World’s first regulatory framework based mostly in Abu Dhabi for voluntary carbon markets elevates confidence
ABU DHABI, SINGAPORE, October 25, 2023 /EINPresswire.com/ —
• World’s first regulatory framework based mostly in Abu Dhabi for voluntary carbon markets elevates confidence
• First Abu Dhabi Financial institution (FAB) and Helix Local weather conduct first commerce on the change
• South Pole executes first over-the-counter transaction on Carbon Market Board
ACX (AirCarbon Exchange) proudly publicizes its change and clearing home in Abu Dhabi International Market (ADGM), ACX Abu Dhabi, is reside. Key trades have already been executed and settled on the platform, signifying the graduation of what’s anticipated to be a burgeoning marketplace for voluntary carbon markets (VCM).
ACX established its regional base in ADGM in August 2021 with the help of Hub71, Abu Dhabi’s world tech ecosystem. Hub71 is powered by Mubadala Funding Firm PJSC (Mubadala), an Abu Dhabi sovereign investor. Mubadala invested in ACX in September 2022 as a strategic step in line with its financial diversification mandate and dedication to accountable investing.
In September 2022, ADGM, the worldwide monetary centre of the UAE’s capital that’s established as a monetary free zone, grew to become the primary jurisdiction to manage voluntary carbon credit as monetary devices by means of the introduction of an Environmental Instrument classification, a regulatory framework to license exchanges and clearing homes for each spot and derivatives markets for these merchandise.
In November 2022, ACX Abu Dhabi grew to become the primary entity to be licensed beneath this framework, being the world’s first regulated Recognised Funding Exchange and Recognised Clearing House providing Environmental Devices in the type of carbon credit.
These regulatory licenses bolstered belief, safety, and investor safety for the buying and selling of carbon credit by mandating truthful and orderly buying and selling and real-time market surveillance, ensuing in heightened market integrity, transparency and environment friendly value discovery. ACX strictly adheres to consumer asset segregation, regulatory capital and audit necessities.
With funding secured and regulatory licenses authorized, ACX laid the groundwork to permit VCM contributors, for the primary time, to commerce carbon credit and different environmental devices beneath a capital markets regulatory framework.
The inaugural carbon credit commerce on the absolutely regulated change was executed between First Abu Dhabi Financial institution (FAB) and specialist carbon buying and selling firm Helix Local weather.
Sameh Al Qubaisi, Group Head of International Markets at First Abu Dhabi Financial institution, stated, “We’re delighted to execute the primary commerce on ACX Abu Dhabi. Because the UAE’s largest financial institution, we’re eager to help the enlargement and potential of carbon markets to offer value indicators that may assist corporations cut back or take away their greenhouse fuel emissions in essentially the most environment friendly approach.”
This follows a report launched by FAB in January 2023 which explored the chances to grab alternatives in carbon buying and selling as a method to combat local weather change whereas offering flexibility for companies in how they cut back their environmental influence.
Simon Harman, Founding Companion of Helix Local weather, stated, “Helix Local weather are proud to have transacted the primary commerce on ACX Abu Dhabi, the primary absolutely regulated carbon change. We share ACX’s imaginative and prescient to develop liquidity, transparency and confidence in the voluntary carbon markets and sit up for transacting extra quantity on the change.”
Arvind Ramamurthy, Chief of Market Growth at ADGM stated, “Final yr, ADGM welcomed the introduction of ACX, the primary regulated carbon credit score buying and selling change and clearing home in the world and right this moment we’re greater than thrilled to witness its reside launch. As we discover ourselves in a essential time with the event of worldwide carbon markets, this step marks a momentous milestone in the journey in direction of a thriving marketplace for voluntary carbon markets. We sit up for seeing ACX take on a pivotal position in not simply environmental devices but in addition in different markets and monetary devices, together with digital asset markets.”
“This marks one other vital step in bringing carbon credit nearer to the world of regulated commodities,” stated ACX’s Co-Founder and Co-CEO William Pazos. “ACX is proud to be the world’s first absolutely regulated spot carbon environmental change and clearing home. We’re equally honoured to be recognised for our skill to innovate and set off optimistic change in this critically vital sector.”
Additional enhancing its portfolio, ACX Abu Dhabi can be happy to announce the primary commerce on its Carbon Market Board (CMB) – an digital buying and selling facility that enables contributors to execute and settle over-the-counter transactions. The commerce was concluded with South Pole, the world’s main local weather undertaking developer and options supplier.
“By offering a regulated setting for carbon credit score trades, ACX helps to construct increased integrity carbon markets: each consumers and sellers have extra certainty due to the regulatory wrapper across the traded carbon credit and a market that’s scrutinised by an unbiased monetary providers authority. Belief will outcome in scale of local weather motion and influence, which is crucial right this moment,” stated Abderrahman Kasmi, Govt Director for Procurement & Buying and selling at South Pole.
Final month, ACX Group was awarded one of the best carbon change of 2023 by Environmental Finance. That is the third consecutive yr that ACX wins this prestigious award, a invaluable recognition of its skill to innovate and set off optimistic change in this very important discipline.
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Concerning the ACX Group:
ACX (AirCarbon Exchange) Group, together with ACX Abu Dhabi (ACX Ltd) and AirCarbon Pte. Ltd., which function environmental buying and selling platforms in Abu Dhabi and Singapore respectively, caters to corporates, monetary merchants, carbon undertaking builders and different business stakeholders. ACX Group offers contributors with an environment friendly and clear buying and selling platform that’s user-friendly, seamless and affords the bottom transaction charges in the market. Leveraging distributed ledger know-how, ACX facilitates and scales development of the environmental product markets to align with world ambitions of attaining Web Zero.
ACX Group is proud to be a member of the Worldwide Emissions Buying and selling Affiliation (IETA) and the Worldwide Sustainability and Carbon Certification (ISCC), additional enhancing its dedication to sustainability and accountable buying and selling practices for carbon and different environmental merchandise. ACX Group has garnered worldwide recognition because the Finest Carbon Exchange globally in Environmental Finance’s esteemed Voluntary Carbon Market Rankings for 3 consecutive years (2021, 2022, 2023), solidifying its place as a frontrunner in the business.
SUN Jie Ling
ACX
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Rajneesh Singh is a journalist at Asian News, specializing in entertainment, culture, international affairs, and financial technology. With a keen eye for the latest trends and developments, he delivers fresh, insightful perspectives to his audience. Rajneesh’s passion for storytelling and thorough reporting has established him as a trusted voice in the industry.
