GHG Scope 1, 2 & 3 Emissions: Explained for UAE Businesses

Why Scopes Matter for UAE Compliance

Federal Decree-Law No. 11 of 2024 requires UAE businesses to report emissions across all three GHG Protocol scopes. Understanding what falls into each scope is critical for accurate reporting — and for avoiding the AED 50,000–2,000,000 in fines for non-compliance.

Scope 1: Direct Emissions

Scope 1 covers emissions from sources your business directly owns or controls. Common examples for UAE businesses:

• Natural gas combustion — boilers, furnaces, cooking equipment
• Diesel generators — extremely common in UAE construction and manufacturing
• Company fleet vehicles — owned cars, trucks, delivery vans
• Refrigerant leaks — air conditioning is ubiquitous in the UAE; refrigerant fugitive emissions are Scope 1
• Industrial processes — manufacturing reactions that emit CO₂, CH₄, or N₂O

Scope 2: Indirect Emissions from Purchased Energy

Scope 2 covers indirect emissions from the generation of electricity, steam, heat, or cooling you purchase. In the UAE, this means your electricity bill's carbon footprint.

The emission factor varies by emirate:

• DEWA (Dubai) — uses a grid emission factor reflecting Dubai's power mix
• ADDC (Abu Dhabi) — Abu Dhabi's grid has significant nuclear power (Barakah), affecting its emission factor
• SEWA (Sharjah) and FEWA (Northern Emirates) — each have distinct factors

Using the wrong emission factor is a common compliance error. SmartFenek automatically applies the correct factor based on your company's emirate.

Scope 3: Value Chain Emissions

Scope 3 is the most comprehensive — it covers all other indirect emissions in your upstream and downstream value chain. This includes:

• Business travel — flights, hotel stays for business purposes
• Employee commuting — staff travel between home and office
• Supply chain — emissions from goods and services you purchase
• Waste generation — emissions from waste disposed at landfills
• Downstream logistics — delivery of your products to customers

Reporting Timeline for UAE Businesses

MOCCAE requires annual reports covering the previous calendar year's emissions. For 2026, you'll report 2025 emissions. The deadline is May 30, 2026. Reports are submitted through MOCCAE's National MRV System with a MOCCAE reference number issued upon approval.

How SmartFenek Simplifies Scope Reporting

SmartFenek guides you through each scope with structured forms and pre-loaded UAE emission factors. Enter your activity data, and the platform calculates tCO₂e automatically using MOCCAE-aligned methodology. Export your report in the required format with your MOCCAE reference number field included.

Start your free trial and complete your Scope 1, 2, and 3 assessment today.