The Voluntary Carbon Market Company (VCM), a joint venture established by the Public Investment Fund (PIF) and Saudi Tadawul Group, has signed a landmark long-term agreement with Enowa, the energy and water subsidiary of NEOM, to facilitate the delivery of approximately 30 million tonnes of high-integrity carbon credits by the end of this decade.
Announced following the first delivery on December 19, 2024, the agreement represents one of the largest carbon credit transactions in the region to date. The credits, sourced from climate action projects around the world—primarily from the Global South—will be transacted through VCM’s recently launched exchange platform.
Riham ElGizy, CEO of VCM, described the deal as a pivotal moment for the development of Saudi Arabia’s voluntary carbon market. “The long-term agreement between VCM and Enowa demonstrates Saudi Arabia’s leadership in driving the growth of global voluntary carbon markets. It allows Enowa to offset emissions while supporting the build-out of sustainable infrastructure, and provides vital funding certainty for climate projects in the Global South,” she said.
ElGizy emphasized the broader impact of the initiative, stating that “to achieve global net-zero goals, these projects not only need capital but long-term commitment. This partnership showcases the potential of the VCM exchange platform to support high-impact climate finance at a time when funding certainty is urgently needed.”
Enowa Acting CEO Jens Madrian expressed strong support for the initiative, noting the company’s ongoing commitment to sustainable energy practices. “Enowa is proud to be the first company in Saudi Arabia to sign a large-scale, long-term carbon credit agreement with VCM. This supports our ambition to meet NEOM’s energy needs through clean, renewable systems,” he said.
VCM officially launched Saudi Arabia’s first voluntary carbon credit exchange on November 12, 2024. The platform is built with institutional-grade infrastructure, offering secure, transparent transactions, price and data discovery tools for global carbon credit projects, and open integration with leading global registries. It also aims to develop specialized trading infrastructure to support Islamic Finance practices.
Key features of the exchange include an auction market, request-for-quote (RFQ) and block trade capabilities, with spot market and additional trading functionalities expected to launch in 2025. The voluntary carbon offset market is projected to grow significantly—from USD 2 billion in 2020 to a projected USD 250 billion by 2050.
Enowa has previously participated in VCM’s carbon credit auctions in Saudi Arabia (2022) and Kenya (2023). Through its mandate to power NEOM sustainably, Enowa continues to serve as a global model for climate-smart urban development, supporting Saudi Arabia’s vision for environmental stewardship and economic diversification.
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