Bringing about quite a seismic shift in carbon accountability in the UAE, UAE’s landmark Decree Law No. 11 on Climate Reporting has successfully moved beyond ad hoc reporting to full-scope, verified carbon emissions tracking. The regulation mandates large companies to report their greenhouse gas emissions annually, marking a major step toward national climate accountability and corporate sustainability transparency. Here’s how organisations can successfully make this transition, and how Fitsol’s carbon management solutions are already playing a role in the UAE.
From Fragmented to Federated Reporting
Not only is GHG reporting mandatory, but the setting up of a systematic platform makes this decree stand out. Many companies, previously, used to rely on manual spreadsheets or limited Scope 1 and Scope 2 reporting systems. However, under the new mandate, public and private entities must adopt a structured, government-approved digital MRV (Measurement, Reporting & Verification) platform for emissions data. It is to be noted that enforcement carries serious consequences in the forms of fines ranging from AED 50,000 to AED 2 million, doubling for repeat violations, states the official government website.
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ESG Best Practices in 2025: What UAE Businesses Are Doing
In 2025, sustainability reporting in the UAE has become more structured and aligned with global ESG standards:
Leading companies in the UAE and Saudi Arabia are now aligning with IFRS Sustainability Disclosure Standards and disclosing full GHG inventories.
Publicly listed firms and major emitters must submit annual emissions reports and get them independently audited.
The UAE National Carbon Registry, launching in June 2025, requires companies to register Scope 1 and 2 emissions—with Scope 3 to follow—laying the groundwork for future carbon credit trading.
What Should Businesses Do: Strategic Steps for a Successful Transition to Full-Scope Carbon Measurement & Verification
Automate Data Collection
Manual tracking isn’t scalable. Move from spreadsheets to automated emissions monitoring systems that pull data directly from utilities, energy meters, and ERP platforms. This ensures accuracy, consistency, and audit-readiness, critical for meeting UAE Decree 11 compliance and future carbon disclosure regulations.
Expand to Full Scope (1, 2 & 3)
Start with Scope 1 (direct emissions) and Scope 2 (electricity use), then prepare to include Scope 3 supply chain emissions. While not yet mandated, Scope 3 reporting builds resilience, strengthens supplier engagement, and will likely become a requirement in future UAE climate regulations.
Adopt a Verified MRV Platform
Use an MRV system that meets global standards (IPCC, ISO 14064, and MoCCAE). The right platform will maintain 5+ years of verifiable emissions data, enable third-party access for assurance, and keep your company aligned with upcoming national and international carbon regulations.
Monitor Progress and Set Targets
Reporting is not a one-time activity. Track carbon emissions performance continuously, benchmark against your net-zero targets, and course-correct where needed. UAE regulations are expected to introduce carbon intensity-based targets, so getting ahead now will ease future regulatory compliance.
Prepare for Carbon Trading Opportunities
With the UAE’s National Carbon Registry launching in June 2025, companies with robust emissions data and reduction strategies will be better positioned to participate in carbon offset markets. This can create a new green revenue stream through tradable carbon credits from verified reductions.
Fitsol’s Role in the UAE Transition
Fitsol is already working with leading UAE enterprises to support this transition, helping them shift from piecemeal reporting to full-scope carbon accounting. We connect operations and suppliers, integrate real-time carbon dashboards across all emission scopes, and produce MoCCAE-compliant reports, making carbon compliance in the UAE both manageable and strategic.
As the UAE tightens verification, enforcement structures, and readies for compliance-driven carbon markets, Fitsol’s plug-and-play ESG platform is positioned to expand its presence in the region, empowering companies to become trailblazers, not just responders, in climate action.
The Business Imperative
This shift is not regulatory padding, it’s a gateway to long-term ESG competitiveness. Businesses embracing this transition will earn savings through energy optimization, gain better access to green finance and voluntary carbon markets, and improve climate credibility with stakeholders.
As the UAE enforces corporate decarbonization across sectors, early adopters will lead on climate innovation and business resilience.
The move from ad hoc carbon reporting to verified MRV platforms isn’t optional, it’s inevitable. But with the right strategy and the right partner, it can become a source of climate leadership and long-term value.
Schedule a live demo to see how Fitsol simplifies UAE Decree 11 compliance and enables enterprise decarbonization.
Citations
Government of United Arab Emirates: https://uaelegislation.gov.ae/en/legislations/2558