On November 12, during the COP29 summit in Baku, Azerbaijan, Saudi Arabia, the world’s leading oil exporter, launched its first carbon credit exchange platform as part of its ambitious decarbonization goals and economic diversification plan.
Led by the Regional Voluntary Carbon Market Company (RVCMC), primarily funded by Saudi Arabia’s Public Investment Fund (PIF), this platform aims to foster a robust market for carbon credits, enabling private sector engagement in environmental projects.
Riham ElGizy, CEO of RVCMC, emphasized that establishing an integrated carbon trading infrastructure is vital for facilitating private sector investment, a step aligned with Saudi Arabia’s Vision 2030.
This strategic initiative supports the kingdom’s goal of reaching carbon neutrality by 2060 while investing in renewable energy and sustainable projects.
The launch included a major carbon credit auction, where 2.5 million credits were offered by 22 participating companies, as reported by Energynews.pro.
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These credits, certified by organizations such as Verra, Gold Standard, and Puro.earth, are sourced from impactful projects in the Global South, including Bangladesh, Brazil, and Vietnam.
By leveraging certified credits, the platform aims to enhance the transparency and integrity of the market, crucial for maintaining investor trust.
This marks RVCMC’s third auction, following previous events in Nairobi and Riyadh, through which over 2.2 million tons of carbon credits were traded.
As Middle Eastern nations like Saudi Arabia and the United Arab Emirates (UAE) expand their roles in the voluntary carbon market, the region is positioning itself as a key carbon trading hub, according to Energynews.pro.
With the launch of this carbon credit exchange, Saudi Arabia reinforces its dedication to energy transition and decarbonization, aiming to establish itself as a key player in the carbon market.
However, the success of this initiative will depend on Saudi Arabia’s ability to draw investors and uphold rigorous standards for carbon-funded projects, contributing to the global climate finance landscape, Energynews.pro concluded.
