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BAKU: A new carbon exchange platform has been launched at the COP29 conference in Baku, aimed at channeling significant funding into global climate projects. 

Developed by ��������Ƶ’s Regional Voluntary Carbon Market Co., the platform will accelerate emission reduction efforts and strengthen the Kingdom’s role in the carbon credit market by 2030. 

The launch brought together 22 Saudi and international firms, signaling strong market interest and a commitment to sustainable development initiatives. The platform’s inaugural auctions aim to direct significant funding toward high-quality climate projects, particularly in the Global South. 

A Voluntary Carbon Market is a forum where organizations and individuals can purchase credits to offset their emissions by funding projects that reduce or capture greenhouse gases, such as reforestation or renewable energy. 

Unlike regulated markets, participation in VCMs is optional, allowing companies to support climate goals and compensate for emissions they cannot directly eliminate. 

VCMs are crucial for directing finance to environmental projects, especially in developing regions, and are considered a key tool in achieving global net-zero targets. 

The platform launched by RVCMC will offer auction and block trade functionalities, with plans to expand into spot markets by 2025. By providing a robust marketplace for carbon credits, RVCMC aims to bridge critical financing gaps in climate action, especially in regions most affected by climate change. 

The inaugural auction will see over 2.5 million tonnes of high-quality carbon credits traded, with participating companies including industry leaders such as Aramco Trading Co., Ma’aden, and Gulf International Bank. 

These transactions will fund a diverse portfolio of projects focused on emissions reduction and environmental preservation. Notable projects include methane capture in waste management, forest reforestation in Ethiopia, and carbon storage technology in construction in the US. 

A significant portion of the auction’s credits will focus on removal projects, enhancing their durability and environmental impact. 

RVCMC was established by ��������Ƶ’s Public Investment Fund and the Saudi Tadawul Group to foster a thriving voluntary carbon market within the Kingdom and the wider Middle East and North Africa region. 

Since its inception in 2022, the company has facilitated record-breaking auctions, underscoring the region’s growing role in global climate finance. 

This latest launch reinforces ��������Ƶ’s commitment to becoming a central player in the voluntary carbon market, leveraging its resources and infrastructure to address global emissions challenges in line with COP29 goals. 

RIYADH: Dozens of world leaders convene in Azerbaijan on Tuesday for COP29 as the UN Secretary-General warned of the clock ticking for action to limit global temperature rises.

Speaking at the gathering in Baku Antonio Guterres said the world is in the “final countdown” to limit global temperature rise to 1.5 degrees Celsius.

He added that 2024 is “almost certain” to be the hottest year on record.

His comments came as leading figures from governments around the world arrived for the summit, although many top politicians are not attending this year’s summit.

US President Joe Biden, China’s Xi Jinping, India’s Narendra Modi and French leader Emmanuel Macron are among G20 leaders missing the event.

The top priority at COP29 is landing a hard-fought deal to boost funding for climate action in developing countries.

'Developing countries must not leave Baku empty-handed' - UN Secretary-General Antonio Guterres 

Guterres used a speech at COP29 to say the forum “must tear down the walls to climate finance.” 

He set out five elements he believes are critical to success: 

• A significant increase in concessional public finance.
• A clear indication of how public finance will mobilize the trillions of dollars developing countries need.
• Tapping innovative sources, particularly levies on shipping, aviation, and fossil fuel extraction. Polluters must pay.
• A framework for greater accessibility, transparency, and accountability – giving developing countries confidence that the money will materialize
• Boosting lending capacity for bigger and bolder Multilateral Development Banks. 

Voluntary Carbon Markets

An announcement away from the speeches as ��������Ƶ’s Regional Voluntary Carbon Market Co. today launches its voluntary carbon market exchange platform, bringing 22 domestic and international companies on board on its first day of trading.

The launch of the platform is a major milestone in ��������Ƶ’s ambition to become one of the largest voluntary carbon markets in the world by 2030. It aims to scale up the supply and demand of high-quality carbon credits across the Global South and beyond, driving funding to climate projects that require finance, supporting the transition to global net zero emissions.

Speaking in Baku, Riham El-Gizy, RVCMC’s CEO said: “The message coming into COP is clear: To accelerate global decarbonization we must unlock financial flows to critical climate projects on an enormous scale. High integrity voluntary carbon markets can play an important role in bridging the climate finance gap this decade. But institutional grade infrastructure must be put in place to help buyers and sellers scale up private sector participation and achieve the market’s potential.”

RVCMC was established by the Public Investment Fund and Saudi Tadawul Group Holding Co. in October 2022. PIF holds an 80 percent stake and Tadawul Group holds a 20 percent stake in the company.