The UAE has no national carbon market of the kind the EU or UK runs. Instead, a 2024 federal climate law requires organisations to measure and report their emissions, the federal government is building a national carbon registry, and Abu Dhabi Global Market regulates carbon credit trading. Anyone can buy voluntary credits. This guide explains how the pieces fit together. For other countries, see our countries hub.

The UAE’s climate law and targets

In August 2024 the UAE issued Federal Decree-Law No. (11) of 2024, a federal climate change lawSource 7. According to the UAE’s own summary in its 2035 NDC, the law:

  • lets the Cabinet, on proposals from the Ministry of Climate Change and Environment (MOCCAE), set annual emissions reduction targets for all sectors
  • sets up regular measurement, reporting and verification of emissions
  • creates a national carbon registry
  • sets penalties for non-compliance and offers incentives for emissions-reduction technologies

The list follows the NDC’s description of the lawSource 7. The same NDC, submitted in November 2024, commits the UAE to cutting greenhouse gas emissions by 47% by 2035 compared with 2019, from 196.3 MtCO₂e to 103.5 MtCO₂eSource 7.

Reporting, not trading

The climate law is about measuring, reporting and reducing emissions. We found no national cap-and-trade scheme, so most buyers in the UAE use the voluntary market. Our guide to voluntary vs compliance markets explains the difference.

To support reporting, the UAE is developing a National MRV Transparency System with a digital Integrated Emissions Quantification Tool. By the time the NDC was published, the system had reached a public beta phase, where local and national entities could test data collection and verificationSource 7.

The national carbon registry

MOCCAE is the main body responsible for carbon market tools in the UAESource 7. The NDC says MOCCAE aims to operate a national carbon registry platform that will manage and report transactions in national credits and in internationally transferred mitigation outcomes (ITMOs) under Article 6, and that the registry will be integrated with the MRV systemSource 7.

The groundwork started earlier. On 7 August 2023 MOCCAE signed a memorandum of understanding with Industrial Innovation Group and Venom Foundation to build a national system for carbon credits on blockchain technology, covering the issuance, transfer and tracking of creditsSource 4.

Carbon credit trading in Abu Dhabi Global Market

Abu Dhabi Global Market (ADGM) has its own financial regulator, the Financial Services Regulatory Authority (FSRA). Its rules define an Environmental Instrument as a financial instrument that attests to the reduction or removal of greenhouse gases, such as a carbon credit, as well as emissions allowances and renewable energy certificatesSource 8.

The FSRA’s spot commodities guidance covers trading, clearing and settlement by recognised investment exchanges, multilateral trading facilities and other authorised firms in or from ADGMSource 8. These venues serve companies and traders. As an individual, you are more likely to buy from a retailer.

Buying voluntary credits in the UAE

Individuals and businesses can buy from online retailers, marketplaces and brokers, which sell credits from projects around the world. Before you pay:

  • ask which registry holds the credits, and for the serial numbers
  • check that the credits are retired in your name, or that the certificate says in whose name they were retired
  • compare prices and fees across sellers in where to buy

Companies buying larger volumes should read our guide for companies, which covers due diligence and how corporate buyers procure credits.

Reduce first, then offset

Cut what you can before you buy, then use credits for the emissions that are left. Our guide for individuals shows how to size a purchase.

Claims and tax notes

What you can say about offsets

We found no UAE federal guidance specific to environmental or carbon-offset claims. The Consumer Protection Law, Federal Law No. 15 of 2020 as amended by Federal Decree-Law No. 5 of 2023, covers goods and services sold by suppliers and advertisers across the mainland and free zonesSource 9. Suppliers that advertise misleading prices or false data on goods and services face imprisonment of up to two years and a fine of up to AED 2 millionSource 9.

Keep claims factual: say how many tonnes you retired, of which credits, and link to the registry record. Avoid promising that a product or company is “carbon neutral”.

On tax, we found no Federal Tax Authority guidance specific to voluntary carbon credits. Ask the seller how VAT is applied to your purchase, and speak to a tax adviser about your own case.

How to check quality before you buy

Each Verra credit represents one tonne of CO₂e reduced or removedSource 1, and registries such as Gold Standard’s track every credit from issuance to retirementSource 2. That makes three checks possible before you pay:

  • Is it in a public registry? Ask for the registry and serial numbers, and check the credits are retired in your name.
  • Is the method credible? The ICVCM’s Core Carbon Principles set a quality threshold, and credits that meet it can carry the CCP labelSource 3.
  • Is the seller clear? A good seller says what you are buying, what it charges and how and in whose name it retires credits.

Our guide to how to verify carbon credits shows the steps, and carbon credit scams lists the warning signs.

Article 6 deals

The UAE’s 2035 NDC says the country primarily intends to rely on domestic efforts, but may use voluntary cooperation under Article 6 of the Paris Agreement to partly meet its target, and would report this in its biennial transparency reportsSource 7. The Article 6 Implementation Partnership’s country profile lists the UAE’s authorisation and tracking arrangements as in progressSource 6.

On 16 April 2023 the UAE signed a memorandum of cooperation with Japan on the Joint Crediting Mechanism (JCM), Japan’s bilateral crediting schemeSource 5. Our Japan guide explains how the JCM works. For how other countries handle Article 6, see our guides to India and Canada.

How to buy, step by step

  1. Step 1: Work out what to cover

    Estimate your footprint and cut what you can first.

  2. Step 2: Choose a project type

    Pick avoidance or removal credits from a recognised standard.

  3. Step 3: Pick a provider

    Compare retailers, marketplaces and brokers on registry serials and certificates.

  4. Step 4: Check the registry record

    Confirm the credits are retired in your name on the registry.