Mubadala Investment Co. is investing in a carbon-trading exchange operator. The sovereign fund will acquire part of AirCarbon Exchange, according to a statement.
The stake will be at least 20%, according to people familiar with the matter.
ACX, which has offices in Singapore and Abu Dhabi, uses blockchain technology to securitise carbon credits.
Mubadala carbon exchange
It will soon start operating the first carbon exchange in the United Arab Emirates.
That’s part of the UAE’s efforts to neutralise emissions by 2050 and prepare for hosting next year’s COP28 climate summit.
Companies can buy credits on exchanges to offset some of the emissions they produce.
The global voluntary carbon market has grown rapidly in recent years, but so has skepticism that the credits help remove carbon emissions from the atmosphere.
The announcement was made during Abu Dhabi Finance Week hosted by Abu Dhabi Global Market, in partnership with key economic drivers of the Abu Dhabi economy and a group of global and regional financial institutions.
The week-long event serves as a platform for in-depth conversations around the MENA region’s thriving financial sector, industry trends, developments and innovation involving financial markets and global banking.
The agreement was signed by Badr Al Olama, Executive Director, UAE Clusters at Mubadala, Dhaher Bin Dhaher, Chief Executive Officer of Registration Authority at ADGM, and William Pazos, Managing Director and Co-Founder of ACX, in the presence of Ahmed Jasim Al Zaabi, Chairman of ADGM, and Musabbeh Al Kaabi, Chief Executive Officer of UAE Investments at Mubadala.
Commenting on this, Al Zaabi said, “The UAE continues to be a leader in leveraging the path to a lower carbon economy to safeguard the environment, drive down emissions and create lasting economic opportunities.
“The investment by Mubadala in ACX is a great testament to the commitment towards climate action, which will enable investors and businesses to voluntarily purchase verified emissions reductions in the form of carbon credits within the progressive ecosystem of ADGM.”
Al Olama said, “The UAE is spearheading the transformation of the financial ecosystem, and this investment is a testament to our role in contributing to it.
“By investing in ACX and pioneering the future of environmental commodities, we demonstrate our ability to combine impact with investments that support both the decarbonisation and diversification of the UAE economy.”
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