UAE Mubadala Investment Company PJSC (Mubadala) has acquired a majority stake in Abu Dhabi based blockchain enabled AirCarbon Exchange (ACX), the global exchange revolutionizing the voluntary carbon market. ACX is building the first fully regulated carbon trading exchange and carbon clearing house in Abu Dhabi. This comes after Mubadala Capital led a Series B funding round of $70 million for Ramp Network, whose mission is to make Web3 a reality by enabling mainstream adoption of products and services offered by pioneering blockchain ventures.
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.
ACX is a global environmental commodities exchange that uses distributed ledger technology within a traditional commodity trading construct. It leverages blockchain architecture to create securitized carbon credits. This framework allows corporates to trade and finance carbon credits like conventional financial assets, increasing participation and investment in global carbon reduction and offset programs.
H.E. Ahmed Jasim Al Zaabi, Chairman of Abu Dhabi Global Market (ADGM), stated, “The UAE continues to be a leader in leveraging the path to a lower carbon economy to safeguard the environment, drive down emissions and create lasting economic opportunities. The investment by Mubadala in ACX is a great testament to the commitment toward climate action, which will enable investors and businesses to voluntarily purchase verified emissions reductions in the form of carbon credits within the progressive ecosystem of ADGM. ADGM is committed to playing a leading role in facilitating the transition to a lower carbon economy by stimulating sustainable finance flows of investments.”
Commenting on this transaction, Badr Al Olama, Executive Director of UAE Clusters at Mubadala Investment Company, added, “AirCarbon Exchange is set to be an important player within the international sustainable finance ecosystem, supporting the growth of environmental commodities, especially in light of the on-going impact of climate change globally. This transaction will strengthen the UAE’s competitiveness on the world stage, while driving forward a future-focused sector that is vital to the UAE’s decarbonization journey.”
William Pazos, Managing Director & Co-Founder of ACX said, “Carbon markets are growing at breakneck speed, making innovation key to maintaining relevance. Mubadala and the broader Abu Dhabi government have the impetus to take a leading role in scaling carbon markets. We are honored to form a partnership with them and look forward to the exciting years ahead.”
ADGM is the first jurisdiction globally to regulate carbon credits and offsets as spot commodities supported by the introduction of environmental instruments as financial instruments, and to license carbon exchanges and clearing houses that operate both spot and derivatives markets.
