Sale of 2.2 Mln Tons of Carbon Credits in Global Auction

The company’s participation at the Future Investment Initiative in the Saudi capital Riyadh in October. (Asharq Al-Awsat) 
The company’s participation at the Future Investment Initiative in the Saudi capital Riyadh in October. (Asharq Al-Awsat) 
TT

Sale of 2.2 Mln Tons of Carbon Credits in Global Auction

The company’s participation at the Future Investment Initiative in the Saudi capital Riyadh in October. (Asharq Al-Awsat) 
The company’s participation at the Future Investment Initiative in the Saudi capital Riyadh in October. (Asharq Al-Awsat) 

The Regional Voluntary Carbon Market Company (RVCMC) announced Thursday the successful auction of over 2.2 million tons of carbon credits in the largest-ever voluntary carbon credit auction, which was held in Nairobi, Kenya on Wednesday.

The auction offered high-quality CORSIA-eligible and Verra-registered carbon credits which can enable buyers operating in a range of industries, to play their part in the global transition.

RVCMC seeks to ensure that voluntary carbon credit purchases go above and beyond meaningful emission reductions in value chains.

Sixteen regional and international entities took part in the auction, with Aramco, Saudi Electricity Company (SEC), and ENOWA (a subsidiary of NEOM), purchasing the largest number of carbon credits.

Other successful bidders at the auction included Saudi Aramco, International Islamic Trade Finance Corporation, and ENOWA (a subsidiary of NEOM).

The auction clearing price was 23.50 SAR per ton of carbon credits.

The basket of credits includes 18 projects representing a mix of CO2 avoidance and removal.

Three-quarters of the carbon credits originated from countries across the Middle East, North Africa, and Sub-Saharan Africa, including Kenya, Uganda, Burundi, Rwanda, Morocco, Egypt, and South Africa.

The basket of credits includes projects such as improved clean cookstoves and renewable energy projects.

In addition, RVCMC signed two MOUs, one with Eveready East Africa Plc, and another with Carbon Vista Nigeria LP, in order to generate high-quality, impactful carbon projects in Kenya, Nigeria, and beyond. This signals the important commitment between RVCMC and key African institutions.

"We need to use every tool at our disposal to tackle the devastating impacts climate change is already having. This auction demonstrates the role voluntary carbon markets can play in driving funding where it is most needed, to deliver climate action,” Chief Executive Officer of RVCMC Riham ElGizy said.

"Today we have completed the biggest-ever auction of high-quality voluntary carbon credits, selling over 2.2 million tons. This follows on from the 1.4 million tons auctioned in October last year,” ElGizy added.

"Our aim is to be one of the largest voluntary carbon markets in the world by 2030, one that enables compensation of hundreds of millions of tons of carbon emissions per year... Our achievements to date, in such a brief period, demonstrate commitment to long-term success, and ability to deliver on our ambitions."

ElGizy further announced that the company plans on launching a trading platform for the voluntary carbon market in mid-2014.

RVCMC was established by the Public Investment Fund (PIF) and Saudi Tadawul Group to offer guidance and resourcing to support businesses and industry in the MENA region as they play their part in the global transition to Net Zero.

Its mission is to create a robust and successful market for both the generation and use of voluntary carbon credits in the MENA region and play a meaningful role in assisting the transition to a low-carbon global economy.

Moreover, Olayan Financing Company took part in the second RVCMC's carbon credit auction and purchased carbon credits.

"We firmly believe that as a leading private sector company, it is imperative to not only find effective solutions but also to innovate in our approach to combating climate change," remarked its CEO Nabeel Al-Amudi.

"This endeavor by RVCMC represents a significant stride toward a more sustainable future for both the kingdom as well as the rest of the world," he added.



Firm Dollar Keeps Pound, Euro and Yen Under Pressure

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo
TT

Firm Dollar Keeps Pound, Euro and Yen Under Pressure

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo

The US dollar charged ahead on Thursday, underpinned by rising Treasury yields, putting the yen, sterling and euro under pressure near multi-month lows amid the shifting threat of tariffs.

The focus for markets in 2025 has been on US President-elect Donald Trump's agenda as he steps back into the White House on Jan. 20, with analysts expecting his policies to both bolster growth and add to price pressures, according to Reuters.

CNN on Wednesday reported that Trump is considering declaring a national economic emergency to provide legal justification for a series of universal tariffs on allies and adversaries. On Monday, the Washington Post said Trump was looking at more nuanced tariffs, which he later denied.

Concerns that policies introduced by the Trump administration could reignite inflation has led bond yields higher, with the yield on the benchmark 10-year US Treasury note hitting 4.73% on Wednesday, its highest since April 25. It was at 4.6709% on Thursday.

"Trump's shifting narrative on tariffs has undoubtedly had an effect on USD. It seems this capriciousness is something markets will have to adapt to over the coming four years," said Kieran Williams, head of Asia FX at InTouch Capital Markets.

The bond market selloff has left the dollar standing tall and casting a shadow on the currency market.

Among the most affected was the pound, which was headed for its biggest three-day drop in nearly two years.

Sterling slid to $1.2239 on Thursday, its weakest since November 2023, even as British government bond yields hit multi-year highs.

Ordinarily, higher gilt yields would support the pound, but not in this case.

The sell-off in UK government bond markets resumed on Thursday, with 10-year and 30-year gilt yields jumping again in early trading, as confidence in Britain's fiscal outlook deteriorates.

"Such a simultaneous sell-off in currency and bonds is rather unusual for a G10 country," said Michael Pfister, FX analyst at Commerzbank.

"It seems to be the culmination of a development that began several months ago. The new Labour government's approval ratings are at record lows just a few months after the election, and business and consumer sentiment is severely depressed."

Sterling was last down about 0.69% at $1.2282.

The euro also eased, albeit less than the pound, to $1.0302, lurking close to the two-year low it hit last week as investors remain worried the single currency may fall to the key $1 mark this year due to tariff uncertainties.

The yen hovered near the key 160 per dollar mark that led to Tokyo intervening in the market last July, after it touched a near six-month low of 158.55 on Wednesday.

Though it strengthened a bit on the day and was last at 158.15 per dollar. That all left the dollar index, which measures the US currency against six other units, up 0.15% and at 109.18, just shy of the two-year high it touched last week.

Also in the mix were the Federal Reserve minutes of its December meeting, released on Wednesday, which showed the central bank flagged new inflation concerns and officials saw a rising risk the incoming administration's plans may slow economic growth and raise unemployment.

With US markets closed on Thursday, the spotlight will be on Friday's payrolls report as investors parse through data to gauge when the Fed will next cut rates.