RIYADH: The International Islamic Trade Finance Corp. has successfully bid for the Saudi Public Investment Fund’s Voluntary Carbon Market Initiative Auction that resulted in 1.4 tons of carbon credit during the 6th edition of the Future Investment Initiative in Riyadh last week.
A member of the Islamic Development Bank Group, ITFC was among 15 other Saudi and regional entities that took part in the largest carbon credit sale.
“This is a remarkable achievement for ITFC towards innovation in green trade financing and development of sustainable trade, as well as supporting OIC members countries' efforts in addressing climate change challenges,” Hani Sonbol, CEO of ITFC said.
The VCM initiative is a continuation of the PIF’s efforts to support the Kingdom's green agenda and the completion of its $3 billion inaugural green bond, and several renewable projects led by the fund as part of its commitment towards developing 70 percent of Saudi Arabia’s renewable energy capacity.
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.