UAE Carbon Alliance looks to establish national cooperation in decarbonization effort

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

Chaired by Sheikha Shamma bint Sultan bin Khalifa Al Nahyan, the UAE Carbon Alliance is comprised of leading organizations recognizing the importance of carbon credits to achieve net zero goals.

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On the occasion, Sheikha Shamma who is the 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 decarbonization, 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.”

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

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.

Bringing together key market participants from across the UAE, the Carbon Alliance looks to establish national cooperation in decarbonization efforts, develop innovative standards and frameworks for constructive carbon financing, increase education and knowledge of carbon markets, and support organizations 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 decarbonization, while providing corporations with a market-based mechanism to accelerate their transition journey and achieve reduction targets.

Inclusive dialogue

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 UAE Carbon Alliance will convene its first executive committee meeting with all its founding members this week.

The UICCA will play a significant role, guiding the deployment of carbon credit solutions in the region by facilitating stakeholder collaboration across the public and private sector, as well as acting as the secretariat of the Alliance.

The outcomes from the UAE Carbon Alliance will inform and drive government strategies while bringing greater alignment between the private and public sector. The Alliance will represent buyers and sellers of carbon credits, traders, climate project developers, financial institutions, corporations, exchanges, and brokers from across the UAE and beyond.

To facilitate sector-wide dialogue across all industries and the development of a robust carbon market framework, organizations that are committed to driving forward the nation’s decarbonization agenda are welcome to join and collaborate with the UAE Carbon Alliance, according to the press release from UICCA.

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