Saudi company launches carbon exchange platform at COP29 to reduce emission
Date
11/13/2024 7:58:35 AM
(MENAFN) At the COP29 conference in Baku, a new carbon exchange platform was launched, aiming to channel significant funding into global climate projects. Developed by Saudi Arabia’s Regional Voluntary Carbon Market Co. (RVCMC), this platform is designed to accelerate emission reduction efforts and enhance Saudi Arabia’s influence in the carbon credit market, with the goal of playing a leading role by 2030. The initiative reflects the Kingdom's ongoing commitment to climate action and its strategic positioning in the growing voluntary carbon market.
Riham El-Gizy, CEO of RVCMC, emphasized the platform's potential to drive substantial changes in global climate finance. In an interview with *Arab News*, she highlighted the importance of such high-profile events in attracting buyers and raising awareness about the need for decarbonization. "Auction after auction, awareness grows," El-Gizy explained. She also pointed out that the platform will offer advisory services to help buyers on their decarbonization journeys, contributing to their broader climate sustainability and carbon neutrality objectives.
The launch of the platform saw the participation of 22 Saudi and international firms, signaling strong market interest and a shared commitment to sustainable development. The inaugural auctions are intended to direct funding toward high-quality climate projects, with a particular focus on initiatives in the Global South, where the need for climate finance is most pressing. This strategic approach aims to support projects that can significantly impact the environment and local communities, helping them reduce or capture greenhouse gases.
A Voluntary Carbon Market (VCM) is a marketplace where individuals and organizations can buy carbon credits to offset their emissions by funding projects that either reduce or capture greenhouse gases, such as renewable energy initiatives or reforestation efforts. Unlike regulated carbon markets, participation in VCMs is voluntary, offering companies a way to compensate for emissions they cannot directly eliminate. VCMs are vital in mobilizing finance for environmental projects, particularly in developing countries, and play a crucial role in the global push to meet net-zero emissions targets.
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