HomeCarbon CreditsXpansiv Chosen To Open Carbon Credit Exchange in Saudi Arabia

Xpansiv Chosen To Open Carbon Credit Exchange in Saudi Arabia

The Regional Voluntary Carbon Market Company (RVCMC) announced its partnership with Xpansiv, a leading market infrastructure provider in the global energy transition. The goal is to facilitate the technological backbone for RVCMC’s forthcoming carbon credit exchange in Saudi Arabia. It will launch later this year. 

RVCMC and Xpansiv Forge Path to Sustainable Trading

Established in October 2022, RVCMC was founded by the Public Investment Fund (PIF) and the Saudi Tadawul Group Holding Company. PIF holds an 80% stake in the company, while Tadawul Group holds the remaining 20% stake. 

With a shared vision, RVCMC is swiftly and ambitiously building a credible voluntary carbon market with global significance. Central to its mission is the prioritization of high-quality carbon credits and proactive climate action.

RVCMC is spearheading the development of an ecosystem that encompasses various components essential for effective climate mitigation. This ecosystem includes the following financial vehicles and services:

  • An investment fund dedicated to financing climate mitigation projects,
  • An exchange tailored for the trading of carbon credits, and
  • Advisory services aimed at assisting organizations in navigating the complexities of decarbonization.

The decision to enlist Xpansiv stems from RVCMC’s endeavor to furnish traders with institutional-grade infrastructure, ensuring swift and secure transactions.

Xpansiv, renowned for operating CBL, the world’s largest spot carbon credit marketplace, will furnish the new exchange with its open-access market infrastructure. This includes a fully automated, same-day settlement platform and a portfolio management system, both seamlessly integrated with leading global registries.

RVCMC will impose stringent criteria for the exchange to exclusively list high-integrity carbon credit projects. All of them are validated by independent standard setters, thereby fortifying the global energy transition. 

Contracts will be meticulously crafted to align with industry best practices, incorporating a gradual transition towards carbon removal initiatives.

Fueling Climate Action: RVCMC’s Role in Global Carbon Markets

To fulfill the objectives outlined in the Paris Agreement and attain global net zero greenhouse gas emissions targets, emerging markets, and developing nations necessitate an annual investment of $2.4 trillion in climate action by 2030. 

The global VCM, forecasted to reach $3 billion by 2024’s end, plays a pivotal role in bridging this funding gap. Projections indicate that the market could grow to $100 billion by 2030, underscoring its significance in advancing climate mitigation efforts.

projected growth of carbon offset demand

RVCMC’s past voluntary carbon credit auctions have significantly spurred demand in the region. They saw the sale of 1.4 million tonnes in 2022 and 2.2 million tonnes in 2023,

The forthcoming launch of the new RVCMC exchange will help amplify carbon credit trading in Saudi Arabia and beyond. 

Such development aligns with the Kingdom’s commitment to fighting climate change as outlined in the Saudi Green Initiative and Vision 2030. This initiative aims to direct climate funding to regions where it’s most urgently needed. It addresses climate concerns sustainably in three ways: reducing emissions, expanding forestation, and safeguarding land and sea areas. 

Saudi Arabia initiative

Riham ElGizy, RVCMC CEO, emphasized the importance of a carbon credit trading exchange in achieving their goal to be one of the biggest VCMs worldwide by 2030. He further added that:

“Our work with Xpansiv will help us build the infrastructure the market needs for a thriving, transparent and increasingly liquid market, one that can maximize the role of carbon offsets in tackling climate change across the Global South.”

John Melby, CEO of Xpansiv, echoed this sentiment, stating:

“We look forward to supporting the company’s mission to develop a marketplace that will channel carbon finance at scale, which is essential to realizing the global energy transition at an accelerated pace.”

Xpansiv is at the forefront of advancing the world’s energy transition through its robust market infrastructure. The company’s Platform Solutions group operates the largest spot exchange for environmental commodities, encompassing carbon credits and renewable energy certificates

Xpansiv Registry and Energy Solutions stands as the premier provider of registry infrastructure for energy, power, and environmental markets. Additionally, Xpansiv Managed Solutions is also the largest independent platform for managing and selling solar renewable energy credits across North America.

With a shared vision of promoting high-quality carbon credits and proactive climate action, RVCMC and Xpansiv commit to foster a transparent, liquid market that accelerates the global energy transition. As the world moves towards achieving net zero emissions, initiatives like RVCMC’s exchange play a vital role in mobilizing investment and driving impactful climate mitigation efforts.

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