DFM to pilot carbon credits trading at COP28: The Dubai Financial Market (DFM) is planning to roll out a carbon credit trading program at COP28, DFM said in a statement last week. The inaugural program will be a trial run for DFM to look into the prospects for trading carbon credits on the securities market.

About the pilot program: The DFM will introduce the program for institutional investors to trade in the carbon credits between 4-8 December, with the offsetting period — when traders price the carbon credits — ending on 10 January.

Who are the traders: Dubai Electricity and Water Authority (Dewa) and MyCarbon will be responsible for bringing in carbon credits from UN or VERRA -accredited carbon projects worldwide.Over 17 Emirati companies will take part in the program, including DP World, Dubai Municipality, Dubai International Financial Centre (DIFC), Emirates NBD, Majid Al Futtaim, SHUAA Capital, Al Ansari Financial Services, Emaar, Salik, Gulf Cryo, and Tabreed, among others.

The transactions will be arranged by five DFM brokers: Al Ramz Capital, Arqaam Securities, BHM Capital, EFG Hermes, and Emirates NBD Securities.

What they said: “Capital markets play a pivotal role in driving the development of a low carbon economy by facilitating project capital raising, enhancing price discovery and transparency, and centralizing liquidity. 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,” Hamed Ali, DFM and Nasdaq Dubai CEO said.

The UAE is making good on its carbon trading goals: Emirates NBD, one of the institutional investors, revealed this year that the UAE government is looking to launch carbon credit trading exchanges and clearing houses ahead of COP28, the bank said in a statement.

IN OTHER CLIMATE FINANCING NEWS-

Mashreq + partners to roll out first climate banking platform in MENA: Our friends at Mashreq are collaborating with Visa and sustainability solutions firm Ecolytiq to launch the first climate banking platform in the UAE and the region, according to a statement.

How will it work? The novel climate banking platform will calculate the carbon emissions resulting from their transactions with the transaction data to give customers an estimate of the environmental impact of their purchases. The platform will provide customers with a clear view of their carbon footprint which will help with individual environmental behavior and a collective positive impact for Mashreq customers.

What they said: “This collaboration represents another endeavor within Mashreq’s Climb2Change initiative, which showcases the bank’s commitment to sustainability through a variety of ESG initiatives. With advanced carbon footprint analytics, the platform personalizes climate insights to customers to educate and encourage climate action. These products are designed to promote climate-positive behaviors while delivering tangible impact for Mashreq customers,” Fernando Morillo, Group Head of Retail Banking at Mashreq, said.

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