Climate Reduction Regulatory Compliance

At SSTC, our Climate Reduction Regulatory Compliance services help businesses navigate the increasingly complex regulatory landscape around climate change and greenhouse gas (GHG) emissions reductions. With the implementation of laws like the UAE Federal Decree-Law and the EU Carbon Border Adjustment Mechanism (CBAM), businesses need to stay ahead of evolving regulations and align their operations with national and international climate policies. We provide expert guidance to ensure businesses comply with these regulations, mitigate risks, optimize sustainability efforts, and maintain competitive advantages.

Overview

9.1 UAE Federal Decree-Law on Climate Change

The UAE Federal Decree-Law on climate change, effective from May 2025, sets requirements for emissions reduction, climate adaptation, and innovation for businesses in sectors like logistics, manufacturing, and services. All businesses must comply with this law to address their environmental impact and meet national climate goals.

9.2 EU Carbon Border Adjustment Mechanism (CBAM)

The EU’s Carbon Border Adjustment Mechanism (CBAM) is designed to prevent carbon leakage by imposing a carbon price on imports based on the embedded carbon content of products. This regulation will impact industries like manufacturing, energy, and transportation.

Approach

For UAE Federal Decree-Law Compliance:

1. Regulatory Alignment

➺ Strategic Alignment: Ensure organizational strategies align with the UAE’s emission reduction targets, climate adaptation measures, and mitigation requirements.

➺ Tools Used: Leverage regulatory mapping tools, UAE Climate Action Tracker, and carbon accounting tools for compliance and monitoring.

2. GHG Quantification and Reporting

➺ GHG Quantification & Reporting: Establish systems to track emissions and ensure compliance with UAE regulations, covering Scope 1, 2, and 3 emissions.

➺ Tools Used: Utilize GHG Protocol, ISO 14064-1, and local regulatory reporting frameworks for accurate monitoring and reporting.

3. Sustainable Practices Implementation

➺ Implement Emissions Reduction Strategies: Adopt energy efficiency measures, renewable energy solutions, and carbon offsetting strategies across operations.

➺ Tools Used: Energy efficiency assessment tools, carbon offset platforms, and renewable energy sourcing programs.

4. Transparency and Reporting

➺ Ensure Transparent & Regular Reporting: Maintain clear and consistent reporting on emissions and climate adaptation efforts to meet UAE regulatory requirements and climate goals.

➺ Tools Used: Carbon management platforms, automated reporting software, and SBTi reporting frameworks.

For EU Carbon Border Adjustment Mechanism (CBAM)

1. Carbon Emissions Assessment

➺ Assess Embedded Carbon Emissions: Assist businesses in calculating the embedded carbon emissions of imported products to evaluate CBAM cost exposure.

➺ Tools Used: Carbon footprint assessment software, LCA tools, and CBAM guidelines.

2. Carbon Reduction Strategy

➺ Develop Supply Chain Emission Reduction Strategies: Implement low-carbon technologies and enhance operational efficiency to minimize carbon emissions across the supply chain.

➺ Tools Used: LCA analysis, carbon reduction calculators, and supply chain optimization tools.

3. CBAM Reporting and Documentation

➺ Ensure CBAM Compliance & Reporting: Assist businesses in meeting CBAM reporting and documentation requirements with accurate and timely submissions.

➺ Tools Used: CBAM-specific reporting templates, regulatory databases, and compliance checklists.

Impact to Our Clients

For UAE Federal Decree-Law Compliance

➺ Full Compliance: Ensure adherence to the UAE’s climate change law and contribute to the nation’s climate targets.

➺ Minimized Environmental Impact: Implement sustainable practices to reduce emissions and lower the environmental footprint across operations.

➺ Incentives: Access government benefits for adopting green technologies, participating in carbon credit programs, and enhancing energy efficiency.

➺ Improved Operational Performance: Optimize energy use, resource efficiency, and cost savings while maintaining regulatory compliance.

For EU CBAM Compliance

➺ Compliance with EU Regulations: Ensure full adherence to EU CBAM regulations for products imported into the European market.

➺ Cost Reduction: Minimize exposure to carbon tariffs and reduce the financial impact of CBAM on the supply chain.

➺ Enhanced Competitiveness: Strengthen sustainability credentials and improve market position by aligning with carbon reduction requirements.

➺ Sustainable Sourcing: Implement low-carbon sourcing strategies to stay ahead of regulations while supporting climate goals.