Dubai launches pilot project for trading carbon credits

The Dubai Financial Market (DFM) has announced the launch of a pilot carbon credit trading program scheduled to debut at COP28. The move puts the financial market at the forefront of climate action as a regulated platform where project capital raising, carbon credit trading and escrow are explored in support of the UAE government's 2050 target. The pilot project will be an integrated platform to explore the trading and use of carbon credits and provide a mechanism to help companies manage essential and residual carbon emissions while pursuing direct decarbonisation strategies. Each carbon credit symbolizes a tangible reduction in carbon emissions, with one credit offsetting one tonne of CO2 equivalent emissions.