UAE Utilizes Blockchain Technology in Developing Carbon Credit System

The UAE’s Ministry of Climate Change and Environment (MCCE) has partnered with the Industrial Innovation Group and the Venom Foundation to develop a carbon credit system.

Countries and organizations use blockchain technology to track carbon credits, which can be securely sold or traded due to the data’s immutable nature on-chain. This enables the MCCE to sell or issue credits to businesses, and credit holders can either use the credits to emit a specific amount of carbon over a given period or sell and trade them to offset other organizations’ emissions with complete transparency.

The leaders of the UAE have made changes to their agenda regarding climate change and carbon offsetting. Their ultimate objective is to attain carbon neutrality by 2050. The UAE is investing heavily in clean energy projects as the government has promised to invest at least $54 billion in this aspect by 2030.

Venom Foundation partnered with Iceberg Capital Limited to launch a $1 billion venture fund for Web3 and blockchain companies. The Venom Ventures Fund (VVF) aims to pump investments in protocols decentralized apps (Dapps) of Web3, which focus on GameFi products and services, DeFi, payments, asset management, and banking services to be a pioneering supporter for coming entrepreneurs and digital technologies.

Indeed, the fund made its first investment, leading Nümi Metaverse’s $20 million funding round. Nümi Metaverse is a universal platform for creators, innovators, and followers. It will debut its ‘Visual Novel’ this year, a mini-game experience with a range of special rewards for players.

Although the UAE is ranked 33rd worldwide for total emissions, a recent report indicates that it ranks sixth globally for per capita emissions based on data from 2020.