The Public Investment Fund is a voluntary regional carbon market company

Today, Monday, the Saudi Public Investment Fund announced the establishment of the Regional Voluntary Carbon Market Company, with 80% ownership of the fund and 20% for the Saudi Tadawul Holding Group.

The fund claimed in a note that the company aims to support companies and sectors in the region to enable them to achieve neutrality zeroas well as ensuring the purchase of carbon credits to reduce carbon emissions in value chains.

The announcement of the Riyadh-based Voluntary Carbon Market Company will contribute to efforts to organize the world’s largest carbon credit trading auction of its kind on October 25, during the Sixth Future Investment Initiative Conference in the capital, Riyadh.

The auction involves the exchange of one million tons of carbon credits and the presentation of certificates of high quality carbon credits, in line with the standard of “CORSIA” registered in the “FIRA” program.

The voluntary carbon credit trading initiative was previously announced by the Public Investment Fund and the Saudi Tadawul Group in September 2021. In which Crown Prince Mohammed bin Salman bin Abdulaziz, chairman of the Fund’s board of directors for public investment, praised the United pioneering role in the region in addressing the challenges of climate change and motivating institutions to reduce their carbon emissions, as an extension of their efforts in this field, which aim to help reduce the negative effects of climate change.

On this occasion, the Deputy Governor and Head of the General Investment Department in Middle East and North Africa at the Public Investment Fund Yazid Al-Humayd said: “The announcement of a voluntary regional private company for the carbon market coincides with the announcement of the first credit trading auction, which represents a step important for the MENA region of Africa, where carbon credit trading markets will contribute to the reduction of carbon emissions, which will make the region in at the forefront of climate action, confirming the Kingdom’s leadership role in addressing climate challenges. “

Al-Humaid added that “the company will play an important role in enhancing the efforts of the Public Investment Fund in supporting the Kingdom’s initiatives to promote investment and innovation to counter the impact of climate change and achieve neutrality. zero by 2060 “.

For his part, the CEO of Saudi Tadawul Holding Group, Ing. Khaled Al-Hussan, said: “We are proud of the fundamental role played by the group in supporting the direction of the Kingdom towards a sustainable future and we constantly look forward to motivate various institutions to adopt the approach of disclosure of environmental and social governance in the Saudi financial market, this is for a better and more transparent future and we are delighted to be a strategic and operational partner in launching the new company, which we believe is of great importance in supporting the goals of Kingdom’s Vision 2030 and in realizing the group’s ambition to be a gateway for investors from all over the world to the Middle East and North Africa “.

“The auction represents a first step in paving the way for the global voluntary market ecosystem for carbon credit trading and we expect it to be the largest auction of its kind globally, with a total of one million tons of carbon credits available for trading, “said Reham El-Gezy, Director of the Voluntary Market Initiative for Carbon Credit Trading.

The Public Investment Fund plays a key role in supporting the Green Kingdom’s efforts as an engine for economic development and diversification in the Kingdom The Voluntary Carbon Credit Trading Market Initiative is a continuation of the Fund’s initiatives in this field, including the Investment Fund Announcement Fund of the completion of the first offering of $ 3 billion international green bonds and the Public Investment Fund’s renewable energy program, which includes the development of 70% of generation capacity of renewable energy in the Kingdom by 2030 in in line with the goals of Kingdom’s Ambitious Vision.

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