Obtain the data you need to make the most informed decisions by accessing our extensive portfolio of information, analytics, and expertise. Sign in to the product or service center of your choice.
Saudi Arabia to launch regional carbon trading platform
03 September 2021IHS Markit Energy Expert
Saudi Arabia will set up a platform for the trading of carbon
offsets and credits generated in the Middle East and North Africa
as part of the country's efforts to fight climate change, the
official Saudi Press Agency (SPA) reported 3 September.
SPA said the Riyadh Voluntary Exchange Platform will be a joint
venture between the Public Investment Fund, the country's sovereign
wealth fund, and the Saudi Tadawul Group, which owns the Saudi
Exchange.
"This initiative will come to be the primary destination and the
main platform for companies and institutions that target reducing
their emissions, or contributing toward that, through the trading
of verified, approved and high-quality carbon equivalent credits
certificates," SPA said.
No other details were announced.
Vision 2030
In recent years, Saudi Arabia has unveiled a series of
initiatives to mitigate the effects of climate change.
Crown Prince Mohammed bin Salman reaffirmed in March that the
kingdom will generate 50% of its energy from renewables by 2030.
Saudi Arabia first announced its renewable target in 2016 as part
of the Vision 2030 initiative.
At the time, Saudi Arabia generated 0.1% of its total
electricity generating capacity of 330.5 terawatt-hours (TWh) from
solar, while 59.6% came from natural gas, and 40.3% from oil,
according to a 2017 US Energy Information Administration report.
In a 29 October 2020 report, IHS Markit said the country's power
generation increased to 365.16 TWh in 2019, of which 0.02% came
from renewables, mainly solar.
The country's National Renewable Energy
Program in January 2019 announced plans to install 27.3 GW of
mostly solar and to a lesser extent wind by 2023 and 58.7 GW by
2050.
Saudi Arabia is ranked 15th globally for its GHG emissions.
State initiatives
The kingdom is not the only nation to launch or look into
launching a carbon trading market as part of goals to combat
climate change this summer.
Japan's Ministry of Economy, Trade
and Industry is planning to test the feasibility of a
nationwide carbon credit market from 2022 as part of efforts to
achieve carbon neutrality by 2050, according to an interim report
from a ministerial study group published 5 August.
Chinese government officials announced that 16 July marked
the debut of the country's long-awaited national carbon emissions
trading scheme (ETS) for the power sector, and that more than 4.1
million mt of carbon allowances changed hands. The ETS is being
managed by the Shanghai Environment and Energy Exchange.
Given China's economic size and status as the world's largest
emitter of carbon, the Chinese ETS is expected to quickly expand to
become the world's largest carbon market, surpassing the EU ETS in terms of carbon emissions covered.
