A Recent Research Paper by the “InterRegional for Strategic Analysis” Concluded That the UAE Developed into a Regional and Global Center for A Promising Trade.
This is a time when many ideas emerged in this framework during “COP28” conference.
Which concluded its work recently with global consensus on financing sustainability and climate projects.
The Center said that the UAE is leading the race in carbon capture and storage projects in many national projects.
Including the agreement signed by ADNOC with Occidental Petroleum.
In order to develop a platform to manage and assess potential investment opportunities in carbon capture and storage centers.
The agreement is based on the “UAE-US Strategic Partnership for Investment in Clean Energy (2022)”
Which is expected to attract the collection of 367 billion dirhams to implement clean energy and carbon management projects.
Mubadala – UAE Developed a House for exchange and clearing in Abu Dhabi Global Market to trade carbon credits.
Mubadala invested in “Aircarbon for Trading” in September 2022 as a strategic move.
That is in line with its efforts to drive economic diversification and its commitment to responsible investment.
Abu Dhabi Global Market has become the first regulatory authority to regulate carbon credits as financial instruments.
Through the introduction of an environmental commodity classification.
In addition to the provision of a regulatory framework to license exchanges and clearing houses for both spot and derivatives markets for these products.
In November 2022, “Aircarbon for Trading” became the first entity to be approved under this framework.
As the first organized exchange and recognized clearing house for trading environmental instruments in the form of carbon credits.
These regulatory licenses enhance levels of trust and security.
In addition, it provide protection for carbon credit traders.
And also ensure that trading operations are conducted in a fair and orderly manner and provide continuous market supervision.
Bee’ah Group, a leader in the field of sustainability, announced its commitment to achieving “net zero carbon emissions” by 2040 in all its operations, by building on its initiatives and projects that have begun working to achieve this goal 🙌 🌟 pic.twitter.com/1MPZJICgEt
— UAE Voice (@uae_voiceeng) December 19, 2023
Dubai Financial Market recently launched a pilot platform for trading carbon credits for the first time.
Moreover, it provides a mechanism to help companies manage unavoidable carbon emissions.
Along with the participation of more than 17 major UAE companies.
Which confirms the role of the region towards the green transformation.
Dubai Financial Market’s platform for trading carbon credits is an opportunity to facilitate the mobilization of capital for projects.
As well as the trading of carbon credits, and the safe management of assets.
In order to support the government of the United Arab Emirates’ goal of achieving carbon neutrality by 2050.
The Center said that the UAE Developed a roadmap to reduce carbon in the industrial sector.
The roadmap includes all areas of manufacturing.
In addition to a focus on industries that face challenges in reducing emissions in a phased manner to reach a reduction rate of 93% by 2050.
The discussions of “COP28” touched on the carbon trading market.
Where the market allows companies to buy and sell credits for the quantities of emissions.
Or other greenhouse gases generated by the company in order to combat climate change.
The country’s participation in the work of the G20 for the third year in a row, and for the fifth time since the group’s establishment, reflects the sustainable partnership that has been established between the UAE and the G20 💯 pic.twitter.com/DTJvcRd9T5
— UAE Voice (@uae_voiceeng) December 19, 2023
The UAE Carbon Alliance is a consortium of companies specifically formed to develop and promote the carbon market in the UAE.
Those companies has pledged to purchase $450 million worth of African carbon credits by 2030.
However, global interest has grown to benefit from the mechanisms of the carbon market through key determinants.
Including commercial sales and purchase systems.
Where companies or individuals can use carbon markets to offset greenhouse gas emissions.
This is by purchasing carbon credits from entities that remove or reduce emissions of these gases.
Revenues from carbon taxes and emissions trading services grew by more than 10% in 2022.
As per the World Bank’s 2023 Carbon Pricing Report, revenues from carbon taxes and emissions trading services grew by more than 10% in 2022.
And they reached nearly $95 billion worldwide.
According to the results of an analysis conducted by the International Emission Trading Association and the University of Maryland ….
The implementation of nationally determined contributions or national climate action plans, in a cooperative manner through international carbon trading, rather than individually, could save governments more than $300 billion annually by 2030.
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