Arab News, Sunday, Sep 5, 2021 | Muharram 28, 1443
Saudi Arabia’s PIF and Tadawul Group plan voluntary carbon trading platform for MENA region
Saudi Arabia:
Saudi Arabia’s Public
Investment Fund in collaboration with the Saudi Tadawul Group has announced
plans to establish an exchange for carbon offsets and credits within the MENA
region as part of efforts to combat climate change.
Under the initiative announced on Friday, the
platform will become the primary destination for companies and
institutions seeking to reduce their emissions through the trading of verified,
approved and high-quality carbon equivalent credits certificates, SPA reported.
The voluntary platform is part of efforts to align
with regulatory entities, such as the Designated National Authority for Clean
Development Mechanism, along with local and international expertise to identify
regulatory and operational methods, business models and governance practices to
support the reduction of climate change effects and contribute to Paris
Agreement goals.
Saudi Arabia's Crown Prince Mohammed bin Salman,
chairman of the PIF, said: “These efforts are part of Saudi Arabia’s leading
role within the region to contribute to the reduction of climate change effects
as part of several initiatives that were launched with that regard, through
pursuing additional methodologies such as creating a motivational environment
for companies and institutes to reduce their emissions.”
“Moreover, and taking Saudi Arabia capital market
strength, its initiatives and aspirational projects into consideration, we are
well-positioned to incubate and host this exchange platform,” he said.
Yasir Othman Al-Rumayyan, governor of the PIF,
said: “Looking at the exemplary projects we are working on, which generate their
supply of energy from renewable sources and utilize sustainable material, we
have developed deep knowledge on how to contribute to this cause."
“We have a strong financial background that we
will deploy to create a suitable environment for the voluntary exchange
platform, and we will capitalize on our partnerships and the strength of our
investment portfolio, in addition to exploiting the efforts led by the Sovereign
Wealth Funds Group that aim to enhance the effect of its investments on the
environment,” he said.
The PIF has a key role in international
initiatives that aim to reduce effects of climate change, such as the One Planet
Sovereign Wealth Funds Working Group, as well in related conferences and forums.