Abu Dhabi based sovereign wealth fund, Mubadala Investment Company (“Mubadala”) and AirCarbon Exchange (“ACX”), the global exchange changing the voluntary carbon market, have successfully completed a transaction under which Mubadala has acquired a strategic stake in ACX, supporting ACX’s establishment of the first fully regulated carbon trading exchange and carbon clearing house in the Abu Dhabi Global Market (“ADGM”).
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. ACX has recently been granted Recognition Orders by the Financial Services Regulatory Authority (FSRA) to operate as a Recognised Investment Exchange (RIE) and as a Recognized Clearing House (RCH) in ADGM.
Baker McKenzie acted as legal counsel to ACX on the successful transaction. The deal was led by partners Osama Audi and Reggie Mezu.