• Plan of action follows from Global South Carbon Markets Conference: Riyadh Edition, convened by S&P Global Commodity Insights.
  • The conference was held ahead of COP28 and formed part of FII7 program
  • Carbon markets and the voluntary carbon credits they trade are key to financing climate action in the Global South and reaching net zero goals

Riyadh:- Government and industry leaders from across the Global South have called for progress in accelerating the development of voluntary carbon markets, following the world’s first Global South Carbon Markets Conference to address funding for climate action, hosted in Riyadh.

The conference was convened by S&P Global Commodity Insights. The Regional Voluntary Carbon Market Company (RVCMC) is strategic partner of the conference and is owned by the Public Investment Fund (PIF) and Saudi Tadawul Group. RVCMC is a global leader in voluntary carbon markets, having conducted the world’s largest-ever auction of voluntary carbon credits in June 2023.

The conference brought together leaders from government, business, international industry bodies and carbon credit project developers at the Global South Carbon Markets Conference: Riyadh Edition on October 26, 2023.

Highlights from the conference included calls for action from the Global South:

  • All carbon credits must represent real and measurable emissions reduction or removal.  Integrity is central to building confidence.  The industry would benefit from a universally accepted set of standards.
  • Harmonization is needed on carbon credit methodologies in relation to Article 6.4 of the Paris Agreement.
  • Consistent accounting, tax and legal treatment would encourage demand.
  • Fair benefit sharing with local communities is a must. Ensuring appropriate dividends to communities is not only equitable but may also encourage engagement, which ultimately increases a project’s chance of success.
  • Voluntary carbon markets present an opportunity to build new South-South corridors, bringing together demand and supply, as the balance of climate action shifts. 
  • Public-private sector co-operation would help get funds into the hands of communities best positioned to execute climate action projects. 

Rania Nashar, Chairwoman of RVCMC, said: “Many of the leading figures in the global world of voluntary carbon markets have congregated here in Riyadh, for what has been a groundbreaking summit. We are proud of our efforts at RVCMC in playing a key role in Saudi Arabia’s decarbonization efforts in line with the Saudi Green Initiative. Through the impactful conversations that happened at our summit, it is clear that carbon credits have an important role to play – not only in helping the world drive action to achieve net zero goals, but equally in ensuring climate finance reaches communities across the Global South.”

Riham ElGizy, Chief Executive Officer, RVCMC, said: “What we have agreed today is a clear agenda for everyone involved in voluntary carbon markets globally, aligning the industry’s call to action ahead of COP28, and bringing together perspectives from all stakeholders in the ecosystem of voluntary carbon markets. Voluntary carbon markets have great potential to spur climate action globally, while providing the Global South with financial resources to support their development and address the impacts of climate change.”

Lyn Tattum, Head of Conferences, Training and Strategic Media for S&P Global Commodity Insights, said: “We are pleased to have partnered with RVCMC to produce this important inaugural carbon markets event in Riyadh, supported by PIF. The Global South Carbon Markets conference provided an important venue for critical dialogue on win- win avenues to help manage carbon emissions and ensure judicious growth in the Global South. The discussions among an engaged global community here will provide a foundation for this important conversation going forward.” 

-Ends-

For commercial enquiries about participating in RVCMC’s voluntary carbon markets, please contact: MVCM@pif.gov.sa

For media enquiries about RVCMC, please contact: RVCMC@teneo.com

ABOUT RVCMC

RVCMC was established by Public Investment Fund (PIF) and Saudi Tadawul Group Holding Company (Saudi Tadawul Group) in October 2022. PIF holds an 80% stake and Tadawul Group holds a 20% stake in the company. RVCMC is creating a credible voluntary carbon market at speed and at scale with global impact. The market prioritizes high quality carbon credits and positive climate action. The company is creating an ecosystem that includes an investment fund for climate mitigation projects, an exchange for the trading of carbon credits and advisory services that help organizations understand how to decarbonize.

RVCMC successfully auctioned 2.2 million tons of voluntary carbon credits in the largest-ever carbon credit sale that was held in Nairobi, Kenya on June 14th, 2023. The auction offered high-quality CORSIA-eligible and Verra-registered carbon credits. The Nairobi event was the second sale of carbon credits held by RVCMC. In October 2022, RVCMC hosted its first auction at the sixth Future Investment Initiative (FII) in Riyadh. This marked what was then the largest-ever carbon credit sale auction with 1.4 million tons of carbon credits successfully auctioned: enough to compensate for the annual emissions of approximately 250,000 gasoline-powered family cars.

ABOUT S&P Global Commodity Insights

At S&P Global Commodity Insights, our complete view of global energy and commodity markets enables our customers to make decisions with conviction and create long-term, sustainable value. 

We are a trusted connector that brings together thought leaders, market participants, governments, and regulators and we create solutions that lead to progress. Vital to navigating commodity markets, our coverage includes oil and gas, power, chemicals, metals, agriculture, shipping and energy transition. Platts® products and services, including leading benchmark price assessments in the physical commodity markets, are offered through S&P Global Commodity Insights. S&P Global Commodity Insights maintains clear structural and operational separation between its price assessment activities and the other activities carried out by S&P Global Commodity Insights and the other business divisions of S&P Global. 

S&P Global Commodity Insights is a division of S&P Global (NYSE: SPGI). S&P Global is the world’s foremost provider of credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets. With every one of our offerings, we help many of the world’s leading organizations navigate the economic landscape so they can plan for tomorrow, today. For more information visit https://www.spglobal.com/commodityinsights.

Follow us on LinkedIn https://www.linkedin.com/company/voluntarycarbonmarket/

Follow us on Twitter: https://twitter.com/vcm_ar https://twitter.com/vcm_en

View our website: https://vcm.com.sa