RIYADH: Voluntary carbon markets, albeit premature, are evolving rapidly even as the world looks to a more sustainable future, according to a top Saudi Arabian oil company official.
In an interview with Arab News, Saudi Aramco’s Vice President of Energy and Economic Insights, Musaab Mulla, said that the recent voluntary sale of carbon credits held in Kenya on June 14 sold 2.2 million tons of carbon offsets.
In October 2022, during the Riyadh Future Investment Initiative, 1.4 million tons of carbon offsets were auctioned, and Saudi Aramco was the lead buyer in both auctions.
We are interested in purchasing high-quality credits, as demonstrated by our participation in two auctions held by the Regional Voluntary Carbon Market Corporation. We also control for potential key demand streams such as carbon demand. Neutral fuels. All VCMs are currently at an early stage and are evolving rapidly,” Mulla said.
Carbon credits allow companies to emit a certain amount of carbon dioxide or other harmful gases – 1 ton of emissions per credit. They are known to be generated by projects such as tree planting or clean cooking fuel.
Certified credits finance projects that reduce emissions using sustainable technologies, or completely remove carbon from the atmosphere.
During the discussion, Mula explained that carbon credits are important as our world is on the journey of energy transition.
“Carbon offsets are an additional role that can help us build our way to net zero and can be fulfilled by carbon credits, which are supported by carbon credits, which are tools that help offset GHG (greenhouse gas) emissions by reducing CO2 emissions. Complementing internally generated offsets that we invest elsewhere and invest in.” Be the mangroves,” Mula added.
Saudi Aramco has set a target of net zero by 2050, and these recent efforts, including participation in voluntary carbon markets, can accelerate this journey.
We are actively monitoring market developments regarding what defines high quality credit. “We are using the latest data to create high-quality margins for the credits we intend to purchase,” he said.
Mula added that the company It plans to reduce its carbon footprint by 15 percent to 8.7 kg of carbon by 2035, even if the figure is 10.3 kg in 2022.
Saudi Aramco aims to reduce emissions by 2035 through investments in renewables, carbon capture and storage and energy efficiency improvements, reducing methane and flaring and offsetting emissions.
“Our innovative low carbon practices and technologies make us one of the lowest carbon emitters in our industry,” he said. compensations.
In June, RVCMC CEO Riham Elgizi said after the auction in Kenya that such initiatives could play a critical role in delivering climate action and providing much-needed funding to improve livelihoods.
“Our goal is to be one of the largest voluntary carbon markets in the world by 2030, offsetting hundreds of millions of tons of carbon emissions each year and contributing to global net-zero goals,” Elgizi said.
He added, “Our achievements so far demonstrate our commitment to long-term success in the short term and our ability to achieve our ambitions.”
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