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DUBAI, Nov 16 (Reuters) – Abu Dhabi state fund Mubadala Investment Company confirmed on Wednesday that it has acquired a strategic stake in Singapore-based AirCarbon Exchange (ACX).
Two people familiar with the matter had earlier revealed the deal to Reuters.
In February, AirCarbon partnered with Abu Dhabi’s financial free zone, Abu Dhabi Global Market (ADGM), to establish the capital’s first regulated carbon trading exchange and clearinghouse.
The Mubadala takeover supports the oil-rich emirate’s plans to create an exchange that would allow companies to trade and finance carbon credits, the sources said. The sources declined to be named as the matter is private.
Mubadala confirmed the acquisition when contacted by Reuters, while ACX did not immediately respond to a request for comment.
Emissions trading schemes or carbon markets are market-based instruments aimed at limiting greenhouse gas emissions. They set caps on how much a country or company can emit, and if those limits are exceeded, they can buy permits from others.
Mubadala holds at least a 20% stake in AirCarbon and that AirCarbon has started building a team in Abu Dhabi and has received regulatory approval from ADGM, one of the sources said.
The UAE, an OPEC member, announced its commitment to net-zero emissions by 2050 last October.
Reporting by Hadeel Al Sayegh; Editing by Elaine Hardcastle
Our standards: Thomson Reuters Trust Principles.
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