Gulf Countries

Today…the launch of the carbon credits trading platform through the Dubai Market

The trial platform for trading carbon credits, anticipated by the Dubai Financial Market (DFM), will be launched today.

Its implementation coincides with the 28th session of the United Nations Framework Convention on Climate Change (COP28), taking place from December 5 to December 11, 2023.

Qualified institutional investors will be able to buy and sell on the platform during this period, with the carbon credit settlement operations concluding on January 10, 2024.

The platform will see participation from more than 24 prominent UAE companies, including the Dubai Electricity and Water Authority, DP World, Dubai Municipality, Dubai International Financial Centre, Emirates NBD, Majid Al Futtaim, Shuaa Capital, Al Ansari Financial Services, Emaar Properties, Salik, SEI Holdings, Five Holdings, Gulf Cryo, and others.

Dubai Financial Market has closely collaborated with the Dubai Future Foundation as a project partner. Transactions will be executed through six brokers on the Dubai Financial Market: Rasmala Capital, Numbers Securities, BH M Capital Financial Services, Hermes Financial Group, Emirates NBD Securities, and Abu Dhabi First Securities.

Clearing and settlement operations will be in US dollars, managed by Dubai Clear and Dubai Depository, with daily global price references provided by leading pricing agencies such as Oil Price Information Service (OPIS), a Dow Jones company.

The carbon credits traded on the Dubai Financial Market will originate from projects by Dubai Electricity and Water Authority, First Abu Dhabi Bank, and My Carbon. These projects are internationally accredited for carbon avoidance, reduction, and removal initiatives, verified by globally recognized rating agencies or the Verra program and the United Nations Clean Development Mechanism.

This move reinforces the leading position of the financial market as a climate-centric regulatory platform, facilitating capital accumulation for projects, trading carbon credits, and secure asset management, in support of the United Arab Emirates’ government goal to achieve carbon neutrality by 2050.

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