First Abu Dhabi Bank (FAB) partnered with environmental asset developer Blue Carbon and with green energy firm Masdar to develop and to venture in carbon trading market of Middle East and North Africa (MENA) region on Monday.
The bank signed a memorandum of understanding (MoU) with Blue Carbon and Masdar for supply of high-quality carbon credits.
Carbon credit trading is a system where companies buy and sell carbon credits, where companies get carbon credits based on its emission. In simple terms, if a company reduces its emissions, it earns credits, while the contrary leads to buying credits from other firms. This is aimed to balance and reduce overall carbon emissions globally.
Earlier, the bank said it introduced FAB carbon trading desk, providing carbon trading and financial option, as well as strategic carbon-related transactions. Abu Dhabi based also promotes development of high-quality carbon credits, offsets for corporate and investment banking clients.
FAB said it will be the first regional bank to have both compliance market including the EU Allowances (EUA) and UK Allowances (UKA) as well as voluntary carbon market. It is also the first regional bank to offer EUA cash and carry notes, while it also offers forward carbon credit purchase-structured solutions to local as well as international clients.
FAB carbon desk said it traded in a global digital exchange of environmental market, AirCarbon Exchange (ACX) in Abu Dhabi. The carbon desk is said to be in process with UAE entities to build a voluntary carbon ecosystem and is also in exposure to change in European Union’s Emissions Trading System.
