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Saudi Arabia launches the first carbon insurance trading platform in the Middle East

Saudi Arabia launches the first carbon insurance trading platform in the Middle East. The Crown Prince praises the Kingdom’s role in the region to face the challenges of climate change and reduce emissions Within the framework of the active presence of Saudi Arabia to meet the challenges of climate change and contribute to improving the environment and limiting climate changes and negative effects on the environment, the Saudi Public Investment Fund – one of the largest sovereign wealth funds in the world – announced yesterday a cooperation with the Saudi Tadawul Group to establish the Riyadh voluntary platform for trading and exchange Carbon Insurance and Compensation in the Middle East and North Africa.
The Riyadh platform will be the main voluntary trading platform in the region and the main interface for companies and various sectors that aim to reduce carbon emissions and contribute to it through the purchase or sale of high-quality, verified and approved carbon-equivalent offset credits.
While work will be done to establish the platform with a number of regulatory authorities, including the National Committee for the Clean Development Mechanism, and the competent authorities in this field will be sought locally and globally, in order to identify methodologies, regulatory and technical frameworks and governance models that comply with the highest standards and best practices, to achieve the desired goals of Establish a voluntary trading platform, and to contribute to the achievement of the objectives of the Paris Agreement.
In this regard, Prince Muhammad bin Salman bin Abdulaziz, Crown Prince, Deputy Prime Minister, Chairman of the Council of Economic Affairs and Development and Chairman of the Board of Directors of the Saudi Public Investment Fund, praised this step, noting that these efforts “come as part of the Kingdom’s role in the region to confront the challenges of climate change.” And motivating institutions to reduce their carbon emissions, and as an extension of their efforts in this field to contribute to improving the environment and reducing the negative effects of urban development, which makes them in the ideal position to establish a voluntary trading platform, based on the strength of its financial market and its quality initiatives and projects.
For his part, Yasser Al-Rumayyan, Governor of the Public Investment Fund, explained that the Public Investment Fund is working on a number of quality projects that derive their energy from renewable sources and use sustainable materials, and the Fund is keen to employ its expertise in the financial fields to create a suitable environment for this platform, based on its relationships, partnerships and strength His investment portfolio, in line with international efforts aimed at contributing to improving the impact of investments on the climate and environment.
It is noteworthy that the Public Investment Fund has an active presence in a number of global initiatives aimed at limiting climate change and negative effects on the environment, such as the initiative of the International Working Group for Sovereign Wealth Funds “One Planet”, and it has prominent participation in a number of related conferences and forums.
There is a large percentage of companies seeking to reduce their emissions of greenhouse gases in the Kingdom, in addition to a number of global partners interested in investing in this field.
The Saudi Tadawul Group includes 4 subsidiaries: the Saudi Tadawul (Securities Markets), the Securities Clearing Center Company (Muqassa), the Securities Depository Center Company (Edaa), and the new Wamd Company, which specializes in innovation-based technical services and solutions.