- The Dubai Financial Market (DFM) has unveiled a pilot programme for trading carbon credits, set to launch at the COP28 climate conference next week. Under this initiative, each carbon credit symbolizes a tangible reduction in carbon emissions, with one credit offsetting a tonne of carbon dioxide-equivalent emissions. Hamed Ali, chief executive of DFM and Nasdaq Dubai says, “The launch of carbon credit trading represents a logical progression for DFM as a platform for ESG-focused themes and building on our existing track record.”
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This pilot programme, commencing for institutional investors, will facilitate trading from December 4-8, with the offsetting period concluding on January 10. Over 17 UAE companies, including Dubai Electricity and Water Authority (Dewa), DP World, Dubai Municipality, Dubai International Financial Centre, and Emirates NBD, are expected to participate in the inaugural pilot. Executed through brokerages like Al Ramz Capital, Arqaam Securities, BHM Capital, EFG Hermes, and Emirates NBD Securities, this initiative definitely positions DFM at the forefront of sustainable finance.
Why it matters
Carbon credit markets are anticipated to experience rapid growth in the Mena region as countries adopt carbon compliance regulations in their pursuit of net-zero goals. Last year, Abu Dhabi Global Market collaborated with AirCarbon Exchange to establish the "world’s first fully regulated" carbon trading exchange. With the carbon credit market projected to surpass $50 billion by 2030, the DFM's pioneering initiative underscores the region's commitment to sustainable practices and responsible urban development
