The Regional Voluntary Carbon Market Company (RVCMC) has recently announced a strategic partnership with Xpansiv, a prominent market infrastructure provider in the global energy transition sector. This collaboration aims to establish the technological framework for RVCMC’s upcoming carbon credit exchange in Saudi Arabia, set to launch later this year.
RVCMC and Xpansiv have joined forces to pave the way for sustainable trading practices in the region. Founded in October 2022, RVCMC is a venture initiated by the Public Investment Fund (PIF) and the Saudi Tadawul Group Holding Company. PIF holds an 80% stake in the company, with Tadawul Group holding the remaining 20%.
With a shared vision, RVCMC is rapidly working towards creating a reputable voluntary carbon market with global significance. At the core of its mission is the emphasis on high-quality carbon credits and proactive climate action. RVCMC is leading the charge in developing an ecosystem that encompasses various components crucial for effective climate mitigation.
This ecosystem includes an investment fund dedicated to financing climate projects, a carbon credit trading exchange tailored for the market, and advisory services aimed at guiding organizations through the complexities of decarbonization. The decision to partner with Xpansiv stems from RVCMC’s commitment to providing traders with top-tier infrastructure for seamless and secure transactions.
Xpansiv, known for its operation of CBL, the world’s largest spot carbon credit marketplace, will equip the new exchange with its open-access market infrastructure. This includes a fully automated, same-day settlement platform and a portfolio management system integrated with leading global registries. RVCMC will enforce strict criteria for listing only high-integrity carbon credit projects validated by independent standard setters, bolstering the global energy transition.
To fulfill the objectives outlined in the Paris Agreement and achieve global net zero greenhouse gas emissions targets, emerging markets and developing nations require an annual investment of $2.4 trillion in climate action by 2030. The global voluntary carbon market, projected to reach $3 billion by the end of 2024, plays a crucial role in bridging this funding gap.
Forecasts suggest that the market could grow to $100 billion by 2030, underscoring its significance in advancing climate mitigation efforts. RVCMC’s past voluntary carbon credit auctions have already generated significant demand in the region, with the sale of 1.4 million tonnes in 2022 and 2.2 million tonnes in 2023.
The upcoming launch of the new RVCMC exchange is poised to further boost carbon credit trading in Saudi Arabia and beyond, aligning with the Kingdom’s commitment to combat climate change as outlined in the Saudi Green Initiative and Vision 2030. This initiative aims to direct climate funding to regions where it is most urgently needed, addressing climate concerns sustainably through emission reduction, forestation expansion, and land and sea area protection.
Riham ElGizy, CEO of RVCMC, highlighted the importance of a carbon credit trading exchange in realizing their ambition to become one of the leading VCMs globally by 2030. ElGizy emphasized that the collaboration with Xpansiv will help build the necessary infrastructure for a robust, transparent, and liquid market that maximizes the role of carbon offsets in combating climate change across the Global South.
John Melby, CEO of Xpansiv, echoed this sentiment, expressing the company’s enthusiasm in supporting RVCMC’s mission to develop a marketplace that channels carbon finance at scale, crucial for accelerating the global energy transition. Xpansiv’s commitment to advancing the world’s energy transition through its market infrastructure is evident in its operation of the largest spot exchange for environmental commodities, including carbon credits and renewable energy certificates.
RVCMC and Xpansiv share a common goal of promoting high-quality carbon credits and proactive climate action, aiming to foster a transparent and liquid market that accelerates the global energy transition. As the world progresses towards achieving net zero emissions, initiatives like RVCMC’s exchange play a pivotal role in mobilizing investment and driving impactful climate mitigation efforts.
