Mubadala Investment Co., a United Arab Emirates wealth fund with $284 billion under management announced a deal with AirCarbon Exchange. The Abu Dhabi fund, is set to acquire a 20% stake (according to reporting from Bloomberg) in the carbon exchange.
Singapore-based AirCarbon Exchange (ACX) has already established an office in the Emirates and is in the process of launching the first regulat carbon market exchange and clearing house in the Abu Dhabi Global Market (ADGM).
The two companies made a joint announcement at the inaugural edition of Abu Dhabi Finance Week – organized by ADGM – on November 16th. Managing Director and Co-Founder of ACX William Pazos commented on the deal by saying, “Carbon markets are growing at breakneck speed, making innovation key to maintaining relevance. Mubadala and the broader Abu Dhabi government have the impetus to take a leading role in scaling carbon markets.”
H.E. Ahmed Jasim Al Zaabi, Chairman of Abu Dhabi Global Market (ADGM), said: “As one of the first-fully regulated jurisdictions in the world to regulate carbon credits and offsets as environmental instruments in a voluntary market, ADGM is committed to playing a leading role in facilitating the transition to a lower carbon economy by stimulating sustainable finance flows of investments.”
According to McKinsey, the voluntary market for trading carbon credits could reach over $50 billion in 2030. With a functioning voluntary market companies across the world will be able to purchase credits on exchanges offering them and compensat for the emissions generated by their activity.