Asharq Al-awsat English https://aawsat.com/english Middle-east and International News and Opinion from Asharq Al-awsat Newspaper http://feedly.com/icon.svg

Saudi PIF Establishes Regional Voluntary Carbon Market Company

Saudi PIF Establishes Regional Voluntary Carbon Market Company

Tuesday, 25 October, 2022 - 05:45
The partnership works on support businesses and industry in the region as they play their part in the global transition to net zero - PIF

The Public Investment Fund (PIF) announced the establishment of the Regional Voluntary Carbon Market Company, where PIF holds an 80% stake and Saudi Tadawul Group Holding Company holds a 20% stake in the company.


The company will offer guidance and resourcing to support businesses and industry in the region as they play their part in the global transition to net zero, ensuring that carbon credit purchases go above and beyond meaningful emission reductions in value chains.


PIF and Saudi Tadawul Group announced earlier in September 2021 the Voluntary Carbon Market (VCM) Initiative, as the Saudi Crown Prince Mohammed bin Salman bin Abdulaziz, Prime Minister, Chairman of the Council of Economic and Development Affairs, and Chairman of the Board of Directors of PIF, hailed Saudi Arabia’s leading role in contributing to the reduction of the impact of climate change.


Headquartered in Riyadh, the company’s announcement will help facilitate the efforts of the world’s largest-ever carbon credit auction on the 25th of October at the 6th Edition of the Future Investment Initiative (FII).


The auction will involve a total of one million tons of carbon credits and will offer high-quality credits including CORSIA compliant, Verra registered certificates.


Yazeed A. Al-Humied, Deputy Governor and Head of MENA Investments at PIF said: “We are delighted to announce the establishment of the Regional Voluntary Carbon Market Company, which coincides with the auction’s announcement – a major milestone for the Middle East and North Africa region."


"We are passionate about the potential for voluntary carbon markets to deliver additional carbon reduction benefits throughout the region, thereby ensuring the MENA region is at the forefront of climate action and that Saudi Arabia is a leading force in solving the climate challenge," he added.


The company will play an important role in PIF’s wider efforts to drive the investment and innovation required to address the impact of climate change and support Saudi Arabia’s efforts to achieve net zero by 2060.”


For his part, Eng. Khalid A. Al-Hussan, CEO of Saudi Tadawul Group said: “The Saudi Tadawul Group has an important role to play in championing Saudi Arabia’s efforts towards a sustainable future. We continuously work towards encouraging the adoption of ESG disclosures in the Saudi capital market, to advocate for a better, more transparent future. We are delighted to be an integral part, strategically and operationally, in the Regional Voluntary Carbon Market Company. We believe it will be instrumental in supporting Vision 2030 and in further realizing the Group’s vision of being a gateway to the MENA region for global investors."


Also, Riham ElGizy, Director of VCM Initiative said: “The inaugural auction represents the first step towards becoming a leading presence in the global voluntary carbon market ecosystem. With an expected one million tons of carbon credits available to trade, we predict that our auction will be the largest carbon credit auction to date. ”


The company’s establishment is a continuation of PIF initiatives to support Saudi Arabia’s green agenda and follows previous announcements by the Fund, including the completion of its $3 billion inaugural green bond, and the various renewable projects PIF is spearheading as part of its commitment to develop 70% of Saudi Arabia’s renewable energy capacity, in line with Saudi Vision 2030.


Editor Picks

Multimedia