The Voluntary Carbon Market Company (VCM), a carbon credit company established by PIF and Saudi Tadawul Group, and Enowa, the energy and water subsidiary of NEOM, have announced a long-term agreement to facilitate the delivery of approximately 30 million tonnes of carbon credits within this decade. The scale and duration of the agreement marks a significant milestone in VCM’s ambition to create a thriving voluntary carbon market in the region.

The deal will see high integrity carbon credits delivered to Enowa from climate action projects from around the world, with most projects based in the Global South and transacted on the VCM platform. The first delivery under the arrangement took place on December 19, 2024.

Riham ElGizy, Chief Executive Officer of VCM, said: “The long-term agreement between VCM and Enowa to facilitate the delivery of over 30 million tonnes of carbon credits by 2030 marks a significant moment in Saudi Arabia’s journey to drive growth in global voluntary carbon markets. It helps Enowa, a company committed to creating a renewable energy system to power NEOM, compensate for today’s emissions while creating sustainable infrastructure for the long term.”

She added: “Equally, the deal aims to give climate action projects in the Global South and beyond funding certainty, so they can plan for the next few years with confidence. To achieve global net zero, climate projects which reduce or remove carbon from our atmosphere need not just finance but certainty too. Enowa’s leadership has been representative of what the VCM exchange platform in Saudi Arabia can help unlock at a time when finance is top of the global climate agenda.”

Jens Madrian, Acting Chief Executive Officer of Enowa, said: “Enowa is striving to ensure NEOM’s energy needs are met sustainably. Over the past two years, we have purchased high-integrity carbon credits from VCM’s auctions. This year, we are delighted to be the first company in Saudi Arabia to agree to a large-scale, long-term agreement with VCM.”

VCM launched Saudi Arabia’s first voluntary carbon credit exchange platform on November 12, 2024. The platform is designed to meet market requirements for a transparent, scalable and increasingly liquid marketplace, by offering:

• Institutional grade infrastructure, to enable transparent and secure transactions

• Price and data discovery for carbon credit projects, key to growing the market globally and providing a price signal on projects from MENA regions

• Open market connectivity, integrated with leading global registries

• Scope to develop specialized infrastructure for trade in carbon credits to enable Islamic Finance

• Auction market, RFQ and block trade functionality, followed by spot market and other functions launching in 2025

The voluntary carbon offset market is expected to grow from USD 2 billion in 2020 to around USD 250 billion by 2050 1 . To promote growth of the voluntary carbon market in Saudi Arabia and the region, VCM’s exchange is being designed to offer buyers and sellers institutional grade infrastructure, enabling fast and secure transactions.

Enowa has been a leading participant in VCM’s previous auctions, which took place in Saudi Arabia in 2022 and in Kenya in 2023. Through its mandate to realize NEOM, Enowa serves as a blueprint for sustainable urban development worldwide, enhancing the planet's future while promoting economic diversification and improving quality of life.

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