The Abu Dhabi Global Market, which teamed up with AirCarbon Exchange (ACX) last year to create a fully regulated carbon-trading exchange and clearing house in the emirate, announced on Wednesday that the exchange has gone live with key trades executed.
The inaugural carbon credits trade on the exchange was executed between First Abu Dhabi Bank (FAB) and specialist carbon trading company Helix Climate, a statement from ACX said.
Carbon credits, or carbon offsets, are permits that allow holders to compensate for emissions of carbon dioxide or other greenhouse gases.
ACX established its regional base in ADGM in August 2021 with the support of Hub71, Abu Dhabi’s global tech ecosystem. Hub71 is powered by Mubadala Investment Company PJSC (Mubadala), an Abu Dhabi sovereign investor. Mubadala invested in ACX in September 2022 as a strategic step in line with its economic diversification mandate and commitment to responsible investing.
In September 2022, ADGM, became the first jurisdiction to regulate voluntary carbon credits as financial instruments through the introduction of an Environmental Instrument classification, a regulatory framework to license exchanges and clearing houses for both spot and derivatives markets for these products.
(Writing by Brinda Darasha; editing by Seban Scaria)
brinda.darasha@lseg.com
