Aramco and several other Saudi companies this week bought more than 2.2 million tons of carbon credits in the largest-ever voluntary carbon credit auction, Oil Price reported.
The Regional Voluntary Carbon Market Co (RVCMC), the organizer of the auction held in Kenya, was launched at the end of last year by the Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund, the Saudi Tadawul Group Holding Co.
In the auction this week, Saudi Aramco, the world’s largest oil firm, purchased the largest number of credits, along with Saudi Electricity Company and ENOWA, a subsidiary of NEOM, the carbon market company said.
The basket of credits in the auction included 18 projects representing a mix of carbon dioxide (CO2) avoidance and removal, including projects such as improved clean cookstoves and renewable energy projects. Three-quarters of the carbon credits originated from countries across the Middle East, North Africa, and Sub-Saharan Africa, including Kenya, Uganda, Burundi, Rwanda, Morocco, Egypt, and South Africa.
“Our aim is to be one of the largest voluntary carbon markets in the world by 2030, one that enables compensation of hundreds of millions of tonnes of carbon emissions per year and contributes to global Net Zero goals,” said Riham ElGizy, CEO of RVCMC.
Last year, Aramco signed a Memorandum of Understanding (MoU) with PIF to support the establishment of the Regional Voluntary Carbon Market in Riyadh and participated in its inaugural auction, where 1.4 million carbon credits were sold, of which 650,000 were purchased by Aramco, the Saudi oil giant said in its 2022 Sustainability Report published on Thursday.