New PIF company to hold world’s largest-ever carbon credit auction

REUTERS/Mike Hutchings

Saudi Arabia’s Public Investment Fund (PIF) has established the Regional Voluntary Carbon Market Company to support businesses and industries in the region to achieve ‘net zero’ goals.

PIF will hold an 80 percent stake, while Saudi Tadawul Group Holding Company will own the remaining  20 percent, the sovereign wealth fund said in a statement.

The Riyadh headquartered company will help facilitate the world’s largest-ever carbon credit auction on October 25.

The auction will involve one million tons of carbon credits and will offer high-quality credits, including Corsia-compliant, Verra-registered certificates.

Yazeed A. Al-Humied, deputy governor and head of MENA investments at PIF, said that the company will play an important role in the fund’s wider efforts to drive investment and innovation required to address the impact of climate change and support Saudi Arabia’s efforts to achieve net zero by 2060.

“With an expected one million tons of carbon credits available to trade, we predict that our auction will be the largest carbon credit auction to date,” said Riham ElGizy, director of VCM Initiative. 

PIF, which supports the kingdom’s green agenda, recently completed its $3 billion green bond issuance as part of its efforts to develop 70 percent of the country’s renewable energy capacity.