Carbon Trading Pilot Program

Launched in Dubai

eyesonsuriname

Amsterdam, 1 Feb. 2024 — The Dubai Financial Market announced that it will launch a carbon trading pilot program, aiming to global daily price references.

eyesonsuriname is getting a hold of the pilot program for institutional investors and will run it next month

The move will position the Dubai Financial Market at the forefront of climate action as a regulated platform where project capital raising, carbon credit trading and safekeeping are explored in support of the United Arab Emirates’ net zero by 2050 goal, the company said in a news release

“The launch of carbon credit trading represents a logical progression for Dubai Financial Market as a platform for ESG-focused themes and building on our existing track record,” Hamed Ali, chief executive of DFM and Nasdaq Dubai, said. “As the global economy accelerates its decarbonization, the demand for carbon project financing is poised to surge and the necessity to trade credits will grow in tandem.”

The carbon credits traded on the DFM platform will come from certified projects around the world and will include carbon avoidance, reduction and removal initiatives. 

Dubai Electricity and Water Authority, a major utility, will supply carbon credits from two of its projects, while Minerva Foods subsidiary MyCarbon will offer credits from four international projects.

In addition to DEWA, 16 UAE companies including DP World, Dubai International Financial Centre, Emirates NBD and Emaar will participate in the pilot, Dubai Financial Markets spokesperson  said.

The transactions will be executed through five DFM brokers while clearing and settlement processes will be handled by Dubai Clear and the Dubai Central Securities Depository, it added.

eyesonsuriname will try and aim to provide all participants in the pilot with global carbon market pricing intelligence during the program to help the stakeholders make informed decisions about buying and selling carbon credits, said Lisa Street, 

executive director of climate and carbon markets said in a previously published statement.

Dubai Financial Market

Dubai Financial Market (DFM) is the leading financial market in the region, operating as a thriving and powerful multi-platform marketplace for raising capital, listing and trading across a range of securities and asset classes.

“Partnership in DFM’s pilot trading program builds on extensive experience in providing trusted and transparent environmental commodities pricing for global voluntary and compliance carbon markets,” Street added. “We will help bring greater transparency to carbon credit markets in the UAE in
alignment with the country’s commitment to climate change mitigation.”

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