UAE’s Emirates NBD introduces compliant carbon market trading

UAE’s Emirates NBD introduces compliant carbon market trading

Emirates NBD has launched carbon future contracts trading, addressing the growing demand from corporations to manage their carbon emissions offsetting. The bank’s carbon future contracts trading facility also gives clients access to a rapidly growing asset class with an estimated value of Dhs850bn across six global emission trading schemes. ’s carbon contract trading is aligned with the guidelines set by the EU and UK’s emission trading systems (ETS), providing full transparency, credibility and accountability. The ETS’ follow the ‘cap and trade’ system whereby companies are given a limit or ‘cap’, on the amount of greenhouse gases they can emit. If a company exceeds its limit, it is required to buy permits, called allowances, from others who have emitted less. This approach incentivises companies to reduce their emissions and promotes a shift towards cleaner technologies and practices to combat climate change. The UAE government is supporting the growth of carbon trading markets with plans to launch regulated carbon credit trading exchanges and clearing houses ahead of COP28. The nation is also observing 2023 as the Year of Sustainability, under the theme ‘Today for Tomorrow’. The launch of trading capability in compliance carbon markets will also enhance corporate access to sustainability-linked finance