A successful carbon auction by the Saudis: Saudi Arabia’s Regional Voluntary Carbon Market Company (RVCMC) signed two MoUs with Kenya’s main dry cell battery maker Eveready East Africa and Carbon Vista Nigeria to set up high-quality and impactful carbon projects in the two countries, SPA reported on Thursday. No more details were disclosed on the MoUs which were signed on the sidelines of a carbon credit auction hosted by the RVCMC last week. The auction — described as the largest-ever voluntary carbon credit auction — saw the sale of over 2.2 mn tons of carbon credits amid strong demand.

What we know: The auction saw some 16 Saudi regional and international entities participating, with Aramco, the Saudi Electricity Company (SEC), and Neom subsidiary Enowa purchasing the largest number of carbon credits. It offered high-quality Corsia-eligible and Verra-registered carbon credits, which can allow buyers operating in several industries to play their part in the global transition. The auction saw a clearing price of SAR 23.50 per ton of carbon credits. Last week’s sale by the company — established by Saudi Arabia’s sovereign wealth fund the Public Investment Fund (PIF) and the Saudi Tadawul Group — beat the sale of some 1.4 mn tons of carbon credits during its first auction, which was held in Riyadh last October.

Where are the proceeds going? Funds generated by the sale of RVCMC’s carbon credits will be channeled to a basket of credits including 18 projects that represent a mix of CO2 avoidance and removal, including renewable energy projects and others. Most of the carbon credits auctioned came from countries in the region and sub-saharan Africa, including Egypt, Morocco, Rwanda, Uganda, Kenya, Burundi, and South Africa.

REMEMBER- The voluntary carbon market is picking up pace: The voluntary carbon market quadrupled to some USD 2 bn in 2021, and could be worth in excess of USD 50 bn in 2023, according to McKinsey. The UAE and Egypt are also working to establish carbon exchanges.

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