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Saudi Arabia Launches Greenhouse Gas Crediting and Offsetting Mechanism to Advance Global Climate Goals 

Saudi Arabia's Minister of Energy Prince Abdulaziz bin Salman speaks during the opening Ceremony of the Middle East and North Africa Climate Week in Riyadh, Saudi Arabia, October 8, 2023. (Reuters)
Saudi Arabia's Minister of Energy Prince Abdulaziz bin Salman speaks during the opening Ceremony of the Middle East and North Africa Climate Week in Riyadh, Saudi Arabia, October 8, 2023. (Reuters)
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Saudi Arabia Launches Greenhouse Gas Crediting and Offsetting Mechanism to Advance Global Climate Goals 

Saudi Arabia's Minister of Energy Prince Abdulaziz bin Salman speaks during the opening Ceremony of the Middle East and North Africa Climate Week in Riyadh, Saudi Arabia, October 8, 2023. (Reuters)
Saudi Arabia's Minister of Energy Prince Abdulaziz bin Salman speaks during the opening Ceremony of the Middle East and North Africa Climate Week in Riyadh, Saudi Arabia, October 8, 2023. (Reuters)

The Clean Development Mechanism Designated National Authority (CDMDNA) announced on Monday the launch of Saudi Arabia's domestic market mechanism, Greenhouse Gas Crediting and Offsetting Mechanism (GCOM), at MENA Climate Week 2023 that is underway in Riyadh.

The step reflects the Kingdom’s leading role in the region in addressing climate challenges and enabling institutions to tackle their emissions.

It is also part of the Kingdom’s efforts to reduce the impact of climate change, under the directions of Prince Mohammed bin Salman, Crown Prince and Prime Minister, realizing the environmental sustainability objectives of Saudi Vision 2030.

The announcement on GCOM is an implementation of the domestic market mechanism announced by Minister of Energy Prince Abdulaziz bin Salman at the Saudi Green Initiative held during COP27 in Sharm el-Sheikh, Egypt, in November 2022.

GCOM will be accessible to all entities within the Kingdom, offering an incentive for developing activities in emissions reduction and removal to reach the Kingdom’s ambitious Net-Zero target by 2060.

Abdullah AlSarhan, Secretary General of the Designated National General, said: “We are proud to advance the Kingdom’s climate ambitions through the launch of the Greenhouse Gas Crediting and Offsetting Mechanism.”

“GCOM will enable entities across the Kingdom to meet their goals to reduce and remove emissions, ensuring collective action in our journey towards a sustainable and low-emission future,” he added.

GCOM's approach is both comprehensive and inclusive, allowing entities within the Kingdom to benefit from its domestic market mechanism for emissions management.

In alignment with the United Nations Framework Convention for Climate Change (UNFCCC), GCOM will support achieving the Saudi Nationally Determined Contributions (NDCs), unlocking a myriad of financial opportunities among national entities striving to meet their climate objectives.

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Riyadh, Tokyo Seek to Expand Cooperation in Clean Energy Technology and Green Hydrogen

Construction work at Expo Osaka 2025 exhibition in Japan. Asharq Al-Awsat
Construction work at Expo Osaka 2025 exhibition in Japan. Asharq Al-Awsat
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Riyadh, Tokyo Seek to Expand Cooperation in Clean Energy Technology and Green Hydrogen

Construction work at Expo Osaka 2025 exhibition in Japan. Asharq Al-Awsat
Construction work at Expo Osaka 2025 exhibition in Japan. Asharq Al-Awsat

Tokyo has said it was willing to expand cooperation with Riyadh in areas such as new sensitive technologies, clean energy technology, green hydrogen and ammonia production, while working on a plan to increase trade with the Kingdom and deepen research and scientific cooperation.

Several departments in Japan's Ministry of Economy, Trade, and Industry told Asharq Al-Awsat that Japanese-Saudi dialogue on clean energy is ongoing, lauding the signing of a memorandum of understanding (MoU) in clean energy and clean ammonia in 2022, as well as an MoU on carbon recycling between the two countries.

The ministry told Asharq Al-Awsat that the objective is to achieve zero carbon by 2050 in Japan and by 2060 in Saudi Arabia. It said Saudi Arabia has natural resources in solar and wind energy, along with minerals that enable Japan to provide energy efficiency technology and materials, fostering integration between the two countries in the relevant fields.

It also said that Saudi Arabia is Japan's top destination for crude oil imports, accounting for 40%. The Japanese government will continue to cooperate in the energy sector, the ministry added. Additionally, the government is encouraging the private sector and Japanese companies to invest in the Kingdom, and expects to expand bilateral work in areas such as mining, clean energy, green hydrogen, and ammonia.

Professor Gento Mogi, Deputy Director of the Mohammed bin Salman Center for Future Sciences and Technology for Saudi-Japan Vision 2030 (MbSC2030) at the University of Tokyo, told Asharq Al-Awsat that the cooperation supported by the center goes beyond relying on trade, crude oil purchases, and technology products and cars. It includes training and development for human resources, academics, researchers, and scholarship students, with 16 projects involving 15 university professors.

According to Mogi, the University has dedicated part of its cooperation with institutions, centers, and academic institutes outside the university, and in Saudi Arabia, it is implementing a five-year initiative that will end in June 2025, with hopes of extending it for another five years.

Saudi-Japanese trade

The Japan External Trade Organization (JETRO) expects an increase in bilateral trade, indicating that Japan exported products worth $6.359 billion, including cars, technology, and electronics, while it imported from Saudi Arabia goods worth more than $34 billion, with 98% of that being crude oil.

JETRO revealed to Asharq Al-Awsat its plan to increase infrastructure products and establish smart cities to enhance cooperation between the two countries, saying Saudi Arabia's Vision 2030 has opened broad opportunities for collaboration between the countries.

JETRO also said that it is working to meet a rising Saudi demand for Japanese products, as well as an increasing interest in Saudi products. Joint exhibitions between companies in both countries are working to boost trade and demand for Saudi-Japanese products, it added.

The operations department of the Expo Osaka 2025 exhibition confirmed that Saudi Arabia will have a strong participation in the exhibition.