Saudi Arabia is set to introduce a groundbreaking Greenhouse Gas Crediting and Offsetting Mechanism (GCOM) early next year, marking a significant step towards environmental responsibility and climate action in the Kingdom. The initiative unveiled at the United Nations' MENA Climate Week in Riyadh, aims to encourage emission reduction and removal activities on a large scale while supporting national climate strategies.
GCOM, designed in alignment with Article 6 of the Paris Climate Agreement, offers businesses the opportunity to offset their emissions by purchasing credits from projects actively involved in curbing or eliminating greenhouse gas emissions. This voluntary, project-based program covers a wide range of metrics related to both greenhouse gases and non-greenhouse gases across all sectors. Importantly, the scheme is open to participation from the public and private sectors, as well as subsidiaries of foreign companies.
The official GCOM website states that its purpose is;
"to incentivize the deployment of emission reduction and removal activities at scale to support and enable climate-related national strategies, policies, and programs."
The program's emphasis on scalability and its inclusion of diverse sectors underlines Saudi Arabia's commitment to addressing climate change comprehensively.
Approximately one year ago, Saudi Arabia's sovereign wealth fund, the Public Investment Fund, joined forces with the Tadawul Group, the operator of the Riyadh-based Saudi Exchange, to establish the Regional Voluntary Carbon Market Company (RVCMC). In a promising precursor to the forthcoming GCOM launch, 16 Saudi companies, including industry giant Aramco and the Saudi Electricity Company, demonstrated their dedication to sustainability.
In June, these firms collectively acquired over 2.2 mn tonnes of carbon credits through an RVCMC-organized auction. These credits were certified and sourced from projects utilizing sustainable technologies or carbon removal techniques, contributing to Saudi Arabia's efforts to reduce its carbon footprint.
The introduction of the Greenhouse Gas Crediting and Offsetting Mechanism signals Saudi Arabia's commitment to sustainability and environmental stewardship. By creating a platform for businesses to offset their emissions through meaningful projects, the Kingdom aims to play a pivotal role in combating climate change and supporting global efforts to achieve a sustainable future.
As the world grapples with the urgent challenges of climate change, initiatives like GCOM serve as a beacon of hope, showcasing how nations can take proactive steps to reduce their carbon emissions and mitigate the impacts of global warming. Saudi Arabia's foray into greenhouse gas credits highlights its growing role in international climate action and its determination to make a positive environmental impact.
Follow Daryo's official Instagram and Twitter pages to keep current on world news.
Comments (0)