Abu Dhabi National Oil Co. (Adnoc), the largest oil producer in the United Arab Emirates, has announced its plans to start generating and trading carbon credits.
As reported by Bloomberg, Adnoc plans on creating carbon credits from its own projects aimed at reducing CO2 emissions, as well as from projects designed to reduce emissions in other sectors in the UAE.
The generated credits would then be made available for purchase, which will enable buyers to offset potential carbon taxes on export goods.
As the world gradually transitions to greener energy sources and a low-carbon economy, buyer preferences are beginning to shift, particularly in the energy sector.
And to accommodate these shifts in preferences, oil producing nations like the UAE and Saudi Arabia are gearing their efforts towards launching carbon markets.
Currently, both nations are seeking to attract banks and companies that will help establish and further develop these carbon trading markets.
This year, the UAE will be hosting the United Nations Climate Change Conference or Conference of the Parties of the UNFCCC, also better known as COP28, which is spearheaded by Adnoc CEO Sultan Al Jaber.
Despite the criticism towards appointing a major oil executive for president of the world’s largest climate summit, Al Jaber has already made announcements that demonstrate his belief in the energy transition and everything that goes along with it.
Just last week Al Jaber pointed out that the phasing out of fossil fuels is ‘inevitable’, which marks his most dramatic statement on the prospect of fossil fuels to date.
The newly established carbon desk is part of Adnoc’s trading company called Adnoc Trading, which was created in 2020 as the oil giant’s arm for dealing with crude and liquefied natural gas.
Read more: UAE Appoints An Oil CEO As COP28 President