Dubai’s Supreme Council of Energy (DSCE) and Dubai Carbon Centre of Excellence have signed a memorandum of understanding to jointly devise a carbon reduction initiative.

The agreement was signed on 26 February and is designed to “encourage low carbon technology and encourage investment [in this sector],” according to Saeed al-Tayer, vice chairman of DSCE and managing director and chief executive officer of Dubai Electricity and Water Authority (Dewa).

DSCE and Dubai Carbon Centre of Excellence will devise a policy framework to reduce carbon dioxide emissions and initiate a carbon trading scheme to “conserve [Dubai’s] resources and protect the environment,” says al-Tayer.

The partnership’s first task will be to accurately assess the current level of carbon dioxide emissions in Dubai. “Then we will work against this baseline,” said Nejib Zaafrani, secretary general and chief executive officer of DSCE.

Once the benchmark is in place, Dubai may decide to trade carbon credits internationally said a representative at the signing ceremony. Dubai will also announce a target for carbon dioxide emissions.

On the supply side, Dubai has already announced plans to reduce its carbon footprint in the form of the 1,000MW solar power park, which was unveiled in January, said Zaafrani.