ADNOC plans to start trading carbon credits

ADNOC plans to start trading carbon credits

The largest oil producer in the UAE is setting up a desk to trade carbon credits as it prepares for a world in which companies are held to account for the pollution they produce. Abu Dhabi National Oil Co. (ADNOC) intends to create the credits from its own emissions-reduction projects as well as those of other industries in the country, according to two people with knowledge of the matter. The credits would then be available to offset potential carbon taxes levied on exported products that contribute to emissions, according to the people who asked not to be identified discussing operational matters. Oil producers like the UAE and OPEC leader Saudi Arabia are establishing carbon trading markets due to the need for greener economies as buyers move away from traditional energy sources. Abu Dhabi and Dubai in the UAE and the Saudi capital of Riyadh are looking to attract companies and banks to develop and trade in the nascent markets. The new carbon desk is part of Adnoc Trading, established in 2020 as a wholly owned subsidiary of the government oil firm, and deals in crude and liquefied natural gas. Aleksi Parkkila joined Adnoc Trading from Trafigura Group in January to