The long-awaited carbon credit trading pilot of Dubai Financial Market (DFM) will go live today, debuting on the COP28.
Institutional investors will be able to buy and sell from today, December 5, until December 11, 2023, with the compensation period ending on January 10, 2024.
The inaugural pilot will see the active participation of over 24 esteemed UAE companies and project developers, including Dubai Electricity and Water Authority (DEWA), DP World, Dubai Municipality, Dubai International Financial Center ( 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 closely with Dubai Future Foundation as a pilot partner. The transactions will be executed through six brokers of DFM, namely Al Ramz Capital, Arqaam Securities, BHM Capital, EFG Hermes Emirates NBD Securities and FAB Securities. Clearing and settlement processes will be handled in USD by Dubai Clear and the Dubai Central Securities Depository (Dubai CSD), with global daily price reference provided by leading pricing agencies such as OPIS, a Dow Jones company.
Carbon credits traded on DFM will be supplied by DEWA, First Abu Dhabi Bank and MyCarbon, sourced from internationally certified carbon projects around the world. All projects have been verified by widely recognized standards bodies such as VERRA or the United Nations Clean Development Mechanism (CDM).
This strategic initiative places the financial market in a leading role in climate action, serving as a regulated platform to explore project capital raising, carbon credit trading and custody, all in line with the goal of zero net emissions by 2050 of the UAE Government.
News source: Dubai Press Office