Crescent Petroleum and Dana Gas are eyeing oil and gas projects in the Middle East that could cut greenhouse gas emissions and generate carbon emissions reduction certificates (CER).
The DMCC’s main partner, UK-based carbon-credit firm EcoSecurities, and the two companies will later look at similar projects worldwide.
“Our emphasis will be on the Middle East and we have already started in Egypt. But we will be looking at companies outside the region,” said Badr Jafar, Crescent Petroleum’s executive director. Crescent Petroleum is a shareholder in Dana Gas.
Famed for its man-made islands, non-stop construction and cavernous air-conditioned shopping malls, Dubai is part of UAE, one of the highest per capita producers of greenhouse gas in the world.
The DMCC hopes to become a centre for trading greenhouse gas emissions permits, diving into a fast growing market and the potential to turn the region’s sizeable carbon footprint into cash.
Under the Kyoto Protocol developing countries can sell emissions reductions from their energy-intensive industry to help rich countries offset their own contribution to climate change.
The Middle East is a major contributor to greenhouse gas emissions through its oil and gas industry which produces over 30 per cent of global oil supply and over 10 per cent of its gas.
UAE greenhouse gas emissions per capita were among the highest in the world in 2003, according to a UN Development Programme report issued last year. The UAE emitted 33.6 tonnes per capita, second only to Qatar and over nine times the world average of 3.7 tonnes.
