Saudi Gazette report

RIYADH — Saudi Arabia’s Public Investment Fund (PIF) announced on Wednesday the successful auction of 1.4 million tons of carbon credits, in the largest-ever carbon credit sale in the world, that was held on Tuesday, the first day of the 6th edition of the Future Investment Initiative (FII) in Riyadh.

A total of 15 Saudi and regional entities took part in the auction, and at the closing ceremony certificates were presented to the participants by Yazeed Al-Humied, deputy governor and head of MENA Investments, for their participation in the auction, according to a press statement.

Saudi Aramco, Olayan Financing Company and Saudi Arabian Mining Company (MAADEN) purchased the largest number of carbon credits. The other successful bidders at the auction were Abdul Latif Jameel Co.; ACWA Power Company; ENOWA, a subsidiary of NEOM; Golf Saudi; Gulf International Bank; International Islamic Trade Finance Corporation; Saudi Basic Industries Corporation (SABIC); Saudi Motorsport Company (SMC); Saudi National Bank; Saudi Airlines; Yanbu Cement Company; and Zamil Group Holding Company.

The auction offered high-quality CORSIA-compliant and Verra-registered carbon credits to support businesses operating in a diverse range of 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. The auction will play an important role in PIF’s wider efforts to drive investment and innovation required to address the impact of climate change and support Saudi Arabia’s efforts to achieve net zero by 2060.

The VCM initiative is a continuation of PIF’s efforts 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 percent of Saudi Arabia’s renewable energy capacity, in line with Vision 2030.

It is noteworthy that Carbon trading, also known as carbon emissions trading, is the use of a marketplace to buy and sell credits that allow companies or other parties to emit a certain amount of carbon dioxide. Carbon credits were devised as a mechanism to reduce greenhouse gas emissions by creating a market in which companies can trade in emissions permits.