Neom, Aramco emerge as top bidders in carbon credits buying

 

Neom, Aramco emerge as top bidders in carbon credits buying

In what is being hailed as the largest-ever auction of voluntary carbon credits, Aramco, Saudi Electricity Company, and Neom subsidiary ENOWA emerged as the top bidders. The auction took place in Nairobi, Kenya's capital, and saw the participation of 16 Saudi and international firms. The event was organized by Saudi Arabia's Regional Voluntary Carbon Market Company (RVCMC), established by the Public Investment Fund and Saudi Tadawul Group.

The auction included the sale of 2.2 million credits, comprising high-quality Corsia-eligible and Verra-registered carbon credits that can benefit buyers across various industries. Corsia refers to the UN's carbon offsetting and reduction scheme for international aviation. Successful bidders also included Gulf International Bank, Aramco's base oils subsidiary Luberef, and the International Islamic Trade Finance Corporation. The clearing price for the auction was set at 23.50 Saudi riyals per ton of CO2e ($6.80 per ton).

The demand for carbon offsets, generated through initiatives like tree planting or adopting cleaner cooking fuel, is expected to rise as companies strive to meet their net-zero emissions targets.

RVCMC CEO Riham ElGizy emphasized the significance of voluntary carbon markets in channeling funds to support climate action and improve livelihoods, particularly in the Global South. Kenya was chosen as an example to underscore the importance of investing in climate projects, despite its relatively small carbon emissions. The country has faced severe droughts that have caused extensive damage to crops, wildlife, and livestock.

In a separate development, Saudi Arabia's sovereign fund recently sold 1.4 million tons of carbon credits during the 6th edition of the Future Investment Initiative conference in Riyadh. Buyers of these credits included Saudi Arabian Oil Co., Olayan Financing Co., and Ma'aden, a mining company. This initiative aligns with the Public Investment Fund's goal of developing 70% of Saudi Arabia's green energy capacity as part of the Saudi Vision 2030.