According to Bloomberg, Abu Dhabi National Oil Company (ADNOC), the top oil producer in the United Arab Emirates (UAE), is establishing a department to engage in carbon credit trading, in anticipation of a future where corporations are responsible for their environmental impact. This development is timely, as the UAE is scheduled to host COP28, the United Nations’ upcoming climate change conference, in Dubai this November.
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Based on information from two individuals familiar with the matter, ADNOC plans to generate carbon credits from its own initiatives to reduce emissions, as well as those of other sectors operating within the UAE.
As per the sources who wished to remain anonymous to discuss operational details, the carbon credits would be offered to neutralize any potential carbon taxes imposed on exported goods that contribute to carbon emissions.
In response to the shift away from conventional energy sources by buyers, Gulf oil producers such as Saudi Arabia, the leader of OPEC, and the UAE are creating carbon trading markets to promote environmentally sustainable economies.
The UAE’s Abu Dhabi and Dubai, as well as Saudi’s capital city of Riyadh, are seeking to entice businesses and financial institutions to participate in the emerging markets.
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