DFM Launches Pilot for Carbon Credits Trading at COP28

DFM Launches Pilot for Carbon Credits Trading at COP28

Dubai Financial Market (DFM) today announced the introduction of a pilot program for trading carbon credits, scheduled to debut at COP28. This move positions the financial market at the forefront of climate action as a regulated platform where project capital raising, carbon credit trading and safekeeping are explored in support of the UAE Government’s net zero by 2050 goal. 

The pilot will be an integrated platform to explore the trading and use of carbon credits, providing a mechanism to help companies manage unavoidable and residual carbon emissions while pursuing direct decarbonization strategies. Each carbon credit symbolizes a tangible reduction in carbon emissions, with one credit offsetting one ton of CO2 equivalent emissions. 

DFM will commence the pilot program for institutional investors who can buy and sell with trading starting from December 4th to December 8th, 2023, with the offsetting period ending on 10th January 2024.  The inaugural pilot will see the active participation of more than 17 esteemed UAE companies, including Dubai Electricity and Water Authority (DEWA), DP World, Dubai Municipality, Dubai International Financial Centre (DIFC), Emirates NBD, Majid Al Futtaim, SHUUA Capital, Al Ansari Financial Services, Emaar, Salik, SEE Holding, FIVE Holdings, Gulf Cryo and Tabreed among others.

 

DFM has worked