The UAE Ministry of Climate Change and Environment signed a Memorandum of Understanding to establish the "National Carbon Credit System using Blockchain."
Maryam bint Mohammed Al Muhairi, the UAE Minister of Climate Change and Environment, witnessed the signing of a Memorandum of Understanding (MoU) between the ministry, the Innovation Industrial Group, and the Phenom Foundation, concerning cooperation to establish the world's first national carbon credit system using blockchain technology.
The MoU aims to reduce emissions, promote sustainable agriculture, enhance environmental health, and preserve biodiversity in the UAE by providing the highest levels of transparency, reliability, efficiency, and security in managing the issuance, transfer, calculation, and tracking of carbon credits accurately, as well as facilitating the digitization process. The MoU was signed by Mohammed Saeed Al Naimi, Acting Undersecretary of the Ministry of Climate Change and Environment; Tareem Matar Tareem, CEO of the Innovation Industrial Group; and Peter Knez, President of the Phenom Foundation, at the ministry's headquarters in Dubai.
Maryam Al Muhairi stated: "With the UAE preparing to host COP28 in November, the country is striving to double its efforts and showcase its inspiring experience to the world in addressing climate change by reducing carbon emissions across various sectors. The UAE believes in its ability to make a difference in this field and has committed, through the third version of its second Nationally Determined Contributions (NDC) report, to reduce its emissions by 40% compared to a business-as-usual scenario, which is an increase of 9% over its previous commitment.
She emphasized that achieving this requires a scientific approach based on modern technology and the highest levels of transparency to monitor carbon credits in order to operate based on realistic data and achieve tangible results, ultimately reaching climate neutrality by 2050. She noted that collaborating with the Innovation Industrial Group and the Phenom Foundation to create the national carbon credit system using blockchain is an important step in this regard and reflects our determination to enhance the UAE's climate action for a more sustainable future for us and future generations.
For his part, Tareem Matar Tareem said: "We are honored to contribute to the establishment of the first national carbon credit registration system in the UAE. The Innovation Industrial Group, with over 30 years of experience, is closely committed to sustainable development goals and striving to reduce environmental impact through decarbonization, as global climate change is closely linked to the increasing concentration of carbon dioxide in the atmosphere."
He pointed out that the group has a long history of establishing extensive national registries related to identification processes and excels at developing sustainable pathways for various business sectors, envisioning decarbonization initiatives, creating project documents for various carbon credit registries, and effectively managing and reporting carbon utilization projects. Peter Knez, President of the Phenom Foundation, mentioned: "Phenom has provided an unparalleled solution by serving as a primary infrastructure for a global ecosystem of Web3 applications. The foundation has ultra-fast transaction speeds and unlimited scalability to meet government needs. It is the first company in the UAE to develop and license its blockchain technology, shaping the future of decentralized national systems and transitioning corporate and government operations into the digital age."
The MoU aims to achieve four strategic goals related to reducing and sequestering greenhouse gas emissions to achieve climate neutrality, promoting agricultural business and responsible investment in agriculture and sustainable food systems, enhancing economic value from the environmental health program, and preserving biodiversity to enhance the benefits from ecosystem services in sustainable development. The main areas of cooperation among the three parties that signed the MoU include developing specific approaches and foundational principles and technological solutions for a global carbon credit registration and issuance certificate platform in the UAE, within the regulatory frameworks of government decisions regarding the national carbon credit issuance and registration system project, and providing a blockchain-based solution for the secure and effective management of the national carbon credit issuance and registration system records, as well as identifying and selecting projects to reduce or eliminate carbon emissions.
Additionally, the cooperation between the parties involves developing a legislative and regulatory framework for establishing the national carbon credit issuance and registration system by the Ministry of Climate Change and Environment, creating a licensed blockchain platform for the safe and effective production of carbon credit registration system documents, ensuring the integration of systems to provide all the requirements for establishing and developing business processes and the integrated concept of the carbon credit issuance and registration process, evaluating projects aimed at reducing and eliminating carbon emissions to ensure transparency in the process and achieve environmental integration, and leveraging it to achieve the UAE’s Nationally Determined Contributions (NDC).
The MoU covers various fields of work, including investment in the agricultural sector, investment in innovative agricultural technologies, investment in the food industry, developing food safety practices, enhancing the beekeeping sector and its products, and investing in aquaculture and fish farming. The MoU also includes activating and implementing phytosanitary and animal health regulations, facilitating trade exchange, enhancing agricultural and livestock resources in the UAE, improving good agricultural and livestock practices, developing the date palm sector, enhancing energy efficiency, renewable energy, waste-to-energy conversion, sound chemical management, green technology, creating green cities, green buildings, green transportation, and other activities related to these sustainable cities.
It also addresses improving air quality, biodiversity and environmental protection, monitoring changes in natural habitats and their threats, preserving natural reserves, and any innovation that develops sustainable development policy and food security, conducting scientific research and studies, and education, training, and qualification in the ministry's fields of work. Furthermore, the MoU covers green investment, climate change adaptation, reducing carbon emissions, minimizing environmental pollution, preparing and implementing a climate neutrality strategy, enhancing partnership opportunities with the private sector, developing waste treatment methods, improving and developing processes and services, exchanging technical information, laws, experiences, courses, and visits, and implementing the UAE's commitments regarding international agreements (such as the Agreement on the Application of Sanitary and Phytosanitary Measures - SPS), preparing, activating, and implementing environmental legislation, policies, and strategies, awareness and education, circular economy, green economy, enhancing food security, sustainable development, innovation, and technological development in the environmental field, supporting eco-tourism, and assessing the capabilities and competencies of employees.
