Abu Dhabi-based sovereign investment company Mubadala said it has reached an agreement with AirCarbon Exchange, the global exchange revolutionising the voluntary carbon market, to acquire a strategic stake in the Exchange, thus supporting ACX’s establishment of the first fully regulated carbon trading exchange and carbon clearing house in the UAE capital.
ACX is a global environmental commodities exchange based in Abu Dhabi’s global tech ecosystem Hub71 that uses distributed ledger technology. leveraging blockchain architecture to create securitized carbon credits.
This framework allows corporates to trade and finance carbon credits like conventional financial assets, increasing participation and investment in global programs for carbon emission reduction and offset.
As part of its responsible investing and economic diversification mandate, Mubadala said it was investing in commercially attractive solutions to the world’s most significant challenges and also purposefully deploying capital in high growth sectors that drive substantial change.
The announcement was made during the first edition of Abu Dhabi Finance Week (ADFW) in the UAE capital which concludes tomorrow (November 18), 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 signing was witnessed by Ahmed Jasim Al Zaabi, Chairman of Abu Dhabi Global Market and Musabbeh Al Kaabi, the CEO of UAE Investments at Mubadala and signed by Badr Al Olama Executive Director, UAE Clusters at Mubadala, Dhaher Bin Dhaher Chief Executive Officer of Registration Authority at Abu Dhabi Global Market, and William Pazos Managing Director and CO – Founder of AirCarbon Exchange.
On the deal, 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."
"As one of the first-fully regulated jurisdictions in the world to regulate carbon credits and offsets as environmental instruments in a voluntary market, ADGM is committed to playing a leading role in facilitating the transition to a lower carbon economy by stimulating sustainable finance flows of investments," he noted.
Thomas McMahon, the CEO & Co-Founder of ACX, said the deal represents Mubadala's confidence in the growth potential of ACX and validates the hard work the team has committed into developing ACX and its joint commitment going forward to scaling the voluntary carbon market both in region and globally.
Al Olama said the UAE was spearheading the transformation of the financial ecosystem, and this investment was a testament to Mubadala's role in contributing to it.
"By investing in Air Carbon Exchange and pioneering the future of environmental commodities, we demonstrate our ability to combine impact with investments that support both the decarbonization and diversification of the UAE economy," he added.-TradeArabia News Service