Saudi Arabia's Voluntary Carbon Market Company, launched in 2022 as a joint venture between the Public Investment Fund and the Saudi Tadawul Group, has sold over 15 million tons of carbon credits across three major auctions. The auctions took place in Riyadh, Nairobi, and at COP29 in Baku, with total transactions exceeding SAR 350 million. The company operates a regional trading platform compliant with international registries and supports Islamic finance. The market targets hard-to-abate emissions and funds projects in waste management, land rehabilitation, renewable energy, and mangrove planting. It aligns with Saudi Vision 2030 and the goal of net-zero by 2060. Global carbon markets are projected to grow from $2 billion in 2020 to $250 billion by 2050, and the Saudi model emphasizes institutional support and integration with global registries. Critically, the article is a press release from the Saudi Press Agency and lacks independent verification of credit quality or additionality. Readers should assess whether the credits represent real, permanent emission reductions or are primarily a financial instrument. The involvement of state-backed entities raises questions about market independence and transparency.
