Riyadh – Mubasher: The Public Investment Fund (PIF) announced the establishment of the Regional Voluntary Carbon Market Company, where PIF holds a majority 80% stake while the listed Saudi Tadawul Group Holding Company owns the remaining 20% equity.
The new firm is headquartered in Riyadh and will boost the global transition to net zero by offering guidance and resourcing to regional businesses and industry, besides ensuring that carbon credit sales go above and beyond meaningful emission cuts in value chains, according to a press release.
Setting up the company follows the Voluntary Carbon Market (VCM) initiative which was unveiled by PIF and Tadawul Group in September 2021.
The announcement of the new firm is expected to facilitate the efforts of the world’s largest carbon credit auction on 25 October 2022 at the 6th Edition of the Future Investment Initiative (FII) that is taking place in Riyadh until the 27th of the month. The auction will include 1 million tonnes of carbon credits.
Deputy Governor and Head of MENA Investments at PIF, Yazeed Al Humied, said: “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.”
Al Humied 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.”
Khalid Al Hussan, CEO of Saudi Tadawul Group, meanwhile said: “The Saudi Tadawul Group has an important role to play in championing Saudi Arabia’s efforts towards a sustainable future.”
Al Hussan noted: “We believe it [the Regional Voluntary Carbon Market Company] will be instrumental in supporting Vision 2030 and in further realising the Group’s vision of being a gateway to the MENA region for global investors."
