S.Arabia launches carbon market to fund climate projects

Saudi Arabia has taken a significant step towards addressing climate change by launching a carbon trading market. This move aligns with the recent global agreement on a UN-administered carbon market.

The country’s Regional Voluntary Carbon Market Company (RVCMC) will auction over 2.5 million tons of carbon credits, with proceeds earmarked for climate projects in developing nations. The platform aims to attract both domestic and international buyers, with the goal of becoming one of the world’s largest voluntary carbon markets by 2030.

To ensure the integrity of carbon credits, RVCMC will adhere to strict guidelines set by the Integrity Council for the Voluntary Carbon Market, Riham ElGizy, chief executive officer of the kingdom’s RVCMC said on Tuesday. Projects must meet rigorous standards and be verified by accredited organizations to qualify for trading.

By launching this carbon market, Saudi Arabia aims to not only contributing to global climate action but also unlocking significant financing opportunities for climate projects in developing countries.

Attribution: Bloomberg