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Abu Dhabi’s Mubadala confirms acquisition of ‘strategic’ stake in AirCarbon

November 18, 2022
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Value of deal undisclosed; investment to support decarbonization efforts 

Abu Dhabi wealth fund Mubadala Investment Co. has acquired a strategic stake in AirCarbon Exchange (ACX), a carbon trading exchange operator that has offices in the UAE and Singapore.

The transaction has just been completed and will support efforts towards the “decarbonization and diversification” of the UAE economy, according to a statement on Thursday. With Mubadala’s investment, companies and investors can opt to purchase carbon credits on the Abu Dhabi Global Market (ADGM).

ACX allows businesses to trade and finance carbon credits like conventional financial assets. The environmental commoditie exchange creates securitized carbon credits through blockchain technology.

Mubadala did not disclose the value and size of the deal, but according to earlier reports, the sovereign fund was looking to acquire at least a 20% stake.

“The investment by Mubadala in ACX is a great testament to the commitment towards climate action, which will enable investors and business to voluntarily purchase verified emissions reductions in the form of carbon credits within the progressive ecosystem of ADGM,” said Ahmed Jasim Al Zaabi, Chairman of ADGM.

Businesses that are looking to reduce or offset their emissions have the option to purchase carbon credits. As of the third quarter of 2022, the value of the voluntary carbon market (VCM) has reached $2 billion, quadrupling from the $520 million transactions recorded in 2020, according to a report by Ecosystem Marketplace.

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