RIYADH: Saudi Arabia has emerged as an influential player in carbon markets through its Regional Voluntary Carbon Market Co., the Saudi Press Agency reported on Tuesday.
The company runs a regulated marketplace in which public and private entities can buy and sell certified carbon credits.
Such carbon credits represent verified reductions or removals of greenhouse gas emissions that companies can buy to help offset their environmental impact.
Fadi Saadeh, the CEO of the RVCMC, said the company was created to turn climate action into a sustainable economic and investment opportunity by building a regional carbon market with strong governance and transparency.
It aligns with the Saudi Green Initiative and the Middle East Green Initiative, and supports the Kingdom’s net-zero 2060 goal under the circular carbon economy approach.
According to the Public Investment Fund, the company was established with PIF holding an 80 percent stake and Saudi Tadawul Group the remaining 20 percent.
The SPA said the company held carbon-credit auctions in Riyadh in 2022, Nairobi in 2023 and Baku during COP29 in 2024. The Baku auction attracted more than 40 local and international companies, with total trading exceeding SR350 million with more than 15 million carbon credits sold.
The company launched the region’s largest carbon-credit trading platform in November 2024, supporting auctions, requests for quotes and off-platform transactions while strengthening transparency and alignment with international registries.
The market could help attract sustainability-linked investment while supporting related industries such as carbon verification and environmental consulting.
Yara Yasser Elborolosy, a climate researcher at King Abdullah University of Science and Technology, said the market encouraged investment in high-integrity projects, including waste management, land rehabilitation, renewable energy and mangrove restoration.
