World’s First Fully Regulated & DLT-Based Carbon Exchange to Launch in Abu Dhabi

Abu Dhabi Global Market (ADGM), the International Financial Centre in Abu Dhabi announced today that it will partner with AirCarbon Exchange (ACX) to create a fully regulated carbon exchange and clearinghouse – the first of its kind in the world.

The regulatory framework, overseen by the ADGM, will allow companies to trade and finance carbon credits like conventional financial assets.

When launched, ACX will be registered as a Recognised Investment Exchange (RIE) and will be regulated by the ADGM. As well as this, ACX plans to establish a Recognised Clearing House (RCH) to custody, clear, and settle commodities and commodity derivatives.

ACX has said that it initially intends to use its DLT-based technology to create tokenized carbon credits for spot trading, with a view to extending its offering to carbon credit futures as commodity derivatives for trading at a later date.

Ahmed Jasim Al Zaabi, Chairman of ADGM, said that the “new trading platform is a further extension of Abu Dhabi’s drive to support sustainability ambitions and underlines ADGM’s focus on carbon neutrality as an international financial center.”

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Just last week, ACX also announced that it had received a “substantial investment” from Deutsche Börse AG, the parent company of European Energy Exchange AG.