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UAE · Climate Law & ESG · 2026

Carbon accounting software for companies in the UAE

The UAE Climate Law (Federal Decree-Law No. 11 of 2024) now makes greenhouse-gas measurement and reporting a legal obligation, with a key compliance deadline of 30 May 2026 — and SCA-listed companies on ADX and DFM already file mandatory ESG disclosures. CarbonTool gives UAE companies an audit-ready emissions inventory: Scope 1, 2 and 3 on one data backbone, aligned to the GHG Protocol and ISO 14064, with framework outputs for ISSB, GRI, CSRD and CDP, multi-entity consolidation and transparent pricing.

The short answer

Yes — sustainability and GHG reporting is now mandatory in the UAE. The UAE Climate Law (Federal Decree-Law No. 11 of 2024 on the Reduction of Climate Change Effects) came into force on 30 May 2025 and requires public and private entities across the Emirates — including free zones — to measure and report greenhouse-gas emissions, with a headline compliance deadline of 30 May 2026. Reporting runs through MOCCAE's national Monitoring, Reporting & Verification (MRV) system. Separately, the Securities and Commodities Authority (SCA) requires listed companies on the Abu Dhabi Securities Exchange (ADX) and Dubai Financial Market (DFM) to publish an annual ESG/sustainability report. To comply, companies need a defensible, auditable emissions inventory — CarbonTool builds exactly that, covering Scope 1, 2 and 3 with the framework outputs UAE rules expect.

Mandatory sustainability & GHG reporting requirements in the UAE

The UAE was the first country in the MENA region to enact a binding federal climate law. Obligations now sit on two main tracks — a nationwide GHG-reporting regime under the Climate Law, and ESG disclosure rules for listed companies — all set against the UAE's Net Zero by 2050 Strategic Initiative. The most important threads are below.

UAE Climate Law (Decree-Law 11/2024)

Federal Decree-Law No. 11 of 2024 on the Reduction of Climate Change Effects came into force on 30 May 2025. It obliges public and private entities — including free zones — to measure and report greenhouse-gas emissions and to support the UAE's national mitigation goals. The headline compliance deadline for in-scope entities is 30 May 2026.

MOCCAE MRV system

Reporting runs through the Ministry of Climate Change and Environment's national Monitoring, Reporting & Verification (MRV) framework and its Integrated Emissions Quantification Tool (accessible via mrv.ae), launched in late 2025. Emissions are quantified to GHG Protocol and ISO 14064 methodology before submission.

Large emitters & Cabinet decisions

A category of very large emitters — broadly those at or above 0.5 million tonnes CO2e of combined Scope 1 and 2 per year — carries heavier duties under accompanying Cabinet decisions, including registering with the National Carbon Credit Registry and obtaining third-party verification from a MOCCAE-approved verifier.

SCA ESG disclosure (ADX & DFM)

The Securities and Commodities Authority requires listed public joint-stock companies on the Abu Dhabi Securities Exchange (ADX) and Dubai Financial Market (DFM) to publish an annual sustainability/ESG report, typically within 90 days of financial year-end or before the AGM, drawing on GRI, SASB/TCFD-type metrics and, increasingly, the ISSB baseline.

Scope 1, 2 and 3

Mandatory measurement under the Climate Law currently centres on Scope 1 (direct) and Scope 2 (purchased energy) emissions, with Scope 3 (value-chain) anticipated to follow. For most UAE companies Scope 3 already dominates the footprint and is being requested by larger customers and listed parents now.

Net Zero 2050 & free zones

All of this sits under the UAE Net Zero by 2050 Strategic Initiative and the post-COP28 agenda. Note that some financial free zones (such as ADGM and DIFM) operate their own ESG disclosure frameworks alongside the federal regime, so an entity may face more than one set of expectations.

Implementing rules under the Climate Law are still being issued and refined through Cabinet decisions and MOCCAE guidance, and exchange ESG guidance continues to evolve toward the ISSB baseline. Treat the points above as a working summary and confirm the exact scope, thresholds and deadlines that apply to your entity before relying on them.

Who has to report — and what they must measure

The UAE Climate Law applies broadly. Rather than a single size threshold, it distinguishes between the general population of emitting entities and a category of very large emitters that carries extra obligations:

1

Broad application, including free zones

The Climate Law applies to governmental, public and private entities operating in the UAE — onshore and in free zones, across all sectors. There is no general size, turnover or employee carve-out: if your UAE operations generate emissions, you should assess your obligations.

2

General entities: measure and report

In-scope entities must establish a GHG emissions monitoring and reporting system, quantify Scope 1 and 2 emissions using approved methodology, and submit through the national MRV platform by the prescribed timelines, working toward the 30 May 2026 compliance deadline.

3

Large emitters (~0.5 MtCO2e+): extra duties

Entities at or above roughly 0.5 million tonnes CO2e (Scope 1 + 2) face additional obligations — registering with the National Carbon Credit Registry, preparing an ISO 14064-aligned inventory and obtaining accredited third-party verification. Registration milestones for large emitters began in mid-2025.

4

Listed companies: ESG disclosure too

If your company is listed on ADX or DFM, you also fall under SCA mandatory ESG reporting — a separate, parallel obligation to the Climate Law's GHG reporting, drawing on international standards and moving toward ISSB alignment.

5

Smaller companies & suppliers

The UAE has no EU-style "VSME" voluntary SME standard. Smaller entities below verification-heavy thresholds may have lighter or voluntary obligations under the Climate Law, but most are pulled into scope indirectly — through Scope 3 data requests from larger UAE customers, banks and listed groups preparing ISSB-aligned disclosures.

In practice that means most UAE businesses should be building a GHG inventory now — both to meet the Climate Law's 30 May 2026 deadline and to answer the growing wave of Scope 3 data requests from larger customers, banks and listed parent companies. See how the carbon accounting and reporting modules fit together.

A note on this guidance (2026)

This is general information for 2026, not legal or compliance advice. UAE climate and ESG rules are evolving — implementing regulations, thresholds, scopes and deadlines under Federal Decree-Law No. 11 of 2024 and SCA/exchange guidance can change. Confirm your specific obligations with a qualified legal or sustainability advisor before acting.

How to comply: why you need carbon accounting software

UAE reporting is no longer a spreadsheet exercise. The Climate Law's MRV system expects emissions quantified to recognised methodology, large emitters must obtain third-party verification, and SCA disclosure increasingly leans on the ISSB baseline — all of which demand figures that are traceable to their source. Carbon accounting software turns a regulatory burden into a repeatable process:

Build an auditable inventory

Capture Scope 1, 2 and 3 with every figure carrying its source, unit, emission factor and data-quality level — the audit trail third-party verifiers and assurance providers expect under the MRV system and ISO 14064.

Use recognised methodology

CarbonTool applies GHG Protocol and ISO 14064-aligned calculations from 200+ emission-source templates, so your numbers stand up to MOCCAE verification and investor scrutiny rather than relying on ad-hoc spreadsheet formulas.

Generate framework outputs

Structure data once and produce outputs for ISSB (IFRS S1/S2), GRI, CDP, PCAF and CSRD — covering both the UAE Climate Law GHG requirements and SCA ESG disclosure without duplicate data entry.

Tackle Scope 3 from spend

Map categorised procurement and ERP spend to Scope 3 categories with spend-based factors for a fast first estimate, then refine your largest suppliers with primary data via the supplier portal as Scope 3 expectations tighten.

Why CarbonTool for the UAE

CarbonTool is built for exactly the position UAE companies are in: a binding GHG-reporting deadline, ESG disclosure expectations on listed groups, and a Net Zero 2050 trajectory that will keep tightening. It gives Emirati businesses enterprise-grade framework depth without enterprise friction.

Framework coverage UAE rules expect

CSRD, VSME, GRI, CDP, ISSB (IFRS S1/S2) and PCAF from one data backbone — so the same inventory serves the Climate Law's MRV submission, SCA ESG disclosure and any group-level CSRD or ISSB reporting.

Multi-language reporting

Produce reports in multiple languages for boards, regulators and international stakeholders — useful for UAE groups operating across the Gulf, Europe and Asia.

Multi-entity consolidation

Consolidate emissions across subsidiaries, free-zone entities and cross-border operations into a single group inventory, with per-entity drill-down for local UAE reporting.

ERP & procurement integrations

Connect to your ERP and procurement systems to pull activity and spend data automatically, with custom connectors available where an off-the-shelf integration does not exist.

Self-serve or done-for-you

Choose self-serve with guided Pathfinder setup, a fully managed done-for-you service, or white-label delivery — matching how much in-house sustainability capacity your UAE team has.

Transparent pricing & global reach

Pricing is published upfront rather than quote-gated, figures can be tracked in AED, and CarbonTool supports companies across Romania, Europe, the UK, the Middle East, Asia and the Americas — one platform for a multinational group.

Whether you want to run it yourself or have it done for you, CarbonTool offers self-serve, managed and white-label delivery, and connects to your ERP and procurement systems — with custom connectors where you need them. Explore enterprise carbon accounting for multi-entity groups, or the CSRD software guide if your UAE entity reports into a European parent. Pricing is published upfront on the pricing page.

A global platform with UAE fit

CarbonTool supports companies across Romania, the wider European Union, the UK, the Middle East, Asia and the Americas — so a UAE group with cross-border operations consolidates everything in one place. Reporting can be produced in multiple languages, and figures can be tracked in AED alongside other currencies for multinational groups. The result: one auditable data backbone that satisfies the UAE Climate Law's MRV requirements and SCA ESG disclosure today, while remaining ready for ISSB (IFRS S1/S2), GRI, CDP, PCAF and CSRD as expectations broaden.

Got more questions?

Can't find what you're looking for? Check the FAQs below, or reach out and we'll get back to you within one business day.

Yes. The UAE Climate Law (Federal Decree-Law No. 11 of 2024 on the Reduction of Climate Change Effects) came into force on 30 May 2025 and requires public and private entities — including free zones — to measure and report greenhouse-gas emissions through MOCCAE's national MRV system, with a headline compliance deadline of 30 May 2026. Separately, listed companies on ADX and DFM must publish annual ESG/sustainability reports under SCA rules. Implementing regulations are still evolving, so confirm the specifics that apply to your entity.

Under the Climate Law, in-scope entities must establish a GHG monitoring and reporting system and report emissions (currently focused on Scope 1 and 2, calculated to GHG Protocol / ISO 14064 methodology) via the national MRV platform. Very large emitters — broadly at or above 0.5 million tonnes CO2e of combined Scope 1 and 2 per year — must also register with the National Carbon Credit Registry and obtain third-party verification. Listed companies additionally file SCA ESG disclosures drawing on GRI, SASB/TCFD-type metrics and, increasingly, the ISSB baseline.

Mandatory measurement under the Climate Law currently centres on Scope 1 and Scope 2, with Scope 3 (value-chain) emissions anticipated to be brought in over time rather than required of all entities immediately. In practice, however, Scope 3 is already being requested of UAE suppliers and subsidiaries by larger customers, banks and listed parent companies preparing ISSB-aligned disclosures — so building Scope 3 capability now is strongly advisable. Verify the current position for your sector before relying on it.

The UAE Climate Law took effect on 30 May 2025, with a headline compliance deadline of 30 May 2026 for in-scope entities. Large emitters faced earlier registration milestones with the National Carbon Credit Registry from mid-2025. SCA-listed companies on ADX and DFM generally file their annual ESG/sustainability report within 90 days of financial year-end or before the AGM, whichever is earlier. Because implementing rules are still being issued, confirm the exact dates for your entity.

Yes. Federal Decree-Law No. 11 of 2024 applies broadly to public and private entities operating in the UAE, including those in free zones, with no general size or turnover exemption. Some financial free zones such as ADGM and DIFM also run their own ESG disclosure frameworks, so a free-zone entity can face more than one set of expectations. Assess both the federal regime and any free-zone-specific rules that apply to you.

For UAE companies needing to meet the Climate Law's GHG reporting and SCA ESG disclosure, CarbonTool is a strong choice. It builds an auditable Scope 1, 2 and 3 inventory on GHG Protocol and ISO 14064 methodology, generates outputs for ISSB (IFRS S1/S2), GRI, CDP, PCAF and CSRD from one data backbone, consolidates multiple entities and free zones, integrates with ERP and procurement systems, tracks figures in AED, and offers self-serve, managed or white-label delivery with transparent pricing.

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