Masdar and the Abu Dhabi National Oil Company (Adnoc) signed on Monday a framework agreement to develop a series of ground-breaking projects to reduce carbon emissions from Abu Dhabi's oil and gas facilities and monetize the emission reduction under the Kyoto Protocol's Clean Development Mechanism (CDM). Masdar is driven by the Abu Dhabi Future Energy Company (ADFEC), a wholly owned company of the government of Abu Dhabi through the Mubadala Development Company. The CDM, a project-based regulatory mechanism led by the United Nations, provides financial incentives to reduce greenhouse gas emissions in countries that do not have binding reduction commitments under the Kyoto Protocol, by turning emission reductions into tradable assets or “Certified Emission Reductions” (CERs) or carbon credits. The agreement allows Masdar to identify and develop a portfolio of CDM projects at Adnoc group companies' facilities in Abu Dhabi on an on-going basis. Five CDM projects are currently under development by Adnoc, with the capacity to reduce four million tons of carbon dioxide emissions, are already in the pipeline for registration at the United Nations by Masdar. “Adnoc's partnership with Masdar raises the bar for oil companies looking to reduce their carbon footprint. We are proud to work with Masdar such that the CDM can be effectively used to support our efforts to reduce environmental impact and ensure a sustainable future for the industry” said Adnoc's chief executive officerYousef Omair Bin Yousef, . As part of the agreement, Masdar will monitor the life cycle of the CDM projects in Adnoc's portfolio and assure their registration at the United Nations, the monitoring of emissions and the delivery of carbon credits. “Our agreement with Adnoc is a step forward towards fulfilling the Abu Dhabi leadership's directives to reduce carbon emissions,” said Dr. Sultan Al Jaber, Masdar's chief executive officer. __
