FAB Publishes Paper on the Possibilities of Carbon Trading
First Abu Dhabi Bank (FAB), the largest bank in the United Arab Emirates (UAE) and considered to be one of the world's largest and safest financial institutions, has recently launched a report which examines the potential of carbon trading as a way to reduce greenhouse gas emissions and mitigate the effects of climate change.
The report, titled 'Seizing the Carbon Trading Opportunity,' presents an outline of how carbon trading and carbon markets work to dispel public misconceptions. The paper also considers the trading system's viability as a potential game changer in the fight against climate change.
The report presents several compelling situations and scenarios in which carbon markets might give companies with economic incentives to lessen their environmental footprint, such as offsetting unavoidable emissions against credits or projects that absorb carbon elsewhere in the world.
The detailed report also says that there are still a lot of important questions about how carbon's potential can be used. The analysis does, however, show how technology and money would be needed to fully use carbon markets as a solution, making sure that they are at the forefront of climate action in the short and medium term.
Shargiil Bashir, Chief Sustainability Officer at First Abu Dhabi Bank, said: “In global efforts to reverse the effects of the climate crisis, carbon markets have grown as a viable asset class and are now viewed as a potential ‘gamechanger’ in the climate fight. At FAB, we believe it was necessary to capture the buzz around this solution and with our unique window into the UAE economy, we have provided recommendations that we hope will inform decision-makers as they embark on this opportunity. We see the future of carbon trading in the UAE as a bright one, this is because the UAE is deploying ingenuity, investment, and innovation to ensure carbon markets become an effective discipline.”
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