In June 2024, the United Arab Emirates introduced Cabinet Resolution No. 67 of 2024, establishing the National Register of Carbon Credits (NRCC) as part of its strategy to achieve climate neutrality by 2050. The resolution, which took effect on December 28, 2024, requires entities to comply by June 28, 2025, reinforcing the UAE’s leadership in climate action. It sets a regulatory framework that rewards emission reductions and imposes penalties for non-compliance.

The resolution applies to public and private entities with annual carbon emissions exceeding 0.5 million metric tons of CO₂ equivalent and those voluntarily reducing emissions below this threshold. It also covers carbon credit trading platforms, requiring them to operate under the Securities and Commodities Authority (SCA). Entities must register with the NRCC, submit annual emission reports, and maintain monitoring, reporting, and verification systems to ensure compliance.

The resolution treats carbon credits as financial instruments, allowing them to be traded domestically and internationally. Prices will be market-driven, with current global rates ranging from $52 per ton in the UK to $4.6 in Tokyo. The UAE aims to create a transparent and efficient carbon market, enabling high-emission entities to offset their footprint while incentivizing lower emissions. Businesses must now assess their GHG emissions, develop compliance systems, register with the NRCC, and explore carbon trading opportunities to align with the new regulations.

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