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UAE

Federal Decree-Law on the Reduction of Climate Change Effects

Analysis of Federal Decree-Law on the Reduction of Climate Change Effects (Federal Decree-Law, ) — covering scope, key definitions, obligations, penalties, and interaction with other UAE legislation.

Legislation Details

  • Full Title: Federal Decree-Law on the Reduction of Climate Change Effects
  • Law Type: Federal Decree-Law
  • Law Number: [number] of 2024
  • Issued Date: 28 Aug 2024
  • Effective Date: 30 May 2025
  • Official Gazette: No. 782
  • Sector: Environment and Natural Resources
  • Status: Active
  • Number of Articles: 43
  • Chapters/Parts: 0
  • Amendments: 0

Summary

This Federal Decree-Law aims to manage greenhouse gas emissions within the UAE and ensure the country's effective contribution to international efforts to mitigate the impacts of climate change and achieve climate neutrality. It also seeks to strengthen the capacity of ecosystems, economic sectors, and society to adapt to the impacts of climate change. The law establishes a framework for climate change mitigation and adaptation, including requirements for emissions measurement, reporting, and verification, the development of climate action plans, and the utilization of incentives and international cooperation mechanisms. (Federal Decree-Law on the Reduction of Climate Change Effects, 2024) The law is significant for businesses and individuals in the UAE as it imposes obligations and requirements related to emissions reduction, adaptation planning, and climate data reporting. It also provides for penalties for non-compliance and establishes governance structures to oversee and enforce the law's provisions. The practical impact of this legislation is to drive the UAE's transition towards a low-carbon, climate-resilient economy and society. (Federal Decree-Law on the Reduction of Climate Change Effects, 2024)

What is the scope and purpose of this law?

The purpose of this Federal Decree-Law is to: (1) manage emissions within the UAE to ensure effective contribution to international efforts to mitigate climate change and achieve climate neutrality; (2) strengthen the capacity of ecosystems, economic sectors, and society to adapt to climate change impacts; (3) support innovation, research, and development in climate change mitigation and adaptation; (4) share climate data and support regional and international cooperation; and (5) align national and local plans with climate change goals and support sustainable development. The law applies to all sources of greenhouse gas emissions in the UAE, including free zones. (Federal Decree-Law on the Reduction of Climate Change Effects, 2024, Art. 2-3)

What are the key definitions under this law?

The law provides the following key definitions:

  • Climate Change: A change of climate which is attributed directly or indirectly to human activity that alters the composition of the global atmosphere and which is in addition to natural climate variability. (Federal Decree-Law on the Reduction of Climate Change Effects, 2024, Art. 1)
  • Greenhouse Gases (GHGs): Gases that contribute to the greenhouse effect and absorb and re-emit infrared radiation, including carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), and others. (Federal Decree-Law on the Reduction of Climate Change Effects, 2024, Art. 1)
  • Emissions: Greenhouse gases released into the atmosphere as a result of human activities. (Federal Decree-Law on the Reduction of Climate Change Effects, 2024, Art. 1)
  • Sinks: Any process, activity or mechanism which removes a greenhouse gas, an aerosol or a precursor of a greenhouse gas from the atmosphere. (Federal Decree-Law on the Reduction of Climate Change Effects, 2024, Art. 1)
  • Climate Change Mitigation: A human intervention that reduces the sources of GHG emissions and/or enhances the sinks. (Federal Decree-Law on the Reduction of Climate Change Effects, 2024, Art. 1)
  • Adaptation: The process of adjustment to actual or expected climate and its effects to moderate or avoid harm or to exploit beneficial opportunities. (Federal Decree-Law on the Reduction of Climate Change Effects, 2024, Art. 1)

What are the main obligations and requirements?

The key obligations and requirements under this law include: 1. Sources must contribute to reducing their greenhouse gas emissions to achieve climate neutrality through means such as improving energy efficiency, using clean energy, enhancing natural carbon sinks, carbon capture and storage, and carbon offsetting. (Federal Decree-Law on the Reduction of Climate Change Effects, 2024, Art. 4) 2. The Cabinet must determine annual emission reduction targets for all sectors to align with the national pathway to climate neutrality. (Federal Decree-Law on the Reduction of Climate Change Effects, 2024, Art. 5) 3. Sources must measure their emissions, prepare emissions inventories, and submit periodic reports to the Ministry and competent authorities. (Federal Decree-Law on the Reduction of Climate Change Effects, 2024, Art. 6) 4. Competent authorities must develop and implement climate change adaptation plans for key sectors. (Federal Decree-Law on the Reduction of Climate Change Effects, 2024, Art. 7) 5. The Ministry and competent authorities must provide incentives and establish carbon offsetting mechanisms to support emissions reduction efforts. (Federal Decree-Law on the Reduction of Climate Change Effects, 2024, Art. 10)

What licensing, registration, or approval requirements exist?

The legislation does not specify any licensing, registration, or approval requirements.

What rights and protections does this law provide?

The legislation does not explicitly outline any specific rights or protections granted under this law.

Which authorities or bodies are responsible for enforcement?

The key authorities and bodies responsible for enforcement and implementation of this law include: 1. The Ministry of Climate Change and Environment, which is responsible for issuing resolutions, verifying emissions data, collecting and analyzing emissions data, and establishing the National Carbon Credit Registry. (Federal Decree-Law on the Reduction of Climate Change Effects, 2024, Art. 4, 6, 10) 2. The competent local authorities in each emirate, including free zones, which are responsible for developing and implementing adaptation plans, coordinating with the Ministry, and enforcing the law's provisions. (Federal Decree-Law on the Reduction of Climate Change Effects, 2024, Art. 1, 7) 3. The Cabinet, which is responsible for determining annual emission reduction targets for all sectors. (Federal Decree-Law on the Reduction of Climate Change Effects, 2024, Art. 5) 4. Any boards or committees established by the Cabinet that are specialized in climate action and responsible for following up on and evaluating climate change policies. (Federal Decree-Law on the Reduction of Climate Change Effects, 2024, Art. 9)

What are the penalties for non-compliance?

The law specifies the following penalties for non-compliance: 1. Imprisonment for a period not exceeding one year and/or a fine not exceeding AED 1 million for any person who violates the provisions of the law or the resolutions issued in implementation thereof. (Federal Decree-Law on the Reduction of Climate Change Effects, 2024, Art. 15) 2. Doubling the penalty for repeating the same violation. (Federal Decree-Law on the Reduction of Climate Change Effects, 2024, Art. 16) 3. Administrative penalties, including fines, suspension of activity, or revocation of licenses, may be imposed by the competent authority. (Federal Decree-Law on the Reduction of Climate Change Effects, 2024, Art. 17)

What fees, charges, or financial provisions are specified?

The legislation does not specify any fees, charges, or other financial provisions.

What exemptions or exceptions apply?

The legislation does not outline any exemptions or exceptions to its scope or requirements.

How are disputes resolved under this law?

The legislation does not provide any details on dispute resolution mechanisms under this law.

What are the key deadlines and time limits?

The key deadlines and time limits specified in the law include: 1. Sources must maintain a record of measured emission quantities for a period of five years from the date of each analysis. (Federal Decree-Law on the Reduction of Climate Change Effects, 2024, Art. 6) 2. The law came into effect on 30 May 2025, 9 months after its issuance date of 28 Aug 2024. (Federal Decree-Law on the Reduction of Climate Change Effects, 2024, Art. 21)

How does this law interact with other UAE legislation?

The law references the following related UAE legislation: 1. The Constitution of the United Arab Emirates. (Federal Decree-Law on the Reduction of Climate Change Effects, 2024, Preamble) 2. Federal Law No. (1) of 1972, Concerning the Competences of Ministries and the Powers of Ministers, as amended. (Federal Decree-Law on the Reduction of Climate Change Effects, 2024, Preamble) 3. Federal Decree-Law No. (31) of 2021, Promulgating the Penal Code, as amended. (Federal Decree-Law on the Reduction of Climate Change Effects, 2024, Preamble)

When did this law come into effect?

This Federal Decree-Law came into effect on 30 May 2025, 9 months after its issuance date of 28 Aug 2024. (Federal Decree-Law on the Reduction of Climate Change Effects, 2024, Art. 21)

Source Documents

This article analyses Federal Decree-Law on the Reduction of Climate Change Effects 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.

Written by Sushant Shukla

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