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On Monday, Saudi Arabia's Public Investment Fund announced the establishment of the Regional Voluntary Carbon Market Company with Saudi Tadawul Group Holding Company. In a statement, the Kingdom's sovereign wealth fund said it would hold an 80% stake in the company while Tadawul Group will hold the other 20%.
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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.
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Headquartered in Riyadh, the company’s announcement 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.
Why it matters
The company’s establishment is a continuation of PIF initiatives to support Saudi Arabia’s green agenda. Earlier this month, it raised $3 billion through its first bond issuance as it considers financing or refinancing its investments in renewable energy, energy efficiency, green buildings, and clean transport.
