(Bloomberg) -- Abu Dhabi-based Neovision Wealth Management is setting up a $250 million fund to invest in the development of carbon credits in frontier markets.

The Global Carbon Credit Development Fund will focus on projects managed by investment firm Global Frontier Capital and will generate carbon credits, which are tradeable units of greenhouse gas emissions. The fund will be the first of its kind in the Middle East, the firms said. 

Carbon credits allow purchasers to claim they offset their overall emissions by purchasing a certain amount of credits, though some environmentalist argue that’s not enough to curb discharges if fossil-fuel production continues to rise.

Read more: Are ‘Carbon Offsets’ a Credible Climate Solution?: QuickTake

“As the world transitions towards a low-carbon economy, demand for carbon credits is expected to soar,” said Ryan Lemand, co-founder and chief executive officer of Neovision Wealth Management.

The United Arab Emirates, of which Abu Dhabi is the capital, is currently hosting the COP28 climate summit.

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