By Safura Rahimi
A deal with EcoSecurities will see the emirate cut harmful carbon emissions through Kyoto-compliant projects.
Dubai is set to become the regional centre for emissions reduction as the Dubai Multi Commodities Centre (DMCC) teams up with EcoSecurities to cut down on carbon emissions in the emirate.
The deal is set to focus on developing clean technologies through projects compliant with the Kyoto Protocol's Clean Development Mechanism (CDM).
"In its mandate to facilitate the growth of the energy business in Dubai, DMCC has taken this strategic initiative with EcoSecurities to promote emission reduction investments, which yield both economic and environmental benefits," said Dr. Tilak Doshi, DMCC's executive director for energy.
The Kyoto Protocol's CDM-compliant projects give businesses economic incentives for reducing their pollutant emissions.
Developing a carbon project that reduces greenhouse gas emissions can generate tradable carbon credits that have a monetary value.
DMCC and EcoSecurities will work with developers in the UAE and GCC region to help them build up their carbon emissions reduction potential.
By using clean technologies and greater energy efficiency, project developers will be able to generate carbon credits and earn additional revenue.
"The size of a company's environmental footprint is coming under ever closer scrutiny from governments, investors and consumers," said Souheil Abboud, EcoSecurities' regional manager in the Middle East.
International treaties such as the Kyoto Protocol set quotas on the amount of greenhouse gases countries can produce. Countries, in turn, set quotas on the emissions of businesses.
Businesses that are over their quotas must buy carbon credits for their excess emissions, while businesses that are below their quotas can sell their remaining credits.
By allowing credits to be bought and sold, a business for which reducing its emissions would be expensive or prohibitive can pay another business to make the reduction for it. This minimizes the quota's impact on the business, while still reaching the quota.