UAE Cabinet Resolution No. (67) of 2024: Establishing the National Register for Carbon Credits

The UAE Cabinet Resolution No. (67) of 2024 introduces a comprehensive framework for regulating greenhouse gas (GHG) emissions through the establishment of a National Register for Carbon Credits. This legislation aims to support the UAE’s ambitious goal of achieving climate neutrality by 2050. Below is a summary of its scope, applicability, requirements, and deadlines.

Scope and Applicability

This Resolution applies to entities operating in the UAE, including free zones and financial free zones. Entities fall into two primary categories:

  1. Entities of Huge Carbon Emissions:

    • Emit 0.5 million metric tons or more of CO₂ equivalent annually (Scope 1 and 2 emissions).

    • Required to register in the National Register for Carbon Credits and monitor, report, and verify their emissions.

  2. Participating Entities:

    • Emit less than 0.5 million metric tons of CO₂ equivalent annually.

    • Voluntarily register in the National Register to generate or trade carbon credits.

The scope also extends to carbon credit trading platforms and provisions for the integration of additional sectors or revised thresholds upon future resolutions.

Key Requirements for Entities

  1. Monitoring, Reporting, and Verification (MRV):

    • Use MRV systems aligned with the Greenhouse Gas Inventory Protocol and international standards (e.g., ISO 14065, 14064). Zeroe can help you with this.

    • Submit annual GHG emissions reports to the Ministry of Climate Change and Environment.

  2. Registration and Documentation:

    • Submit licenses, emission data, and reduction strategies to the National Register.

    • Provide verification certificates for carbon reductions issued by approved agencies.

  3. Carbon Credits Trading:

    • Entities may trade approved carbon credits on licensed platforms.

    • Carbon credits must align with requirements under Article 6 of the Paris Agreement, ensuring real, measurable, and verifiable reductions.

  4. Compliance with Emission Reduction Targets:

    • Align activities with the UAE’s Nationally Determined Contributions (NDCs) under the Paris Agreement.

  5. Penalties for Non-Compliance:

    • Violations may result in fines up to 1 million AED, suspension of trading rights, or cancellation of licenses.

Deadlines and Implementation Dates

  • Enforcement Date: The Resolution takes effect six months from its publication in the Official Gazette, which means December 2024.

  • Regularization Period: Entities must comply with the Resolution's provisions within six months from its enforcement, which means June 2025.

  • Baseline Year: Carbon credits approval is retroactive to activities starting from 2019.

Implications for Stakeholders

This Resolution creates an opportunity for large emitters and smaller entities to engage in regulated carbon markets. Key benefits include:

  • Access to Carbon Credits: Entities can generate or trade carbon credits to offset emissions.

  • Alignment with Global Standards: Compliance ensures alignment with international climate frameworks.

  • Support for Sustainability Goals: Incentivizes emission reductions and supports the UAE’s climate neutrality objectives.

By implementing this framework, the UAE strengthens its position as a leader in climate action and carbon market development, while fostering accountability and innovation across industries.