HomeCarbon CreditsSaudi's Wealth Fund and Saudi Aramco Form the MENA Voluntary Carbon Market

Saudi’s Wealth Fund and Saudi Aramco Form the MENA Voluntary Carbon Market

Saudi’s Public Investment Fund (PIF) signed an agreement forming the Middle East and North Africa (MENA) Voluntary Carbon Market (VCM).

PIF is Saudi Arabia’s sovereign wealth fund that is now targeting the carbon credit market.

Another member of MENA VCM is Saudi Aramco, the world’s biggest oil producer – by a longshot.

Image

The other partners are ACWA Power, Saudi Arabian Airlines, Saudi Arabian Mining Company, and ENOWA. Each PIF partner signed a separate non-binding MoU.

What’s The MENA Voluntary Carbon Market?

The creation of MoUs is part of the Crown Prince’s efforts to achieve net-zero goals by 2060.

Signing partners will aid PIF’s VCM initiative by supplying and trading carbon credits. PIF expects that establishment of the market will materialize in 2023. More partners will be invited to join the MENA voluntary carbon market in the last quarter of this year.

Public officials are optimistic about the potential of this VCM. They are confident in the commitment of the first five private companies that took part in it. Their cooperation is the first of its kind in the MENA region, giving excitement to everyone.

How Does VCM Initiative Benefit The Partners?

The governor said that the pact will indeed drive net-zero innovations in the country. But since it’s a partnership, the benefits go two-way. It will also help the partners align their own carbon emissions reduction efforts.

For example, Saudi Aramco said that carbon credits are vital in their move to net-zero. They’re contributing to achieving secure and more sustainable energy that powers their business.

The same goes for Saudi Arabian Airlines. Their participation in MENA VCM serves a pivotal role in the airline’s history. They expect it to contribute big to their carbon offsetting and sustainability goals.

The utility company, ACWA Power, even has more to say about its involvement. They acknowledge their essential role in driving carbon emissions reduction globally. And so, taking part in the MENA voluntary carbon market is a great opportunity for them.

As for the other partners, both said that the VCM is a crucial step to achieving their net-zero ambitions, too.

On top of all those pledges is another desirable outcome of creating this very first VCM in the MENA region. That is it will pursue carbon credits that offer the highest quality and integrity in the market.

Other middle east countries, such as UAE have also stated their own net-zero 2050 pledge and could potentially join the MENA VCM in the future.

Most Popular
LATEST CARBON NEWS

Twelve Transforms Carbon into Sunglasses, Car Parts, and Fuel

As firms around the world are tackling climate change, Twelve is offering a solution through its carbon transformation tech which turns CO2 into products...

Crypto Carbon Credits Exchange 1GCX Closes $2B Record Deal

Crypto carbon credits exchange 1GCX partnered with T3 Trading, raising $2 billion in assets under management (AUM) and setting up a $100 million liquidity...

Ethereum’s Stealth Move to Wipe Out Its Carbon Footprint

Ethereum won the spotlight with the Merge, which cut the crypto’s energy use and carbon footprint more than expected by 99.99%. The second-largest cryptocurrency -...

Iron and Steel Industry Will Buy $250B Carbon Credits for Net Zero

Bringing the iron and steel industry to net zero by 2050 requires $1.4 trillion of investment, $250 billion of which is for carbon credits,...
CARBON INVESTOR EDUCATION

ESG Investing with Carbon Credits – What Investors Need To Know

Reducing carbon emissions is evident as firms focus on ESG investing and governments account for climate impact through carbon credits.

The 5 Top Carbon Offset Project Developers

Are you looking to directly reduce your carbon footprint or support projects that cut emissions elsewhere? Then carbon credits allow you to do either...

The Top 3 Private Carbon Companies to Watch Right Now

Right now, the carbon space is heating up. Dozens of companies are jumping into what’s fast becoming one of the hottest spaces to invest...

Carbon Insetting: The Target of Scope 3 Carbon Offset Accounting

Carbon offsets are a well-known sustainability concept so you most likely have heard of them. But there’s a relatively new sustainable supply chain term...