Dubai: A Dubai-based company, HBK DOP, is part of a new initiative that will launch an online carbon credit exchange in Africa, where transactions will be collated using blockchain technology. The other partners are Nexum Foundation and The Climate Group Africa, based in Kenya.
The initiative – Carbon Exchange Africa – will notably try to create carbon credit programs for the maritime and oil industries. “Shipping is considered a major polluter – this may not be a fair characterization given that it facilitates more than 80% of global trade,” said Panagiotis Georgolios, founder of the Nexum Foundation. “Either way, the shipping industry will need carbon credits.
“This initiative allows the foundation to occupy a strategic position in the carbon credit industry and supports our mission to promote the process of tokenization of assets and services with tangible economic fundamentals and value offers in the maritime world. “
The three will develop an online carbon credit exchange that will serve as an “exclusive market channel” for carbon credits issued to The Climate Group Africa through its activities. Their objective is, through this new platform, to “facilitate and promote the process of tokenization of the carbon credit industry”.
HBKDOP – which stands for Hamad Bin Khalifa Department of Projects – was launched to undertake sustainability-themed projects in the region and beyond. Recently, Abu Dhabi Global Market announced that it is taking the initiative to launch the first exchange in the Middle East that will deal in carbon credits.
Making those carbon credits work
By using a carbon credit, the owner can emit a certain amount of carbon dioxide or other greenhouse gases. One credit allows the emission of one tonne of carbon dioxide or the equivalent in other greenhouse gases.
HBK DOP has its main interests in the field of infrastructure, related to projects in the fields of energy and agriculture as well as financial services. The renewable energy sector is of “particular interest”.
“We focused on a variety of projects, including those that actively eliminate emissions,” said Anwar Hussein, CEO of HBK DOP Group. “Supporting the science-based approach to the future of carbon with our mutual partners provides a vital element, traceability and transparency.”