RIYADH: Saudi Arabia’s Public Investment Fund auctioned off 1.4 million tons of carbon credits during the 6th edition of the Future Investment Initiative conference in Riyadh.
As many as 15 Saudi, as well as regional, firms participated in what has been labeled as the biggest ever carbon credit sale, according to a statement.
Carbon credits allow companies to emit a specific amount of carbon dioxide or other harmful gasses — with one credit the equivalent of one ton of emissions.
Out of all participants, petroleum refineries firm Aramco, Olayan Financing Co., and mining company Ma’aden purchased the largest number of carbon credits.
Other participants included Saudi Basic Industries Corp., Saudi Motorsport Co., Saudi National Bank, SAUDIA, and Yanbu Cement Co..
The auction offered Verra-registered carbon credits that comply with the Carbon Offsetting and Reduction Scheme for International Aviation.
The sell-off was part of the Voluntary Carbon Market initiative launched by the PIF in an attempt to back the Kingdom’s green journey.
The move comes as the PIF aims to develop 70 percent of Saudi Arabia’s green energy capacity to align with the Saudi Vision 2030.
The auction also falls in line with the PIF’s goal to draw investments and develop innovations to help tackle the effects of climate change, and follows the completion of the wealth fund’s $3 billion inaugural green bond sale.
