The UAE is taking strategic steps to bolster its regional and global position in the voluntary carbon market, aligning with its goal of achieving carbon neutrality by 2050, according to the Abu Dhabi-based Interregional Center for Strategic Analytics.
The voluntary carbon market, a platform where companies and individuals trade carbon credits to offset unavoidable emissions, is expected to experience significant growth. Boston Consulting Group estimates the market could be worth $10 billion to $40 billion regionally by 2030, while global valuations may surpass $50 billion during the same period.
The UAE has launched several initiatives to enhance its role in carbon trading. One notable effort is the experimental carbon credit trading platform launched by the Dubai Financial Market during the COP28 conference, designed to facilitate the financing of environmental projects.
In September 2023, the UAE Carbon Alliance committed $450 million towards purchasing African carbon credits to strengthen ties between UAE and African carbon markets. Additionally, Abu Dhabi’s AirCarbon Exchange, the first fully regulated carbon trading platform in the region, has streamlined the buying and selling of credits for companies.
Abu Dhabi Global Market (ADGM) has taken a pioneering step by treating carbon credits as financial instruments, ensuring greater transparency and trust in the market. All credits traded across UAE platforms are verified by globally recognized rating bodies to maintain credibility.
To further regulate greenhouse gas emissions, the UAE issued a ministerial decision mandating large companies to monitor and report their emissions. The National Carbon Credit Registry was also established to promote trading and support environmental conservation and sustainable development projects.
Interregional emphasized that these measures reflect the UAE’s commitment to fostering a reliable and transparent carbon trading market, directing funds toward sustainability and reinforcing its leadership in the global transition to a low-carbon future.
