Grant Thornton UAE’s Anand Balasubramanian on closing the climate compliance gap
With mandatory emissions reporting due by May 30, and fines of up to Dhs2m for violations, companies across mainland UAE and free zones are being forced to move quickly from broad ESG promises to measurable action
13 May, 2026
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As the UAE’s climate law shifts from policy ambition to enforceable regulation, businesses are facing a hard deadline, and potentially steep penalties for failing to comply.
With mandatory emissions reporting due by May 30, and fines of up to Dhs2m for violations, companies across mainland UAE and free zones are being forced to move quickly from broad ESG promises to measurable action.
Here, Anand Balasubramanian, senior partner Grant Thornton UAE, discusses why many firms are still unprepared, the biggest compliance blind spots, and why forward-thinking businesses are treating climate reporting as more than a box-ticking exercise.
He also explains why companies that act early could gain a strategic edge as the UAE moves closer to its net-zero ambitions.
With the UAE Climate Law now moving from policy to enforceable regulation ahead of the May 30 compliance deadline, what are the most common gaps you are seeing among organisations preparing for compliance?
We are seeing a disconnect between intent and infrastructure. Many organisations have announced ESG commitments but haven’t yet built robust internal reporting systems to back them.
Organisations need to understand that it is mandatory for all entities across the UAE mainland and free zones, with no explicit minimum emissions threshold specified.
While the larger entities and heavy emitters are better prepared, others need to enhance their level of preparedness to collect and validate data and prepare for registration and submission through the IQET tool from MOCCAE.
Another gap we see is that this agenda is primarily resting with sustainability teams in organisations and the level of senior management and board oversight around this requires enhancement.
Do you see UAE businesses treating climate compliance primarily as a regulatory obligation, or are forward-looking organisations already starting to use it as a strategic advantage?
Many companies initially treat the new climate law like any compliance duty, focusing on meeting the May 2026 reporting deadline and avoiding fines. But more are starting to view this as a business imperative by embedding emissions data into their governance frameworks with the same rigour as financial data.
Organisations with this mindset will begin to gain something useful: a future ready perspective, a clearer picture of operational risk, cost exposure, and a view on where efficiency gains are hiding. They will be better positioned when tougher requirements arrive, such as Scope 3 reporting.
With penalties of up to Dhs2m and no exemptions across sectors or free zones, what level of urgency do you think exists in the market right now, and where is the biggest risk of delay?
This should be a high priority for all organisations.
Penalties of up to Dhs2m, doubled for repeat violations, apply across sectors and free zones without exception. It is imperative that organisations start implementing the necessary governance and strategic plans now instead of waiting for perfect regulatory clarity.
This will ensure they have sufficient time to restructure their systems, retrain their teams, and verify their data properly.
The MRV platform requires discipline and familiarity, not a rushed login in the final weeks.
How can companies realistically shift from a compliance mindset to embedding sustainability into core business strategy without it becoming a cost-heavy exercise?
Organisations need to keep in mind that the ultimate objective of the reporting is to start them thinking about a path towards decarbonisation to support the National Net Zero Initiative.
The key is not to treat this as a separate workstream focused on reporting as a compliance requirement. Organisations that bolt sustainability reporting on as an add-on will always find it expensive and disruptive.
The ones doing it efficiently are integrating climate metrics into existing governance and reporting cycles, not building parallel systems. Start with what you have.
Map your Scope 1 and 2 sources, close the data gaps, and make MRV part of how your organisation already operates.
The cost of getting this right early is a fraction of what reactive restructuring will look like in 2027 when Scope 3 comes into scope.
Read: Deloitte’s Daniel Gribbin on what Gulf executives must get right on sustainability in 2026






















