Abu Dhabi Global Market (ADGM) has approved the launch of AirCarbon Exchange (ACX) which claims to be the world’s first regulated carbon exchange and clearing house.
The move is set to make Abu Dhabi the first jurisdiction to regulate carbon credits as offsets as emission instruments and to issue licenses for exchanges to operate both spot and derivative markets.
According to ADGM, the regulatory framework will enable corporates to trade and finance carbon credits like conventional financial assets.
ACX is expected to launch later this year as a recognised investment exchange and recognised clearing house offering trading, custody, clearing and settlement of carbon credit derivatives.
The company plans to use distributed ledger technology to create tokenised carbon credits for spot trading. A second stage of its development will focus on carbon credit futures.
ACX already has exchanges in Singapore and Brazil and recently secured an investment from Deutsche Boerse subsidiary European Energy Exchange.
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