The UAE is positioning itself to become a key player in the regional and global voluntary carbon market, capitalizing on investment opportunities linked to its 2050 net-zero strategy, according to the Abu Dhabi-based Interregional Center for Strategic Analytics.  

The regional voluntary carbon market, which allows companies and individuals to trade carbon credits to offset unavoidable emissions, is expected to experience significant growth over the next five years. 

The market is projected to reach a value between $10 billion and $40 billion by 2030, according to the Boston Consulting Group, with global estimates exceeding $50 billion over the same period.  

Interregional highlighted several ambitious UAE projects designed to enhance its role in carbon trading. Notably, the Dubai Financial Market launched an experimental carbon credit trading platform during the COP28 conference to facilitate financing for environmental projects.  

In September 2023, the UAE Carbon Alliance, comprised of companies committed to purchasing $450 million worth of African carbon credits, was launched to strengthen ties between the UAE and African carbon markets.  

Abu Dhabi is home to the AirCarbon Exchange, the first fully regulated carbon trading exchange, facilitating buying and selling for companies. The Abu Dhabi Global Market (ADGM) has also become the first regulator to classify carbon credits as financial instruments, boosting market transparency.  

These platforms enable carbon credit trading between buyers and sellers, allowing companies with surplus credits to sell them to those needing to offset their emissions. All traded credits are verified by globally recognized rating bodies to ensure credibility.

This system helps direct funds towards environmental conservation and sustainable development projects while enhancing the reliability of carbon trading.  

Interregional further noted that the UAE has issued a ministerial decision mandating large companies to monitor and report their emissions and established the National Carbon Credit Registry to promote trade within a regulated framework.