The Voluntary Carbon Market (VCM), a carbon credit company established by Saudi Arabia’s Public Investment Fund (PIF) and the Saudi Tadawul Group, has signed a long-term agreement with Enowa, the energy and water subsidiary of NEOM, to deliver approximately 30 million tons of carbon credits by 2030.
This deal supports Saudi Arabia’s net-zero ambitions and helps Enowa offset its emissions while developing renewable energy infrastructure for NEOM.
The carbon credits will come from high-integrity climate action projects worldwide, with most projects based in the Global South, and will be transacted on VCM’s newly launched voluntary carbon credit exchange platform. The first delivery under this arrangement occurred on December 19, 2024.
VCM’s platform, launched in November 2024, offers institutional-grade infrastructure for transparent, scalable, and secure carbon credit transactions. It integrates with leading global registries and includes features to support Islamic Finance. Additional trading functionalities such as spot markets and block trades are planned for 2025.
Enowa has been an active participant in VCM auctions since 2022 and is the first Saudi company to enter into a large-scale, long-term agreement with VCM. The partnership reflects Enowa’s commitment to sustainable energy for NEOM and VCM’s ambition to grow the voluntary carbon market regionally and globally.
VCM is majority-owned by PIF (80%) with the Saudi Tadawul Group holding 20%, aiming to create a credible and impactful voluntary carbon market that prioritizes high-quality carbon credits and climate action projects.
This agreement is a significant milestone in Saudi Arabia’s efforts to build a robust carbon trading infrastructure and contribute to the global net-zero emissions goal by 2060.