DUBAI, Aug. 7 (Xinhua) -- The United Arab Emirates (UAE) signed Monday an initial agreement with a blockchain company to create a national carbon credit system using blockchain technology.
The deal was signed between the UAE's Ministry of Climate Change and Environment (MoCCE), the UAE-based Industrial Innovation Group (IIG), and Venom Foundation, an Abu Dhabi-based blockchain company.
The agreement, signed ahead of the COP28 climate summit in Dubai in November and December, aligns with the UAE's more stringent carbon emission reduction goals for this decade and its objective of achieving climate neutrality by 2050, a ministry statement said on Monday.
Organizations and nations employ blockchain technology to monitor carbon credits. The immutable data recorded on the blockchain ensures secure and transparent transactions for all involved parties. This enables government entities like the UAE's MoCCE to sell or issue credits to businesses.
Credit holders can then utilize these credits to emit a designated amount of carbon within a specific timeframe or trade them with other organizations seeking to offset their emissions.
The UAE is investing heavily in clean energy projects as the government has promised to invest at least 54 billion dollars in this aspect by 2030. ■
