified?
The only financial provision mentioned in the Resolution is the requirement for registered entities to pay a fee for the approval of their carbon credits in the National Register for Carbon Credits. (Cabinet Resolution Concerning the National Register for Carbon Credits, 2024, Art. 6) The Resolution does not specify the amount of this fee or any other fees, charges, or financial thresholds.
What exemptions or exceptions apply?
The Resolution does not mention any exemptions or exceptions to its scope of application. It applies to entities with high carbon emissions (0.5 million metric tons or more) and participating entities that voluntarily reduce emissions below that threshold. (Cabinet Resolution Concerning the National Register for Carbon Credits, 2024, Art. 3)
How does this law interact with other UAE legislation?
The Resolution references the following UAE laws: - The Constitution - Federal Law No. (1) of 1972 Concerning the Competences of Ministries and the Powers of Ministers, as amended - Federal Law No. (24) of 1999 Concerning the Protection and Development of the Environment and the amendments thereto - Federal Law No. (4) of 2000 Concerning the UAE Securities and Commodities Authority (SCA), and amendments thereof - Federal Law No. (8) of 2004 concerning the Financial Free Zones (Cabinet Resolution Concerning the National Register for Carbon Credits, 2024, Preamble) The Resolution does not specify how it interacts with or amends these other laws.
When did this law come into effect?
The Cabinet Resolution Concerning the National Register for Carbon Credits was issued on 10 June 2024 and will come into effect on 28 December 2024, as stated in the Effective Date. (Cabinet Resolution Concerning the National Register for Carbon Credits, 2024, Issued Date and Effective Date) The Resolution was published in the Official Gazette No. 778 on 28 June 2024. (Cabinet Resolution Concerning the National Register for Carbon Credits, 2024, Official Gazette No.) The Resolution does not mention any transitional provisions.
Source Documents
This article analyses Cabinet Resolution Concerning the National Register for Carbon Credits for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.