UAE business will track and report carbon emissions

Firms that produce 500,000 tons/year or more must participate

The United Arab Emirates will require companies to monitor and report their emissions in an effort to reach a target to become carbon neutral by 2050.

The Environment Agency — Abu Dhabi (EAD) has unveiled a measurement, reporting, and verification (MRV) programme to standardize and strengthen the tracking of greenhouse gas (GHG) emissions in the emirate, aligning with global climate best practices.

All companies with emissions equivalent to 500,000 tons or more of carbon dioxide per year are required to participate, according to legislation that comes into force on December 28.

EAD’s secretary-general, Dr Shaikha Al Dhaheri, emphasised the programme’s importance, stating, «Transparent data is essential for assessing climate policies, such as carbon pricing mechanisms, and supports Abu Dhabi’s commitment to reduce carbon emissions by 22 per cent by 2027 and contribute to the emirate’s continued sustainable economic prosperity. Through this journey, we are keen to proactively take the necessary steps as part of the national pathways towards Net Zero by 2050.»

The UAE, which hosted the United Nations’ COP climate summit last year, is the first Middle Eastern country to force companies to measure their emissions, reflecting its aim to be a regional leader in tackling climate change. That may pave the way for implementing a system to penalize polluters with an EU-style cap-and-trade system.

Even so, UAE policymakers worry that forcing companies to do too much to address their emissions will encourage them to relocate to neighboring countries that don’t have such requirements.