Saudi: VCM and Enowa sign deal to deliver over 30mln tons of carbon credits
RIYADH — The Voluntary Carbon Market (VCM), a carbon credit company established by the Public Investment Fund (PIF) and Saudi Tadawul Group, and Enowa, the energy and water subsidiary of NEOM, have announced a long-term agreement to facilitate the delivery of approximately 30 million tons of carbon credits within this decade.
This agreement supports Saudi Arabia's net-zero ambitions and will help ENOWA offset its emissions as it develops renewable energy infrastructure for NEOM. The scale and duration of the agreement mark a significant milestone in VCM's ambition to create a thriving voluntary carbon market in the region.
According to a recent VCM press release, the deal will involve delivering high-integrity carbon credits to Enowa from climate action projects worldwide, with the majority of projects based in the Global South and transacted on the VCM platform. The first delivery under this arrangement took place on December 19, 2024.
CEO of VCM Riham ElGizy said: "The long-term agreement between VCM and Enowa to facilitate the delivery of over 30 million tons of carbon credits by 2030 marks a significant moment in Saudi Arabia's journey to drive growth in global voluntary carbon markets. It helps Enowa compensate for today's emissions while creating sustainable infrastructure for the long term."
She added: "Equally, the deal aims to give climate action projects in the Global South and beyond funding certainty so that they can plan for the next few years with confidence. To achieve global net zero, climate projects that reduce or remove carbon from our atmosphere need not just finance but certainty too. Enowa's leadership has been representative of what the VCM exchange platform in Saudi Arabia can help unlock at a time when finance is at the forefront of the global climate agenda."
Executive Director Energy at Enowa Jens Madrian said: "Enowa is striving to ensure NEOM's energy needs are met sustainably. Over the past two years, we have purchased high-integrity carbon credits from VCM's auctions. This year, we are delighted to be the first company in Saudi Arabia to agree to a large-scale, long-term agreement with VCM."
The statement also highlighted that VCM launched Saudi Arabia's first voluntary carbon credit exchange platform on November 12, 2024. The platform is designed to meet market requirements for a transparent, scalable, and increasingly liquid marketplace by offering institutional-grade infrastructure to enable secure transactions and price and data discovery for carbon credit projects, which are key to growing the market globally and providing a price signal for projects from MENA regions.
The platform features open market connectivity and is integrated with leading global registries. It also provides an opportunity to develop specialized infrastructure for trading carbon credits to enable Islamic Finance. In addition to the auction market, RFQ and block trade functionality, followed by spot market and other functions are launching in 2025.
"The voluntary carbon offset market is expected to grow from $2 billion in 2020 to around $250 billion by 2050. To promote the growth of the voluntary carbon market in Saudi Arabia and the region, VCM's exchange is being designed to offer buyers and sellers institutional-grade infrastructure, enabling fast and secure transactions," the release stated. It also noted that Enowa has been a leading participant in VCM's previous auctions, which took place in Saudi Arabia in 2022 and in Kenya in 2023.
VCM was established by PIF and the Saudi Tadawul Group in October 2022. The fund owns 80 percent of the company, while the group owns a 20 percent stake. Through its mandate to realize NEOM, Enowa serves as a blueprint for sustainable urban development worldwide, enhancing the planet's future while promoting economic diversification and improving quality of life.
© Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
2 hours ago
- Zawya
SICO's Employee Saving Scheme delivers up to 12.6% annualized returns
SICO BSC (c), a leading regional asset manager, broker, market maker, and investment bank with physical presence in Bahrain, Saudi Arabia, and the UAE, marked today the second year since the initiation of its Employee Saving Scheme (ESS), which launched in June 2023. Since its launch, the scheme has delivered consistently strong returns across all risk profiles, validating SICO's disciplined investment strategy and global diversification approach. As of May 28, 2025, the four ESS portfolios (Cash, Conservative, Moderate, and Growth) have each delivered solid cumulative and annualized returns while maintaining low volatility. The Cash portfolio has returned 10.72% since inception, yielding an annual return of 5.29%. The Conservative portfolio followed with a cumulative return of 13.52% or 6.62% annualized. The Moderate portfolio achieved a 20.06% cumulative return, or 9.68% annualized, while the Growth portfolio led with a cumulative return of 26.53%, equivalent to an impressive 12.63% annualized. Despite a volatile market environment, all portfolios maintained a standard deviation below 1%, underscoring the effectiveness of SICO's risk-managed asset allocation and the benefits of international diversification. Najla Al-Shirawi, Group CEO of SICO, said, 'This initative has enabled SICO's employees to save more effectively and achieve stable returns in the long term, reflecting our commitment to enhancing income sustainability for our employees. By combining strategic asset allocation with global exposure and careful risk management, the ESS has delivered impressive, stable results. We're proud of what we've achieved and excited to scale this solution through a dedicated fund for external investors in the first quarter of 2026.' The upcoming fund will be structured as a Bahrain-domiciled protected cell company. Each portfolio—Cash, Conservative, Moderate, and Growth—will operate as a separate, ring-fenced investment cell within the fund, ensuring clear asset segregation and investor protection while maintaining the same successful strategy used in the ESS. SICO's ESS allows staff to contribute a portion of their monthly base salary, with the firm matching the contribution up to a capped amount, subject to a vesting period. Participants select from four portfolios aligned with their risk appetite. In line with global best practices, the portfolios are primarily invested in low-cost, liquid, USD-denominated, tax-efficient passive index funds, ensuring broad diversification, cost efficiency, and consistent global market exposure. The scheme is managed by SICO's Global Markets team and was developed in collaboration with Aon, a global leader in retirement and benefits consulting. With a proven track record of performance and stability, SICO's ESS stands out as a model for long-term saving and will soon be made available to a broader investor base. About SICO SICO is a leading regional asset manager, broker, and investment bank with USD 7.9 bn in assets under management (AUM). Today, SICO operates under a wholesale banking licence from the Central Bank of Bahrain and also oversees two wholly owned subsidiaries: an Abu Dhabi-based brokerage firm, SICO Invest, and a full-fledged capital markets services firm, SICO Capital, based in Saudi Arabia. Headquartered in the Kingdom of Bahrain with a growing regional and international presence, SICO has a well-established track record as a trusted regional bank offering a comprehensive suite of financial solutions, including asset management, brokerage, investment banking, and market making, backed by a robust and experienced research team that provides regional insight and analysis of more than 90 percent of the region's major equities. Since inception in 1995, SICO has consistently outperformed the market and developed a solid base of institutional clients. Going forward, the bank's continued growth will be guided by its commitments to strong corporate governance and developing trusting relationships with its clients. The bank will also continue to invest in its information technology capabilities and the human capital of its 150 exceptional employees. Media Contact: Ms. Nadeen Oweis Head of Corporate Communications, SICO Email: noweis@
Zawya
2 hours ago
- Zawya
Saudi feed company Naf seeks $8.1mln from IPO
Saudi Arabia's Naf Company for Feed for Industry (Naf), an animal fodder producer, is looking to raise SAR 30.4 million ($8.1 million) from its initial public offering (IPO) on the Saudi Stock Exchange (Tadawul) Parallel Market, Nomu. The company, whose core business involves the manufacturing and sale of various feed products for livestock and poultry, has set its IPO price at SAR 76 per share. The offering comprises 400,000 ordinary shares, representing a 20% stake. All the 400,000 offer shares will be allocated to qualified investors. Minimum subscription is set at 10 shares and maximum at 90,000 shares. The offering will run for five days, from June 22, 2025 to June 26, 2025. Naf has appointed TeamOne Company as the financial advisor for the offering. (Writing by Cleofe Maceda; editing by Seban Scaria)
Zawya
2 hours ago
- Zawya
EFG Hermes KSA announces expansion of product offerings
Riyadh: EFG Hermes, an EFG Holding company, and the leading investment bank in the Middle East and North Africa (MENA) region is expanding its EFG Hermes KSA product offerings to include Securities Borrowing and Lending (SBL) services. The services, set to launch in 3Q25, will provide institutional investors, asset managers, and family offices with enhanced portfolio efficiency, optimized trading strategies, and new revenue streams. The introduction of SBL services is a significant milestone for EFG Hermes KSA as it aligns its product suite with dynamic client needs and global market trends. EFG Hermes KSA aims to fortify market liquidity, support sophisticated trading strategies, and attract greater institutional participation in the Saudi financial market by facilitating securities lending and borrowing. Saud Altassan, CEO of EFG Hermes KSA, said, ' Adding SBL to our product offerings aligns with our commitment to providing investors with more flexibility and access to advanced trading strategies. As the Kingdom's capital market continues to evolve, we aim to support liquidity, enhance market efficiency, and create new opportunities for institutional investors. Our focus remains on delivering innovative solutions that contribute to a more sophisticated and resilient financial ecosystem.' Ahmed Waly, Global Head of Brokerage at EFG Hermes, commented, 'The newly introduced SBL services enhance market efficiency and investment flexibility for our clients. This service enables investors to lend and borrow securities, optimize trading strategies, and generate passive income. By facilitating regulated short-selling and increasing market liquidity, SBL supports more dynamic and sophisticated investment approaches. Aligning with global financial standards, this addition strengthens the firm's position in the market and provides clients with new opportunities for growth.' The SBL service enables hedge funds and institutional investors to effectively implement arbitrage and risk-hedging strategies. Institutional investors, pension funds, and asset managers can generate passive income by lending idle securities without liquidating their positions. The robust SBL framework will further bolster Saudi Arabia's positioning in global financial markets, making it more appealing to international hedge funds and prime brokers. About EFG Holding: EFG Holding (EGX: – LSE: EFGD) is a financial institution that boasts a remarkable 40-year legacy of success in seven countries spanning two continents. Operating within three distinct verticals — the Investment Bank (EFG Hermes), Non-Bank Financial Institutions (NBFI) (EFG Finance), and Commercial Bank (Bank NXT) — the company provides a comprehensive range of groundbreaking financial products and services tailored to meet the needs of a diverse clientele, including individual clients and businesses of all sizes. EFG Hermes, the leading investment bank in the Middle East and North Africa (MENA), offers extensive financial services, encompassing advisory, asset management, securities brokerage, research, and private equity. In its domestic market, EFG Holding serves as a universal bank, with EFG Finance emerging as the fastest-growing NBFI platform, comprising Tanmeyah, a provider of innovative and integrated financial solutions for small business owners and entrepreneurs, EFG Corp-Solutions, which provides leasing and factoring services, Valu, a universal financial technology powerhouse, Bedaya for mortgage finance, Kaf for insurance, and EFG Finance SMEs, which provides financial services for small and medium enterprises. Furthermore, the company delivers commercial banking solutions through Bank NXT, an integrated retail and corporate banking product provider in Egypt. Proudly present in: Egypt | United Arab Emirates | Saudi Arabia | Kuwait | Bahrain | Kenya | Nigeria Learn more about us at For further information, please contact: May El Gammal Group Chief Marketing & Communications Officer of EFG Holding melgammal@ Omar Salama Associate Director of Communications of EFG Holding osalama@ The EFG Holding Public Relations Team PublicRelations@ Note on Forward-Looking Statements In this press release, EFG Holding may make forward-looking statements, including, for example, statements about management's expectations, strategic objectives, growth opportunities, and business prospects. These forward-looking statements are not historical facts but instead represent only EFG Holding's belief regarding future events, many of which, by their nature, are inherently uncertain and are beyond management's control and include, among others, financial market volatility; actions and initiatives taken by current and potential competitors; general economic conditions and the effect of current, pending, and future legislation, regulations and regulatory actions. Accordingly, the readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made.
