Abu Dhabi sovereign investor, Mubadala Investment Company has reached an agreement with Singapore-based AirCarbon Exchange (ACX) in order to acquire a strategic stake in ACX.
AirCarbon Exchange is a global environmental commodities exchange that uses distributed ledger technology, leveraging blockchain architecture to create securitized carbon credits.
This framework allows corporates to trade and finance carbon credits like conventional financial assets, increasing participation and investment in global programs for carbon emission reduction and offset.
The announcement was made during the first edition of Abu Dhabi Finance Week (ADFW) 2022. The week-long event serves as a platform for in-depth conversations around the Mena region’s thriving financial sector, industry trends, developments, and innovation involving financial markets and global banking.
“The UAE continues to be a leader in leveraging the path to a lower carbon economy to safeguard the environment, drive down emissions and create lasting economic opportunities. The investment by Mubadala in ACX is a great testament to the commitment towards climate action, which will enable investors and businesses to voluntarily purchase verified emissions reductions in the form of carbon credits within the progressive ecosystem of ADGM. As one of the first-fully regulated jurisdictions in the world to regulate carbon credits and offsets as environmental instruments in a voluntary 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.”
Commenting on this transaction, Mr. Badr Al Olama, Executive Director of UAE Clusters at Mubadala Investment Company, said that, “The UAE is spearheading the transformation of the financial ecosystem, and this investment is a testament to our role in contributing to it. By investing in Air Carbon Exchange and pioneering the future of environmental commodities, we demonstrate our ability to combine impact with investments that support both the decarbonization and diversification of the UAE economy.”
“We are honored today to announce Mubadala’s investment in ACX. It represents Mubadala’s confidence in the growth potential of ACX and validates the hard work the team has committed into developing ACX and our joint commitment going forward to scaling the voluntary carbon market both in the region and globally,” commented Mr. Thomas McMahon, CEO & Co-Founder of ACX.