During the 29th United Nations Climate Change Conference (COP29) in Baku, Azerbaijan, the Saudi-based Regional Voluntary Carbon Market Company (RVCMC) unveiled a new carbon trading platform. This new platform aims to finance global high-quality climate projects through carbon credit auctions and trades. Notably, it plans to expand into the spot market by 2025.
The platform is equipped with advanced digital infrastructure, including satellite imagery and AI verification tools, designed to ensure genuine environmental impact from carbon offset projects. The CEO of RVCMC, Riham El-Gizy, stated that the platform would also offer consulting services to assist buyers in achieving their decarbonization goals and support climate sustainability and carbon neutrality.
RVCMC, founded by the Saudi Public Investment Fund (PIF) and the Saudi Stock Exchange Group, aims to foster the growth of voluntary carbon markets in Saudi Arabia and the greater Middle East and North Africa region. Since its inception in 2022, RVCMC has facilitated several record-breaking auctions.
The platform launch attracted participation from 22 Saudi and international companies, demonstrating significant market interest in sustainability initiatives. The inaugural auction will trade over 2.5 million high-quality carbon credits. Participating businesses include industry leaders such as Saudi Aramco Trading Company (2222.SR), Ma’aden, and Gulf International Bank.
These transactions will fund projects focused on emissions reduction and environmental protection, such as methane capture in waste management, forest reforestation in Ethiopia, and carbon storage technologies in the United States. El-Gizy highlighted the unique advantages of the Saudi market in carbon trading through Islamic financial mechanisms. RVCMC has released the first religious ruling certifying carbon credits as Sharia-compliant commodities, supporting the idea of using carbon credits as collateral instead of traditional items like rice or gold.
RVCMC maintains stringent due diligence standards, with only 10% of submitted projects receiving approval, ensuring high project quality and impact. The majority of carbon credits auctioned on the platform will support removal projects, enhancing their longevity and environmental impact.
El-Gizy emphasized the crucial role of voluntary carbon markets in climate finance, especially in reaching communities typically underserved by traditional finance, such as rural areas in Africa and Saudi Arabia. Voluntary carbon markets help bridge this gap by directing necessary resources to these regions.
