The Saudi Public Investment Fund declared its plan to build the Riyadh voluntary platform for trading and exchanging carbon insurance and compensation in the Middle East and North Africa area, in collaboration with the Saudi Tadawul Group, as the region’s major platform.
It will be the go-to place for businesses and industries looking to decrease carbon emissions by purchasing or selling high-quality, verified, and certified carbon-equivalent offset credits.
A voluntary trading platform is being developed in collaboration with some regulatory bodies, including the National Committee for the Clean Development Mechanism, to identify methodologies, regulatory frameworks, and technical models that adhere to the highest standards and best practices, achieve the voluntary trading platform’s desired goals, and contribute to the clean development agenda.
His Royal Highness Prince Muhammad bin Salman bin Abdulaziz Al Saud, Crown Prince, Deputy Prime Minister, Chairman of the Council of Economic Affairs and Development, and Chairman of the Board of Directors of the Public Investment Fund have issued statements in this respect.
“These efforts reflect the Kingdom of Saudi Arabia’s leading role in the region, which is to face the challenges of climate change and motivate institutions to reduce carbon emissions, improve the environment, and reduce the negative effects of urban development, making it the ideal location to establish a voluntary trading platform, based on the strength of its financial market and its commitment to sustainable development,” he said.
The Public Investment Fund participates actively in a variety of worldwide projects aimed at minimizing climate change and harmful environmental impacts, such as the “One Planet” program of the International Working Group for Sovereign Wealth Funds. It has a strong presence at a variety of relevant conferences and forums.
Many firms in the Kingdom are attempting to decrease their greenhouse gas emissions, and some worldwide partners are interested in investing in this sector.