Saudi Arabia will launch, early next year, a mechanism allowing companies to offset their emissions by buying credits from projects that voluntarily cut or remove greenhouse gas emissions. The Kingdom announced the Greenhouse Gas Crediting and Offsetting Mechanism (GCOM) on Monday at MENA Climate Week 2023, currently taking place in Riyadh. “This step reflects the Kingdom’s leading role in the region in addressing climate challenges and enabling institutions to tackle their emissions. It’s also part of the Kingdom’s efforts to reduce the impact of climate change,” according to the Saudi Ministry of Energy’s website. The project was first announced by Saudi Energy Minister Prince Abdulaziz bin Salman at the Saudi Green Initiative held during COP27 in Sharm El-Sheikh, Egypt, in November 2022. The carbon credit market system is enabled through Article 6 of the Paris Climate Agreement and is on a voluntary basis. Under a carbon credit market scheme, companies are allocated a specific quantity of carbon credits, indicating the maximum emissions they can generate. If a company exceeds its allotted credits, it is required to buy extra credits from other businesses that have emitted less than its allocated amount….
Saudi Arabia Unveils Greenhouse Gases Credits Scheme Announced at COP27
October 11, 2023
