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

The company will offer guidance and resourcing to support businesses and industries 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.

His Royal Highness 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, stated Saudi Arabia puts forward a leading role in contributing to the reduction of the impact of climate change and encouraging institutions to reduce their carbon emissions as part of several initiatives that were launched in that regard.

The latest move 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) in Riyadh. 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 Al-Humied, Deputy Governor & Head of MENA Investments at PIF said that “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 (MENA) 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.”

Eng. Khalid A. Al-Hussan, CEO of Saudi Tadawul Group, said that “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, of 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.”

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 developing 70 percent of Saudi Arabia’s renewable energy capacity, in line with Saudi Vision 2030.