SK Group and the UAE sovereign wealth fund announced yesterday that they are joining forces to launch a carbon credit market.
SK Group is South Korea’s semiconductor-to-telecommunications conglomerate and the company has been making large strides in all things carbon, such as the adoption of carbon capture technology, and so on.
This recent partnership between SK and the UAE sovereign wealth fund is yet another step in the direction of tackling the climate crisis, only this time it is through the creation of a carbon credit market in Asia.
Both sides signed a memorandum of understanding (MoU) at the United Arab Emirates presidential palace in Abu Dhabi on Sunday.
Under this MoU, SK and the Mubadala Investment Company will launch a platform where certified carbon credits can be traded to help reduce the impact of climate change.
The new voluntary carbon market is expected to be open to businesses and organizations in different Asian countries that will lead by example where environmental protection and social responsibility are involved.
SK said that both sides will also form a working group to develop the necessary certification methodologies that will help ensure the market’s credibility and transparency, and both SK and Mubadala already have relevant experience in this field.
The agreement is also in line with all SK affiliates’ commitment to help the South Korean government reach carbon neutrality by mid-century.
And the announcement of this very high-profile partnership came at the time of a four-day state visit to Abu Dhabi of SK CEO together with President Yoon Suk Yeol.