5 leading Saudi companies join PIF’s Voluntary Carbon Market Initiative

5 leading Saudi companies join PIF’s Voluntary Carbon Market Initiative

The Saudi Public Investment Fund (PIF) has revealed that five leading Saudi Arabian businesses have signed a separate non-binding Memorandum of Understanding (MoU) to become the first potential partners of the MENA regional Voluntary Carbon Market (VCM).

The announcement follows the VCM initiative led by PIF and Tadawul in September 2021, in which His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince, Deputy Prime Minister, Chairman of the Council of Economic and Development Affairs and Chairman of PIF, stated that the Kingdom will play a leading role in contributing to the reduction of the impact of climate change effects.

The partners are Aramco, SAUDIA, ACWA Power, Ma’aden, and ENOWA, a subsidiary of NEOM. As per the agreement, the Partners will support PIF in the development of the VCM through the supply, purchase and trading of carbon credits as the market is expected to be established in 2023. Additional partners will be announced in the coming months ahead of an initial round of auctions expected in the final quarter of this year.

Saudi Arabia aims to reach Net Zero by 2060 through the Carbon Circular Economy approach, in line with its development plans and enabling its economic diversification. These efforts