UAE signs deal to develop carbon credit system on Venom Foundation blockchain

The United Arab Emirates Ministry of Climate Change and Environment (MCCE) is developing a carbon credit system in a preliminary partnership with the Industrial Innovation Group and the Venom Foundation.

Blockchain technology is utilized by organizations and countries to track carbon credits. Due to the immutable nature of data inscribed on-chain, these credits can be securely sold or traded with total transparency for all interested parties.

This allows government organizations, such as the UAE’s MCCE, to sell or issue credits to businesses. Credit holders can either spend the credits — which allows them to emit a specific amount of carbon over a given period of time — or sell and trade them to other organizations looking to offset their own emissions.

Related: Kenya partners with Abu Dhabi’s Venom Foundation to build blockchain, Web3 hub

UAE leaders recently announced changes to the country’s agenda concerning climate change and carbon offsetting. Ultimately, the goal is to achieve carbon neutrality by 2050.

According to a local news report, UAE Minister of Climate Change and Environment Mariam Al Mheiri says this has contributed to a positive update to the country’s roadmap for reducing emissions:

“The UAE believes in its ability to make a difference in this field and has pledged, through the third update of its second Nationally Determined Contributions, to reduce its emissions by 40 per cent compared to a business-as-usual scenario, an increase of 9 per cent over its previous pledge.”

While the UAE ranks 33rd globally for total emissions, analysis from the same report shows that it ranks sixth globally per capita, according to data from 2020.

In addition to the renewed push to reduce carbon emissions at the national level, each of the UAE’s seven emirates has unveiled local programs to keep in line with the “net zero by 2050” pledge, including a comprehensive program in Abu Dhabi recently approved by the Crown Prince Sheikh Khaled bin Mohamed bin Zayed.