Saudi Arabia plans to introduce its own national carbon credit scheme, designed to allow companies to offset their emissions. The announcement was made during the United Nations’ Middle East and North Africa Climate Week in Riyadh.
Views of the Alsoda’s mountains at Abha city, Saudi Arabia.
The Greenhouse Gas Crediting and Offsetting Mechanism (GCOM), as outlined on its own website, seeks to encourage large-scale emissions reduction and removal activities that align with national environmental strategies, policies, and programmes.
Participation in this scheme is entirely voluntary and will be project-specific, encompassing both greenhouse gas and non-greenhouse gas metrics across all sectors. Notably, it is open to both public and private sectors and subsidiaries of foreign enterprises. The proceeds from credit sales will fund initiatives aimed at nature conservation.
Read more: Singapore unveils its own carbon credit guidelines
Saudi Arabia's strategic move follows last year's announcement by its sovereign wealth fund, the Public Investment Fund (PIF), regarding the establishment of the Regional Voluntary Carbon Market Company (RVCMC) in collaboration with the Tadawul Group.
Furthermore, approximately 16 Saudi companies, including industry giants like Saudi Aramco and the Saudi Electricity Company, have procured over 2.2 million tonnes of carbon credits this year, sourced from projects focused on emissions avoidance through sustainable technologies and carbon removal.
Read more: How are carbon credits issued?
Saudi Arabia's commitment to launching its carbon credits scheme positions it as one of the world's pioneers in this field, with operational plans for the coming year. This aligns with Article 6 of the Paris Agreement and complements the nation's ambition to achieve net-zero emissions by 2060. According to McKinsey, this sector is projected to be valued at over $50 billion by 2030.
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