Saudi firm launches carbon exchange platform at COP29 to drive emission reductions

Saudi firm launches carbon exchange platform at COP29 to drive emission reductions
Saudi Arabia’s Regional Voluntary Carbon Market Co. launched a carbon exchange platform at the COP29 conference in Baku. Photo/Supplied
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Updated 13 November 2024
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Saudi firm launches carbon exchange platform at COP29 to drive emission reductions

Saudi firm launches carbon exchange platform at COP29 to drive emission reductions
  • Platform will accelerate emission reduction efforts and strengthen the Kingdom’s role in the carbon credit market by 2030

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 Saudi Arabia’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. 

Speaking to Arab News, Riham El-Gizy, CEO of RVCMC, underscored the platform’s potential to drive lasting change in global climate finance. She noted that such high-profile launches serve not only to attract more buyers but also to enhance market awareness. 

“Auction after auction, awareness grows, and it’s not just about the event itself,” El-Gizy said. “We are launching advisory services to help buyers on their decarbonization journeys, supporting their climate sustainability and carbon neutrality goals,” she added.

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. 

El-Gizy highlighted the Saudi market’s unique advantage through Islamic finance mechanisms. “We’ve worked with the Islamic Corporation for the Development of the Private Sector to issue the first-ever fatwa allowing carbon credits as Shariah-compliant commodities,” she said. 

“Imagine if mortgages were backed by carbon credits rather than traditional commodities like rice or gold. This would funnel more capital into projects benefiting humanity and the environment.”

The Islamic finance sector in Saudi Arabia, valued at $500 billion, offers immense potential to drive liquidity into the carbon market.

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. 

This transparency is built on digitized infrastructure, employing tools like satellite imagery and AI for verification, ensuring that carbon offsets deliver real environmental impact.

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. 

El-Gizy elaborated on their strict standards, saying: “We maintain rigorous due diligence. Only 10 percent of the projects submitted are accepted, ensuring high quality and impact.”

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

RVCMC was established by Saudi Arabia’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. 

Reflecting on the broader significance of COP29, El-Gizy emphasized the essential role of voluntary carbon markets in climate finance, particularly in reaching underserved communities.

“Conventional finance often fails to reach rural areas in Africa and Saudi Arabia,” she said, adding: “The voluntary carbon market fills this gap, channeling much-needed resources where they are most needed.”

This latest launch reinforces Saudi Arabia’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.


Shell and Equinor to form UK oil and gas joint venture

Shell and Equinor to form UK oil and gas joint venture
Updated 16 sec ago
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Shell and Equinor to form UK oil and gas joint venture

Shell and Equinor to form UK oil and gas joint venture
  • Shell and Equinor to each own 50% of joint venture
  • Will produce over 140,000 barrels of oil equivalent per day

COPENHAGEN/LONDON: Shell and Norway’s Equinor will merge their British offshore oil and gas assets into an equal joint venture, they announced on Thursday.
The venture, to be based in Aberdeen, Scotland, is expected to produce over 140,000 barrels of oil equivalent per day (boed), with completion of the deal expected by the end of 2025.
“The new company will...provide a long-term sustainable future for individual oil and gas fields and platforms, helping extend the life of this crucial sector for the benefit of the UK,” Shell and Equinor said in a statement.
While the new entity would become the British North Sea’s biggest independent producer, there is no intention to conduct an initial public offering, Shell Upstream Director Zoe Yujnovich told reporters.
The ageing British North Sea basin, where production started in the 1970s, has seen a steady exit of oil companies in recent decades as production declined from a peak of 4.4 million boed at the start of the millennium to around 1.3 million boed today.
The British government’s decision to impose a windfall tax on North Sea producers following a surge in energy costs in 2022 has put further pressure on producers to reduce investment and exit the basin.
The North Sea Transition Authority regulator has forecast output will decline to fewer than 200,000 boed by 2050.
Shell UK’s output stands at over 100,000 boed and Equinor currently produces some 38,000 boed per day in Britain, the companies said.
Equinor is currently developing the Rosebank oilfield, one of the last known major oil reservoirs in Britain, while Shell is developing the Jackdaw gas field.
The new company will include Equinor’s stakes in the Mariner, Rosebank and Buzzard fields, and Shell’s holdings in Shearwater, Penguins, Gannet, Nelson, Pierce, Jackdaw, Victory, Clair and Schiehallion, the Norwegian group said.
A range of exploration licenses will also be part of the transaction, it added.
Equinor will retain ownership of the Utgard, Barnacle and Statfjord cross-border assets between Norway and Britain, as well as its offshore wind portfolio including Sheringham Shoal, Dudgeon, Hywind Scotland and Dogger Bank, it said.
It will also retain its hydrogen, carbon capture and storage, power generation, battery storage and gas storage assets, it added.
Shell will keep its interests in the Fife NGL plant, St. Fergus Gas Terminal and floating wind projects under development, MarramWind and CampionWind.
Shell UK will also continue as the technical developer of Acorn, Scotland’s largest carbon capture and storage project, Equinor said. 


COP16: Saudi Arabia urges private sector to bridge land restoration funding gap

COP16: Saudi Arabia urges private sector to bridge land restoration funding gap
Updated 53 min 37 sec ago
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COP16: Saudi Arabia urges private sector to bridge land restoration funding gap

COP16: Saudi Arabia urges private sector to bridge land restoration funding gap

RIYADH: Saudi Arabia’s UN Convention to Combat Desertification COP16 Presidency has called on the private sector to increase funding for land restoration efforts, highlighting a critical shortfall in private investment. 

The appeal, made during Land Day, the first of the seven thematic days at COP16, aligns with the Kingdom’s vision to address the interconnected challenges of land degradation, desertification, and drought on a global scale. 

According to a recent UNCCD report, only 6 percent of financial commitments for land resilience and drought restoration come from private sector sources. This underlines a funding gap, which threatens global efforts to combat land degradation.  

Deputy Minister for Environment and Advisor to the UNCCD COP16 Presidency, Osama Faqeeha, said: “If the international community is to deliver land restoration at the scale required, then the private sector simply must ramp up investment.”

He said that the latest UNCCD findings show a worrying funding gap in the efforts to combat land degradation, desertification, and drought.  

UNCCD findings have highlighted the cost of inaction, with the potential for the global economy to lose $23 trillion by 2050 due to land degradation, desertification and drought. 

Faqeeha underscored the responsibility of the private sector, adding: “For decades, businesses have profited from land. Now is the time to embrace restoration and invest in future-proofing the foundations of businesses, industries, and whole economies.” 

At COP16 in Riyadh, Faqeeha highlighted that Saudi Arabia is working to mobilize both the public and private sectors to further “incentivize investment, and ultimately, help unlock a potential trillion-dollar restoration economy.” 

During the COP16 opening press conference on Dec. 2, Faqeeha stated that businesses could help by investing in infrastructure and integrating drought resilience, sustainable land management, and climate resilience into their operations. 

The deputy minister emphasized that environmental protection must become a core element of business strategy: “That needs to be a visible and tangible financial contribution of the private sector in land conservation.” 

His calls for greater private sector involvement align with Saudi Arabia’s growing environmental initiatives, emphasizing the need for collaboration between government and businesses in addressing pressing ecological challenges.   

Delivering the keynote address at the Business for Land forum, Saudi Arabia’s Minister of Environment, Water, and Agriculture and COP16 President, Abdulrahman Al-Fadli, said: “Through our Presidency of COP16, we will work to make this COP a launchpad to strengthen public and private partnerships and create a roadmap to rehabilitate 1.5 billion hectares of land by 2030.”  

The Business for Land forum, held as part of Land Day, brought together leaders from business, government, and civil society to explore the role of finance, policy, and private enterprise in addressing land degradation.  

“We really need to look at the entire spectrum of capital that is available, from philanthropic, corporate social responsibility, development finance, blended, looking at subsidies, and also private equity, mainstream capital, and look at how we can continue to grow new opportunities,” said Gim Huay Neo, managing director of the World Economic Forum. 

The discussions on Land Day also highlighted the unique challenges facing rangelands — natural grasslands that sustain livestock and wildlife while serving as a crucial carbon reservoir.  

According to the UNCCD, rangelands account for 54 percent of all land cover but are facing acute degradation, with over 50 percent already degraded. 

Speaking on the importance of preserving these ecosystems, Faqeeha said: “Rangelands are a vital ecosystem for people around the world, nurturing lives and livelihoods.” 

He added: “The continued depletion of these vital lands is driving food insecurity, climate change, biodiversity loss, and forced migration.” 

Discussions on the theme Protecting and Restoring Rangelands provided participants with insights into science-backed solutions for combating land degradation, emphasizing the role of finance in the circular economy. 

Rio Conventions Synergies 

Land Day also featured the Rio Convention Synergies dialogue, which built upon progress made earlier this year at global events, including the UN General Assembly, CBD COP16 in Colombia, and COP29 in Azerbaijan.  

The dialogue focused on the interconnected challenges of land degradation, biodiversity loss, and climate change, exploring shared solutions to address these critical issues. 

Local efforts in sustainability 

The Kingdom’s Agricultural Development Fund is showcasing its commitment to environmental sustainability and sustainable agriculture at COP16. 

Through active participation in conference sessions and the exhibition, the ADF highlights its focus on vegetation cover restoration, water efficiency, and energy optimization.  

Spokesperson Habib Abdullah Al-Shammari emphasized the fund’s support for initiatives like the Sustainable Agricultural Rural Development Program, which finances rural farmers to optimize the sustainable use of agricultural and water resources, the Saudi Press Agency reported. 

Al-Shammari also noted the ADF’s backing for modern agricultural technologies, organic farming, and food processing to reduce waste and enhance local food security. 

With investments in cutting-edge technologies like artificial intelligence and robotics, and projects producing native tree seedlings using reclaimed water, the ADF’s efforts align with the broader sustainability and innovation themes of COP16. 

UNCCD COP16, taking place from Dec. 2–13, 2024, at Boulevard Riyadh World, marks the 30th anniversary of the UNCCD under the theme Our Land. Our Future. The conference aims to foster multilateral action on critical issues, including drought resilience, land tenure, and sand and dust storms.


Oil Updates - prices slightly firmer ahead of OPEC+ supply decision

Oil Updates - prices slightly firmer ahead of OPEC+ supply decision
Updated 05 December 2024
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Oil Updates - prices slightly firmer ahead of OPEC+ supply decision

Oil Updates - prices slightly firmer ahead of OPEC+ supply decision
  • Market eyes extension of production cuts
  • US crude stockpiles fall more than expected

SINGAPORE: Oil prices were mostly stable on Thursday ahead of an OPEC+ meeting later in the day, with investors waiting to see what the producer group would do next on supply cuts while also monitoring geopolitical tension in the Middle East, according to Reuters.
Brent crude futures rose 6 cents, or 0.08 percent, to $72.37 a barrel by 7:00 a.m. Saudi time, while US crude futures were at $68.61 a barrel, up 7 cents, or 0.10 percent.
Both benchmarks fell nearly 2 percent on Wednesday. A single bank sold a large volume of US oil futures contracts in early afternoon trading on Wednesday, a person with direct knowledge of the matter said, pushing prices down.
The Organization of the Petroleum Exporting Countries and its allies in OPEC+ are likely to extend their latest round of oil production cuts by at least three months from January when it meets online at 2:00 p.m. Saudi time on Thursday, OPEC+ sources told Reuters, to provide additional support for the oil market.
OPEC+ has been looking to phase out supply cuts through next year.
“Market participants are closely watching to see if OPEC+ will focus on bolstering prices by extending production cuts, or opt to defend its share of the global crude oil market by easing those cuts,” said Satoru Yoshida, a commodity analyst with Rakuten Securities.
“The OPEC+ decision may prompt a short-term reaction, but the oil market is likely to rise by year-end on expectations of a US economic recovery under the Trump administration and ongoing Middle East tensions,” he said.
For now, the uncertainty kept prices from recovering.
“As the production decision from OPEC+ awaits, there may be some de-risking as some investors price for the scenario that OPEC+ may disappoint,” said Yeap Jun Rong, market strategist at IG.
“I think it has become somewhat clear that OPEC+ hands are tied, and with a potential increase in oil production from a Trump Administration coming 2025, their aim to prop up prices may be more challenging,” Yeap added.
A larger-than-expected draw in US crude stockpiles last week also provided some support to prices.
US crude stocks fell more than expected last week as refiners ramped up operations, the Energy Information Administration said. Gasoline and distillate stockpiles rose by more than expected during the week.
In the Middle East, Lebanon’s Hezbollah has been significantly degraded militarily by Israel, but the Iran-backed group will likely try to rebuild its stockpiles and forces and pose a long-term threat to the US and its regional allies, four sources briefed on updated US intelligence told Reuters.
Israel said on Tuesday it would return to war with Hezbollah if their truce collapses and that its attacks would go deeper into Lebanon and target the state itself.
Meanwhile, Donald Trump’s Middle East envoy has traveled to Qatar and Israel to kick-start the US president-elect’s diplomatic push to help reach a Gaza ceasefire and hostage release deal before he takes office on Jan. 20, a source briefed on the talks told Reuters.


NEOM Green Hydrogen targets global market leadership: CEO 

NEOM Green Hydrogen targets global market leadership: CEO 
Updated 05 December 2024
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NEOM Green Hydrogen targets global market leadership: CEO 

NEOM Green Hydrogen targets global market leadership: CEO 
  • Project serves as a model for large-scale hydrogen production
  • Plant will be powered entirely by solar and wind energy, with a 2.2-gigawatt electrolyzer designed for continuous hydrogen production

RIYADH: NEOM Green Hydrogen Co., part of Saudi Arabia’s futuristic city NEOM, is building a foundation for a transformative clean energy sector, aiming for global leadership rather than merely establishing the world’s largest production plant, said its CEO. 

In an interview with Arab News on the sidelines of the Saudi Green Initiative Forum, Wesam Al-Ghamdi emphasized the project’s broader objectives, highlighting its alignment with Saudi Arabia’s Vision 2030 and the country’s decarbonization and economic transformation goals. 

“When we are in production by December 2026, the 1.2 million tonnes of ammonia we’re going to be producing is equivalent to decarbonizing 22,000 heavy trucks. That’s up to 5 million tonnes of carbon emissions saved,” Al-Ghamdi said.  

“But even beyond that, it goes to us building NEOM Green Hydrogen, building the industry in Saudi Arabia, building the skill sets and the know-how within the Kingdom,” he said.   

The CEO noted that the project also serves as a model for large-scale hydrogen production, positioning Saudi Arabia as a leader in the global hydrogen economy. 

The plant will be powered entirely by solar and wind energy, with a 2.2-gigawatt electrolyzer designed for continuous hydrogen production. Construction is progressing rapidly, with over 60 percent of key infrastructure completed, including the hydrogen processing plant, solar facility, and wind farm.  

“To date, we have received and installed every major piece of equipment,” Al-Ghamdi revealed, pointing to critical milestones such as the installation of electrolyzers, hydrogen storage systems, and ammonia tanks, all contributing to the plant’s readiness for operation. 

In addition to construction, NGHC is focused on building its operational capabilities by recruiting skilled professionals and forging partnerships with educational institutions to develop a strong local talent pool. 

“We are also building the company today in terms of the operation and maintenance procedures, policies, and recruitment,” Al-Ghamdi said.  

Looking ahead, NGHC is preparing for the future by establishing a Hydrogen Innovation Development Center, which will operate a test electrolyzer to refine processes and train engineers ahead of full-scale operations. 

The company has also secured key partnerships to ensure the project’s long-term success. These include agreements with Thyssenkrupp for R&D on the technology, Baker Hughes to localize manufacturing of hydrogen compressors, and long-term service agreements with suppliers like Envision for wind turbines. Additionally, NGHC has partnered with Topsoe for ammonia plant technology. 

The scale and ambition of the project aim to position Saudi Arabia as a global leader in the hydrogen market. NGHC has also signed a 30-year offtake agreement with Air Products, allowing its hydrogen output to be converted into ammonia for easier transport and distribution to international markets.  

This strategic partnership ensures the plant can meet the growing global demand for hydrogen, particularly in the heavy transport and industrial manufacturing sectors. 

Reflecting on the significance of the project, Al-Ghamdi described it as more than just an industrial endeavor.  

“Our existence by itself is the answer,” he said when asked about how the project will scale the Kingdom’s clean energy transition.  

“We’re actually building the hydrogen production at the scale no one has ever attempted to. This scale is definitely the blueprint for everybody else to follow, to build at this scale. So, the world can get the demand of hydrogen.” 


PIF-owned Soudah Development sets sustainability as core of vision for Saudi luxury destination

PIF-owned Soudah Development sets sustainability as core of vision for Saudi luxury destination
Updated 7 min 51 sec ago
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PIF-owned Soudah Development sets sustainability as core of vision for Saudi luxury destination

PIF-owned Soudah Development sets sustainability as core of vision for Saudi luxury destination

RIYADH: Soudah Development, a company backed by the Public Investment Fund, is placing sustainability at the core of its plan to transform Saudi Arabia’s southern region into a premier ultra-luxury destination.  

The company's commitment to ecological preservation and long-term climate resilience was highlighted at COP16 in Riyadh. 

Speaking to Arab News on the sidelines of COP16 in Riyadh, Srdan Susic, chief destination sustainability, highlighted the company’s approach to integrating environmental concerns with development goals. “We believe that without nature, you don’t have the people. Without people, you don’t have heritage. Without nature, without heritage, you don’t have a destination that we want to build,” he said.   

Soudah’s sustainability strategy includes proactive climate adaptation, ecosystem restoration, and rewilding. To date, the company has planted nearly 250,000 native trees, with a goal of one million by 2030. In addition, flagship species have been reintroduced into protected areas to promote natural recovery.  

“We want our ecosystems to continue providing ecosystem services for the communities who live there and for future visitors,” Susic added.  

The company is also focused on preparing for the long-term challenges of climate change. “Climate change adaptation is a process where you say there is climate change, there are going to be negative effects. Let me get as better prepared as I can for the future to mitigate these effects,” Susic explained.  

He emphasized that this approach would not only ensure sustainability but also enhance operational efficiency and financial viability. 

“Our hotel and other asset operators will be more willing to come to us because we are aware of our sustainability goals. Our insurers, the companies who will insure our assets for the next 40, 50, or 60 years of operation, will charge us less money because we know what the risks are and how to mitigate them.” 

Located at 3,015 meters above sea level, the Soudah Development project will feature 3,000 ultra-luxury hotel rooms, villas, and second homes, along with retail and infrastructure developments. 

It is expected to create jobs and provide new economic opportunities for local communities. “Soudah is very proud that we are a very important part of this vision and that we are helping to reduce the oil dependency of this country,” Susic said. 

Partnerships and future plans   

The company is finalizing several memoranda of understanding with government entities and a royal commission, aimed at supporting reforestation efforts and increasing the region’s biodiversity.  

One such agreement, with the Saudi Coffee Co., will involve planting coffee trees to boost both the local environment and the economy. “The agreements Soudah is planning to sign by the end of the year are very implementable, very efficient, and very precise,” Susic noted. 

Soudah Development’s efforts align with Saudi Arabia’s broader economic diversification goals. “We believe that Saudi Arabia is doing a big shift in its economic planning for the next generation to come,” Susic said.  

With a focus on tangible outcomes, Soudah Development aims to lead by example. “If you read our sustainability reports, you will see that we use past tense — we have done a lot,” Susic said. 

As COP16 highlights global sustainability initiatives, Soudah Development’s work underscores how luxury destinations can be developed while preserving nature and supporting local communities.