UAE’s New Climate Rules Raise the Stakes

A new UAE climate law pushes Gulf operators toward stricter tracking, reporting, and planning for future unconventional projects

31 Aug 2025

The United Arab Emirates has introduced a climate law that will require companies across the country to measure, report and manage their greenhouse gas emissions under national standards, a shift expected to influence how future shale and tight gas projects are designed across the Gulf.

Federal Decree-Law No. 11 of 2024, which took effect on May 30, 2025, sets a compliance deadline of May 2026 and includes financial penalties for firms that fail to meet reporting rules. The measure moves the sector from voluntary initiatives to binding obligations at a time when the region is assessing large-scale unconventional gas options.

Industry analysts said the new framework would push national oil companies, including ADNOC, to integrate emissions monitoring and digital reporting systems more closely into project design. ADNOC has already highlighted the use of advanced analytics and artificial intelligence to monitor emissions across its assets, tools that observers expect to become more central as the company evaluates unconventional plans.

In Abu Dhabi’s Al Dhafra region, EOG Resources is appraising Unconventional Onshore Block 3 under a concession that grants it full equity and operatorship during the initial phase. Analysts expect the US group to adopt detailed emissions tracking early in the programme, noting that stronger reporting could support its position as regulatory expectations tighten and investors examine carbon performance more closely.

The law is also being watched in neighbouring markets. Saudi Aramco, which is expanding unconventional gas output at Jafurah, has placed growing attention on methane monitoring, satellite observation and digital oversight. While these efforts are not directly tied to the UAE legislation, many observers view Federal Decree-Law No. 11 of 2024 as a regional benchmark that could shape how future Gulf projects are financed and approved.

Service providers are adjusting to the new landscape. Consulting groups, technology suppliers and drilling contractors are offering systems that improve data quality, automate reporting and support lower-impact field development, opening commercial opportunities beyond exploration and production.

Some operators caution that compliance costs will rise, especially for smaller companies and new entrants. Building emissions inventories, upgrading equipment and aligning internal systems with national platforms will require investment. Yet many industry participants see the rule as a catalyst for modernisation, arguing that better data can improve operational efficiency and help secure capital as buyers and lenders favour lower-carbon supply.

As the compliance deadline approaches, environmental performance is becoming a more central element of unconventional strategy in the Gulf, with the UAE setting an early marker through a binding legal framework.