AirCarbon Exchange (ACX) is setting up the first regulated carbon trading exchange and carbon clearing house in Abu Dhabi Global Market (ADGM), and Mubadala has acquired a significant investment in the company

Distributed ledger technology is used by ACX, a worldwide environmental commodities trade. using distributed ledger technology to provide carbon credits as a security. Carbon credits can now be traded and financed by corporations in the same manner as other financial assets, encouraging more businesses and individuals to take part in and put money into worldwide programmes aimed at reducing and offsetting carbon emissions.

Mubadala is deploying capital in high growth areas that generate considerable change as part of its responsible investing and economic diversification mandate, with the goal of addressing some of the world's most pressing problems.

ADGM issued the proclamation during the inaugural Abu Dhabi Finance Week (ADFW), held between November 14th and 18th, 2022, in collaboration with major economic players in Abu Dhabi and a collection of international and regional financial institutions. Over the course of a week, attendees can engage in in-depth discussions about the MENA region's booming financial sector, as well as the latest advancements, innovations, and trends in global banking and financial markets.

"The UAE continues to be a leader in utilising the path to a lower carbon economy to conserve the environment, drive down emissions, and create lasting economic possibilities," stated H.E. Ahmed Jasim Al Zaabi, Chairman of Abu Dhabi Global Market (ADGM). Mubadala's investment in ACX is a powerful demonstration of its dedication to combating climate change by opening the door for progressive ecosystem of ADGM to accept voluntary purchases of verifiable emissions reductions in the form of carbon credits by investors and enterprises. The Abu Dhabi Global Market (ADGM) is "committed to playing a leading role in facilitating the transition to a lower carbon economy by stimulating sustainable finance flows of investments," as the market was "one of the first fully regulated jurisdictions in the world to regulate carbon credits and offsets as environmental instruments in a voluntary market."

"The UAE is pioneering the transformation of the financial ecosystem, and this investment is a testament to our role in contributing to it," said Badr Al Olama, Executive Director of UAE Clusters at Mubadala Investment Company, in commenting on the deal. We're showing that we can combine impact with investments that help decarbonize and diversify the UAE economy by backing Air Carbon Exchange, a company at the forefront of the emerging environmental commodities market.

"We are thrilled today to announce Mubadala's investment in ACX," Thomas McMahon, CEO & Co-Founder of ACX, said. It demonstrates Mubadala's faith in ACX's future success and affirms the team's dedication to building ACX and to furthering their and our shared goal of expanding the voluntary carbon market on a regional and global scale.

When it comes to licencing exchanges and clearing houses that run spot and derivatives markets, ADGM is the first jurisdiction to do so. This is because carbon credits and offsets are considered environmental products within the financial services industry. To further its dedication to constructing a forward-thinking and sustainable economy in line with the UAE Net Zero by 2050 Strategic Initiative, ADGM has achieved 'carbon neutrality' by offsetting its 2021 carbon emissions as an organisation.

Some of Mubadala's earliest investments in the energy transition and its subsequent influence on the environment date back to 2001. For Mubadala, this relationship represents both a forward step and a continuation of its long-term, strategic commitment to helping the United Arab Emirates hasten its energy transition and reach its goal of net zero emissions by the year 2050.

In the famous Voluntary Carbon Market Rankings published by Environmental Finance last year, ACX was named the Best Carbon Exchange. Carbon offsetting through UNFCCC Certified Emission Reductions (CERs) is something ACX began promoting in January 2022, when it joined with the UN Framework Convention on Climate Change (UNFCCC) to allow clients from 30 different nations to buy and retire CERs.