Saudi Arabia is taking a proactive approach to climate change with the introduction of an innovative greenhouse gas credit scheme.
Set to be launched early next year, the Greenhouse Gas Crediting and Offsetting mechanism will provide companies with the opportunity to offset their emissions by purchasing credits from projects that have actively reduced or removed greenhouse gas emissions.
This initiative, unveiled at the United Nations’ MENA Climate Week in Riyadh, is designed to incentivize the implementation of emission reduction and removal activities on a large scale.
The scheme aims to support and enable climate-related national strategies, policies, and programs. By encouraging companies to take responsibility for their emissions and seek ways to offset them, Saudi Arabia is demonstrating its commitment to combating climate change and achieving sustainability goals.
The Saudi Arabia Credit Scheme, set to be a voluntary and project-based initiative in line with Article 6 of the Paris climate agreement, will allow participation from a wide range of stakeholders.
The mechanism will cover both greenhouse gas and non-greenhouse gas metrics across all sectors. It will be open to both the public and private sectors, as well as subsidiaries of foreign firms. This inclusivity ensures that various industries and organizations can contribute towards reducing emissions and addressing climate change.
There is a growing interest in carbon offsetting, particularly in Saudi Arabia. In June of this year, 16 Saudi firms, including the oil giant Aramco and the Saudi Electricity Company, purchased over 2.2 million tonnes of carbon credits through the Regional Voluntary Carbon Market Company (RVCMC).
These credits are certified and originate from projects that utilize sustainable technologies or remove carbon from the atmosphere. The auction organizer, RVCMC, ensures the credibility and legitimacy of these credits.
This move highlights the commitment of Saudi companies to mitigate their carbon footprint and contribute to global efforts to combat climate change.