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Mubadala Investment Company and AirCarbon Exchange (ACX) have successfully completed a transaction whereby Mubadala acquired a strategic stake in ACX to support the establishment of the first fully regulated carbon trading exchange and carbon clearing house in Abu Dhabi .
Based in Hub71, ACX is a global environmental commodities exchange that uses distributed ledger technology to leverage blockchain architecture to create securitized carbon credits, Wam news agency reported.
The framework allows companies to trade and finance carbon credits like traditional financial assets, increasing participation in and investment in global carbon reduction and offsetting schemes.
Mubadala said that as part of its mission of responsible investment and economic diversification, Mubadala is investing in commercially attractive solutions to the world’s greatest challenges and deploying funds purposefully in A high-growth sector driving major change.
The announcement was made during the first Abu Dhabi Financial Week (ADFW), organized by Abu Dhabi Global Market (ADGM) from 14-18 November, in conjunction with key economic drivers of the Abu Dhabi economy and a group of Global and regional financial institution partnerships.
The week-long event is a platform for in-depth dialogue around the MENA region’s burgeoning financial sector, industry trends, financial markets and developments and innovations in global banking.
The agreement was signed by Badr Al Olama, Executive Director, Mubadala UAE Cluster;
Dhaher Bin Dhaher, CEO of ADGM Registry; William Pazos, Managing Director and Co-Founder of ACX, Ahmed Jasim Al Zaabi, Chairman of ADGM; and Musabbeh Al Kaabi, CEO of Mubadala Emirates Investment Company.
In response, Al Zaabi commented: “The UAE continues to lead the way in harnessing a low-carbon economy to protect the environment, reduce emissions and create lasting economic opportunity. Mubadala’s investment in ACX is a good testament to the commitment to climate action, which will enable investors and businesses to voluntarily purchase verified emission reductions in the form of carbon credits within ADGM’s progressive ecosystem.”
Commenting on the deal, Al Olama said: “The UAE is leading the transformation of the financial ecosystem and this investment is a testament to our contribution. By investing in ACX and pioneering the future of environmental commodities, we demonstrate that we will impact and support The UAE’s combined ability to decarbonise its economy and diversify investments.”
ACX CEO and Co-Founder Thomas McMahon commented: “We are proud to announce Mubadala’s investment in ACX today. It represents Mubadala’s confidence in ACX’s growth potential and validates the team’s commitment to developing The hard work done by ACX, and our shared commitment to expand regional and global voluntary carbon markets.”
Mubadala’s commitment to energy transition and climate impact began in 2001 with some foundational investments. This partnership is a step forward and a continuation of Mubadala’s strategy and long-term support to accelerate the UAE’s energy transition and achieve net-zero emissions by 2050.
Last year, ACX was recognized as the best carbon exchange in Environmental Finance’s prestigious voluntary carbon market rankings. In January 2022, ACX partnered with the United Nations Framework Convention on Climate Change (UNFCCC) to facilitate carbon offsets through UNFCCC Certified Emission Reductions (CERs), allowing customers representing 30 different countries to purchase and retire CERs for carbon offsets Purpose.
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