HomeCarbon CreditsAbu Dhabi Becomes First Carbon Neutral International Financial Center

Abu Dhabi Becomes First Carbon Neutral International Financial Center

The Abu Dhabi Global Market (ADGM) is the first international financial center in the world to be carbon neutral. They achieved this goal through the use of carbon credits.

What are carbon credits? How did carbon credits help ADGM become carbon neutral?

If you are not sure what carbon credits are, they are pretty simple to understand.

One carbon credit equals one metric ton of carbon. So, for every carbon credit purchased on a carbon exchange, one metric ton of carbon is offset through an environmental project.

This is how ADGM achieved carbon neutrality. They bought and sold all of their 2021 carbon credits for a highly-rated global project.

The project was based in Indonesia.

ADGM used AirCarbon Exchange for this transaction. They are located in ADGM Square.

Where does the UAE stand on climate change? Have they made any commitments?

According to His Highness Sheikh Mohammed bin Rashid Al Maktoum, VP, PM, and Ruler of Dubai, the UAE is committed to fighting climate change.

In 2021, the UAE announced its Net Zero 2050 Strategic Initiative. The goal is to “drive development, growth and new jobs [as we] pivot our economy and nation to net zero.”

To help achieve this goal, the UAE has invested over AED600 billion in renewable energy.

ADGM wants to help the UAE meet its Net Zero 2050 Strategic Initiative. Here’s what else ADGM is doing.

Now in its fourth year, ADGM transformed the Abdo Dhabi Film Festival (ADFF) into a carbon-neutral platform and event.

Per ADGM, “This year’s #ADFF leads by example as a “carbon neutral” event and as part of its commitment towards the UAE’s carbon neutral “Net-Zero initiative.”

ADGM chairman Al Zaabi said that ADGM will keep fostering meaningful relationships with local and global businesses to play its “part in supporting the UAE’s Net-Zero by 2050 Strategic Initiative.”

With ADGM at the helm, fifty-nine members are currently a part of Abu Dhabi Sustainability Week. Eighteen new members have joined this year.

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