South Korean Group Inks Carbon Credit Deal With UAE Wealth Fund Mubadala

South Korea’s SK Group signed a partnership deal with the sovereign wealth fund of the United Arab Emirates (UAE) to establish a carbon credit market in Asia, as part of efforts to tackle climate change in the private sector.

SK Group Chairman Chey Tae-won signed the memorandum of understanding (MOU) with Khaldoon Khalifa Al Mubarak, CEO of Mubadala Investment Company, in Abu Dhabi while accompanying South Korean President Yoon Suk Yeol on his four-day state visit to the Middle Eastern country, Yonhap news agency reports.

Under the MOU, SK and Mubadala will work together to create a voluntary carbon market, where companies can trade carbon credits certified by private entities, SK said. Chey is traveling as part of a business delegation representing some 100 South Korean companies.

The two sides will seek to form a working group to materialise the partnership and work out details for the cooperation, especially on how to establish the methodologies to certify the carbon reduction and build transparency and credibility of such a market.

In 2021, SK launched an in-house “carbon reduction certification center” as the first private enterprise in Asia to evaluate the greenhouse gas emissions by its affiliates and certify their performance in carbon reduction efforts.

Mubadala, with US$284 billion in assets, has a wide range of investment portfolios in eco-friendly areas, including an equity investment in AirCarbon Exchange, a Singapore-headquartered carbon credit exchange platform.

#carboncredits #carbonreduction #aircarbonexchange