The Public Investment Fund (PIF) -- Saudi Arabia’s sovereign wealth fund -- in collaboration with the Saudi Tadawul Group, announced on Thursday an intent to establish Riyadh Voluntary Exchange Platform for offsets and carbon credits within the Middle East and North Africa Region.
This initiative will come to be the primary destination and main platform for companies and institutes that target reducing their emissions, or contributing towards that, through the trading of verified, approved and high quality carbon equivalent credits certificates, according to the Saudi Press Agency (SPA).
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Saudi Crown Prince Mohammad bin Salman, in support of this initiative, stated: “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 through pursuing additional methodologies, such as creating a motivational environment for companies and institutions to reduce their emissions.
“Taking Saudi Arabia’s capital market strength, its initiatives, and aspirational projects into consideration, we are well-positioned to incubate and host this exchange platform,” the Saudi Crown Prince said.
The establishment of the voluntary exchange platform comes as part of extended alignment efforts with regulatory entities, such as the Designated National Authority for Clean Development Mechanism (DNA), along with local and international expertise to identify the best regulatory and operational methodologies, business models, and governance practices that will support the reduction of climate change effects, as well as to contribute to Paris Agreement goals.
“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 adequately,” Yasir Othman Al-Rumayyan, the Governor of the PIF, said.
“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 Fund Group that aim to enhance the effect of its investments on the environment.”
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