Skip to content Skip to Search
Skip navigation

DFM to launch pilot for trading carbon credits

By Pramod Kumar
Drake & Scull's trading ceased in November 2018 when the company disclosed losses exceeded 75 percent of its capital Wam
Drake & Scull's trading ceased in November 2018 when the company disclosed losses exceeded 75 percent of its capital

Dubai Financial Market (DFM), the operator of the Dubai stock exchange, will launch a pilot programme for trading carbon credits during Cop28.

The pilot programme for institutional investors starts from December 4 to 8, 2023, with the offsetting period ending on January 10, 2024, the UAE state-run Wam news agency reported. 

The inaugural pilot will see the participation of more than 17 UAE companies, including Dubai Electricity and Water Authority (Dewa), DP World, Dubai Municipality, Dubai International Financial Centre, Emirates NBD, Majid Al Futtaim, Shuua Capital, Al Ansari Financial Services and Emaar among others. 

The transactions will be executed through five DFM brokers – Al Ramz Capital, Arqaam Securities, BHM Capital, EFG Hermes and Emirates NBD Securities. 

Clearing and settlement processes will be handled in US dollars by Dubai Clear and the Dubai Central Securities Depository, with global daily price reference provided by pricing agencies such as Opis, a Dow Jones company.

The carbon credits traded on DFM will be supplied from Dewa and MyCarbon from internationally certified carbon projects worldwide. 

All projects have been verified by standard setters such as Verra or the UN’s Clean Development Mechanism. 

Quality carbon credits from local Dewa projects will be offered at the pilot.

Hamed Ali, CEO of DFM and Nasdaq Dubai, said: “The launch of carbon credit trading represents a logical progression for DFM as a platform for ESG-focused themes and building on our existing track record.”

As the global economy accelerates its decarbonisation, the demand for carbon project financing is poised to surge, and the need for trade credits will grow in tandem, he added.

Dawood Abdulrahman AlHajri, director general of Dubai Municipality, said the carbon credits trading platform will play a vital role in achieving climate neutrality by 2050, unlocking new opportunities for sustainable development and consolidating Dubai’s position as a centre for green economy innovations and opportunities.

UAE will host Cop28 at Expo City Dubai from November 30 to December 12, 2023.

Latest articles

STC wants to consolidate the mobile tower market

STC approves PIF purchase of telecom company

Shareholders of Saudi telecom giant STC have approved plans to create a new telecommunications infrastructure company in which the Public Investment Fund will have a 51 percent stake valued at SAR8.7 billion ($2.3 billion).  Under the deal, the STC-owned Telecommunication Towers Co. Limited (Tawal) will become a PIF subsidiary through a merger with Golden Lattice […]

Flavio Cattaneo of Enel, of which Endesa is a subsidiary, and Mohamed Jameel Al Ramahi at the signing of the deal

Masdar buys stake in Spanish utilities company Endesa

The UAE’s state-owned clean energy company Masdar has agreed to acquire a minority stake in Spanish electric utility business Endesa to partner for 2.5 gigawatts (GW) of renewable energy assets in Spain. Under the agreement, subject to regulatory approval, Masdar will invest nearly $890 million to acquire a 49.99 percent stake in Endesa, with an […]

UAE markets Hong Kong

UAE capital markets partner with Hong Kong exchange

The Hong Kong Stock Exchange (HKSE) has added the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM) to its roster of recognised marketplaces. The move opens the door for UAE-based companies to pursue secondary listings on one of Asia’s premier financial markets. It also follows the inclusion of the Saudi Exchange (Tadawul) […]

Person, Worker, Adult

Aramco and PIF invest in Saudi-Chinese steel venture

Saudi Aramco and the Public Investment Fund have doubled their investment in a steel plate joint venture with a Chinese company to $500 million. The two Saudi companies each own 25 percent shares in the new venture in Ras Al Khair industrial city, Bloomberg reported, quoting a statement published on the Chinese stock exchange. Chinese […]