The alliance’s founding members include AirCarbon Exchange (ACX), First Abu Dhabi Bank (FAB), Mubadala, TAQA and Masdar, in addition to UICCA. Image Credit: Shutterstock

Abu Dhabi: The UAE Carbon Alliance, a new coalition of partners dedicated to advance the development of a carbon market ecosystem, was launched on Wednesday by the UAE Independent Climate Change Accelerators (UICCA).

The UICCA, an Abu Dhabi Global Market (ADGM) registered non-governmental organisation, is a think tank and accelerator supporting the nation’s transition to a green economy.

Chaired by Sheikha Shamma bint Sultan bin Khalifa Al Nahyan, the UAE Carbon Alliance comprises leading organisations recognising the importance of carbon credits to achieve net zero goals. The alliance’s founding members include AirCarbon Exchange (ACX), First Abu Dhabi Bank (FAB), Mubadala Investment Company (Mubadala), Abu Dhabi National Energy Company (TAQA) and Abu Dhabi Future Energy Company (Masdar), in addition to UICCA.

The Carbon Alliance looks to establish national cooperation in decarbonisation efforts, develop innovative standards and frameworks for constructive carbon financing, increase education and knowledge of carbon markets, and support organisations on greenhouse gas emission reduction projects. The establishment of a resilient, transparent, and high-quality carbon market will direct investment and capital towards projects that support decarbonisation, while providing corporations with a market-based mechanism to accelerate their transition journey and achieve reduction targets.

Sheikha Shamma bint Sultan bin Khalifa Al Nahyan, President & CEO of UICCA, commented: “Carbon reduction is both fundamental and non-negotiable for the health of our planet. To reach Net Zero, we must actively reduce our emissions across all sectors, and it is imperative that public and private sectors take active steps to reduce emissions. Productive partnerships like the UAE Carbon Alliance will help the world find practical solutions on the path to decarbonisation, by funding the actual physical carbon abatement efforts and making them financially, environmentally, and socially viable. The UAE Carbon Alliance will establish the UAE as a leading hub for high integrity, high quality carbon markets, to help fund the much-needed action to limit global warming to 1.5 degrees.”

In line with the UAE Net Zero by 2050 Strategic Initiative, the United Nations Framework Convention on Climate Change (UNFCCC), and terms laid out in the Paris Agreement, the UAE Carbon Alliance will facilitate inclusive dialogue between all stakeholder groups to promote a robust framework and action plan for implementing a carbon market in the UAE. The alliance will convene its first executive committee meeting with all its founding members this week.