Abu Dhabi's first year of mandatory emissions reporting sets stage for net-zero goal

Abu Dhabi has wrapped up its first year of implementing a mandatory system for measuring, reporting, and verifying carbon emissions, something the emirate claims will boost its credentials in the green economy and attract more sustainable investments.

The Environment Agency – Abu Dhabi (EAD) announced that this initiative, which kicked off in December 2024, has already brought a large chunk of industrial activity under a unified emissions framework. According to the agency, the data collected so far account for about 90 million tonnes of CO2 from more than 250 facilities spread across four major sectors: energy, oil and gas, manufacturing, and transportation. EAD also added that these submissions cover nearly 80% of the primary emissions sources in the emirate.

“Year one of the measurement, reporting, and verification program marks a significant step, moving from climate ambitions to actual data-driven action. By tracking around 90 million tonnes of CO2 emissions from over 250 facilities, we’ve managed to include nearly 80% of the key activities responsible for emissions within a transparent and standardized framework. This approach helps establish a high-performing, low-carbon economy and strengthens long-term competitiveness,” said Dr. Sheikha Salem Al Dhaheri, the secretary-general of EAD, in a statement.

The agency sees this reporting system as a practical tool for industry leaders. The collected data enable companies to pinpoint their most carbon-heavy operations, prioritize energy efficiency upgrades, identify operating cost savings, and plan emission reductions linked to manufacturing processes. Over time, EAD argues, these measures should not only improve productivity but also help align the emirate with its medium-term climate commitments.

EAD also connected the scheme to a legal requirement. The program was shaped with input from both public and private stakeholders so that it’s practical to implement and helps ensure compliance with Federal Decree-Law No. 11 of 2024 concerning climate change. As part of this law, companies must measure and periodically report on their emissions, creating a formal basis for transparent disclosures and regulatory oversight, the agency explained.

The first cycle of reporting has established a clear timeline for the next phase. Facilities must submit their emissions data for the January to December 2025 period by March 31, 2026, following technical guidance provided by EAD. The agency described this as a step toward building a unified, high-quality emissions accounting system for regulated sectors, and as a move towards the UAE’s broader goal of achieving net-zero emissions by 2050.

Experts and policy analysts note that the Abu Dhabi program helps address a critical gap in regional emissions management, namely, the need for comparable, reliable data. As reported by Al Khaleej, the initiative was rolled out to align reporting with international standards and to explore market tools, including carbon pricing, which could be applied locally. The publication pointed out that this scheme could improve the quality of greenhouse gas inventories in energy and industry sectors, thus boosting the emirate’s competitiveness in carbon-sensitive financial markets.

Interestingly enough, this move coincides with increased scrutiny of the private sector’s capacity for climate action. In January 2026, the Ministry of Climate Change and Environment launched a UAE Climate Alliance assessment titled “Managing the Decarbonisation Process: Assessing the Landscape of Non-Governmental Actors in the UAE and Their Capabilities.” This first-of-its-kind report examines how ready non-governmental organizations are to contribute to decarbonization efforts. According to the ministry, the study maps out private sector strengths and identifies gaps, providing a baseline for future policy and investment decisions.

Put together, the EAD program and the UAE Climate Alliance report seem to point toward a broader policy intention: linking mandatory reporting with efforts to build capacity and leverage market signals. EAD explicitly ties the emissions data to Abu Dhabi’s climate strategy, which aims for a 22% reduction in emissions by 2027. Making this data transparent and comparable is seen as a way to accelerate the adoption of advanced technologies and encourage operational improvements that not only benefit the climate but can also boost economic growth.

Of course, some analysts caution that truly meaningful progress depends on turning these measurements into real cuts. Accurate data collection is essential, but it’s just one part of the puzzle. The real challenge lies in getting regulated entities to invest in cleaner equipment, switch to renewable energy sources, and implement process innovations. Policy instruments like carbon pricing or incentives for low-carbon investments will likely influence how quickly industries can make these changes, industry commentators suggest.

For stakeholders involved in climate tech and sustainability in the UAE, Abu Dhabi’s reporting system presents both opportunities and obligations. The scheme creates a budding demand for monitoring, reporting, and verification services, plus emissions control tech, efficiency upgrades, and digital tools to manage and audit data. At the same time, companies must meet deadlines and show proof that they’re making progress toward statutory and strategic targets.

EAD stressed that the data generated through this program will guide future policies and investment priorities and align local reporting standards with international norms. If scaled effectively, the agency argues, this standardized set of data could position Abu Dhabi as a more attractive hub for green investment and foster innovation in the industrial sector.

Looking ahead, as Abu Dhabi prepares for its second reporting cycle, the focus will shift from simply disclosing data to taking concrete steps to reduce emissions. The upcoming months will reveal whether the emirate can effectively use this new information to speed up the deployment of low-carbon technologies and hit its interim reduction targets before 2027.

Source: Noah Wire Services