Oman-based Mashreq is the latest financial institution in the Mena market to take a step into the carbon trading market.
The firm has signed a memorandum of understanding with UAE-based fintech Fils to develop a carbon offsetting platform.
The blockchain-based platform will be made available to Mashreq’s corporate and institutional clients, allowing them to integrate the carbon offsetting service to their corporate accounts.
Mashreq appoints head of digital transformation
According to Mashreq, the platform addresses the accessibility challenge facing many corporates looking to offset their carbon investments with Fils acting as the interface with various carbon trading exchanges.
The platform is the first step in Mashreq’s plan to develop a suite of carbon-offsetting financial products with selected clients.
In recent months, the GCC’s carbon trading market has caught the attention of execution venues and trading firms alike.
Dubai Financial Market pilots carbon credits trading
A report published in March called for countries in the GCC to invest more in the infrastructure needed for functioning carbon trading markets.
And more recently, in November, UAE-based stock exchange Dubai Financial Market (DFM)Â launched a pilot programme for trading carbon credits.