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Abu Dhabi to implement a carbon pricing scheme: Businesses operating in Abu Dhabi that emit large amounts of carbon will be required to monitor, report, and have their emissions verified by third parties annually, with initial reports required as of 2026, according to the Abu Dhabi Media Office. This is after the Abu Dhabi Environment Agency (EAD) launched an international standard carbon measurement, reporting, and verification (MRV) program to standardize greenhouse gas emissions reporting within Abu Dhabi’s industrial and energy sectors in the emirate.
The reporting program is the first step ahead of the establishment of a domestic carbon pricing scheme that aims to facilitate decarbonization in emission-intensive sectors. The UAE cabinet issued legislation earlier this year — set to come into force tomorrow — that requires firms with emissions equivalent to or more than 500k tons a year to track and report their emissions in a bid to begin regulating carbon credits, with plans to set up a National Register For Carbon Credits as the main regulator. Other emirates have yet to come out with their own monitoring systems.
The details: The program will produce data that adheres to international climate requirements, including those set by the United Nations Framework Convention on Climate Change and the Paris Agreement’s Enhanced Transparency Framework.
We knew this was coming: The emirate issued a decree requiring businesses licensed by the EAD to report their environmental data, including energy consumption and emissions, annually, in April, without clarifying at the time when this would take effect. Businesses will have to report on their energy, water use, and emissions in Abu Dhabi during 1Q of each year. They will also need to include information on operations, equipment, and emission control, as well as report accidents.
PLUS- Businesses operating in Abu Dhabi were also required to obtain an environmental license from the EAD and adhere to new limits for noise and air pollution in a separate decree issued in May.
The story got ink in Bloomberg.
