Emissions Classification Guide

Understanding Scope 1, 2 & 3 Emissions

A complete guide to emissions classification for UAE businesses

The Three Scopes

Quick Overview

The GHG Protocol classifies emissions into three scopes based on control and source

Scope 1
Direct Emissions
Emissions from sources owned or controlled by your company
  • Company vehicles & fleet
  • On-site fuel combustion
  • Manufacturing processes
Scope 2
Indirect Energy
Emissions from purchased electricity, heat, steam, and cooling
  • DEWA electricity consumption
  • District cooling (Empower, Tabreed)
  • Purchased steam
Scope 3
Value Chain
All other indirect emissions across upstream and downstream activities
  • Purchased goods & services
  • Business travel & commuting
  • Waste & investments

Deep Dive

Understanding Each Scope

Scope 1

Direct Emissions

Emissions from sources that your company owns or controls. These are the most straightforward to measure and often the easiest to reduce because you have direct operational control.

UAE Business Examples

  • •Company vehicles (fleet): Diesel and gasoline combustion from delivery trucks, company cars, and service vehicles
  • •On-site fuel combustion: Diesel generators for backup power (common in UAE), boilers for hot water, furnaces
  • •Manufacturing processes: Emissions from cement, steel, or chemical production
  • •Fugitive emissions: Refrigerant leaks from AC units (critical in UAE climate), fire suppression systems
Calculation Methods
Emissions = Fuel Consumed × Emission Factor

Use fuel purchase records, vehicle mileage logs, and UAE-specific emission factors from Dubai Carbon (≈2.68 kg CO₂e per liter diesel).

Reduction Strategies
  • • Transition fleet to electric or hybrid vehicles
  • • Install solar + battery backup instead of diesel generators
  • • Upgrade to efficient boilers and HVAC systems
  • • Implement preventive maintenance to reduce fugitive emissions
Calculation Methods

Location-Based

Uses DEWA/ADDC grid emission factors (≈0.45 kg CO₂e/kWh)

Market-Based

Accounts for renewable energy purchases, I-RECs, Shams Dubai

Reduction Strategies
  • • Install rooftop solar via Shams Dubai program
  • • Purchase I-RECs for renewable energy claims
  • • Upgrade to LED lighting and efficient HVAC
  • • Optimize building management systems
Scope 2

Indirect Emissions (Energy)

Emissions from the generation of purchased energy. While your company consumes the energy, the emissions occur at the power plant or district cooling facility.

UAE Business Examples

  • •DEWA electricity consumption: Grid power for offices, retail, manufacturing facilities
  • •District cooling: Chilled water from Empower, Tabreed, or other district cooling providers
  • •Purchased steam: Industrial processes requiring thermal energy

UAE Context: With extreme summer temperatures and high AC demand, Scope 2 often represents 30-50% of a UAE company's carbon footprint.

Scope 3

Value Chain Emissions

All other indirect emissions that occur in your company's value chain—both upstream (supply chain) and downstream (product use). Often represents 70-90% of total emissions.

Categories Relevant to UAE

Purchased Goods & Services

Supply chain emissions

Business Travel

Flights, hotels, car rentals

Employee Commuting

Daily staff travel

Waste Generated

Disposal & treatment

Use of Sold Products

Customer energy use

Investments

For financial sector

Why Scope 3 Matters

Often the largest share: For many businesses, Scope 3 represents 70%+ of their total carbon footprint.

Regulatory pressure: Major UAE corporations now require Scope 3 data from suppliers.

Investment & ESG: Investors increasingly evaluate full value chain emissions.

Data Collection Challenges
  • • Limited supplier emissions data availability
  • • Complex supply chains with multiple tiers
  • • Estimating customer product usage patterns
  • • Tracking business travel across multiple systems

Comparison

Scope 1 vs 2 vs 3

FeatureScope 1Scope 2Scope 3
DefinitionDirect emissions from owned/controlled sourcesIndirect emissions from purchased energyAll other indirect value chain emissions
Control LevelHigh — direct operational controlMedium — controlled consumptionLow — limited influence
Typical SourcesFleet, generators, boilersDEWA, district coolingSupply chain, travel, waste
Data AvailabilityHighHighVariable
Typical % of Total5-20%10-30%70-90%
UAE ReportingMandatoryMandatoryVoluntary (recommended)

Local Context

UAE-Specific Considerations

DEWA Grid Emissions

Dubai's electricity grid has a combined margin emission factor of approximately 0.45 kg CO₂e/kWh.

Abu Dhabi (ADDC) uses slightly different factors. Always verify current factors with Dubai Carbon as the UAE rapidly expands solar capacity.

District Cooling

Many Dubai developments use district cooling (Empower, Tabreed). These emissions fall under Scope 2.

Cooling providers publish emission factors. Check if your building uses centralized chilled water systems.

Free Zone Factors

Free zones may have different energy infrastructure. Some have dedicated power plants or district cooling systems.

DMCC, DIFC, JAFZA, and ADGM companies should verify their specific emission factors with zone authorities.

UAE Regulatory Requirements
Mandatory

Scope 1 & 2

Large emitters, listed companies, and certain industrial facilities must report direct and energy indirect emissions.

Voluntary

Scope 3

Currently voluntary but strongly recommended. Major UAE corporations increasingly require supplier Scope 3 data.

Upcoming

Expanded Scope 3

Dubai's Canopy platform and UAE Net Zero 2050 strategy indicate future expansion to broader Scope 3 reporting.

Methodology

Calculation Methods

GHG Protocol Approach
The global standard for emissions accounting

The Greenhouse Gas Protocol provides the accounting framework used by UAE regulators and Dubai Carbon. It defines:

  • Organizational boundaries (equity share or control approach)
  • Operational boundaries (Scope 1, 2, 3 classification)
  • Calculation methodologies and emission factors
  • Reporting and verification requirements
UAE Emission Factors
Local factors for accurate calculations

Use UAE-specific emission factors where available for the most accurate results:

Dubai Carbon Factors

Grid electricity: ~0.45 kg CO₂e/kWh

Diesel: ~2.68 kg CO₂e/liter

MOCCAE Factors

National emission factors for major fuel types

Updated annually as grid composition changes

Tools & Resources

IEQT Platform

UAE's official reporting portal

Dubai Carbon

Emission factors & guidance

MOCCAE

National climate authority

DEWA/ADDC

Utility emission factors

Visual Guide

Typical Emissions Distribution

While every business is different, here's how emissions typically break down for various UAE industries

Office / Service
Scope 15%
Scope 235%
Scope 360%
Manufacturing
Scope 120%
Scope 230%
Scope 350%
Logistics
Scope 140%
Scope 215%
Scope 345%

FAQ

Frequently Asked Questions

Calculate Your Scope 1, 2 & 3 Emissions

Use our free UAE carbon calculator to estimate your emissions across all three scopes and understand your reporting obligations.