Saudi Arabian Airlines (SAUDIA) have signed a memorandum of understanding (MoU) to become the first potential partner of the MENA regional Voluntary Carbon Market (VCM).
As part of the agreement, SAUDIA and other key partners will support the development of the VCM through the supply, purchase and trading of carbon credits, with the market expected to be established in 2023.
The VCM is an initiative by Public Investment Fund (PIF) and Tadawul, which was announced in September 2021 by Saudi Crown Prince Mohammad bin Salman stating Saudi Arabia’s leading role in contributing to the reduction of the impact of climate change.
His Excellency Eng. Ibrahim Al-Omar, Director General of the Saudi Arabian Airlines Corporation, said, “Saudi Arabia’s national flag carrier, SAUDIA has a pivotal role in carbon off-setting and contributing to environmental sustainability. The participation in the voluntary carbon market for the Middle East North Africa region is a landmark occasion in the national airline’s history. With great anticipation, we look forward to collaborating on the Voluntary Carbon Market, an innovative future-forward new initiative created by PIF.”
“Such exchange will create and scale development opportunities in the region to increase action on climate change. Kingdom of Saudi Arabia will become a hub for the intermediation of quality carbon credits, including investment, trade and advisory.”Saudi Arabian Airlines CEO, Capt. Ibrahim Koshy
Saudi Arabian Airlines CEO, Capt. Ibrahim Koshy, said, "The airline is focusing in particular on carbon offsets, accelerated fleet modernization and the continuous optimization of flight operations to reduce carbon emission.”
Voluntary Carbon Credit
What is a Carbon Credit?
- A carbon credit is a certificate representing one metric ton of carbon dioxide equivalent that is either prevented from being emitted into the atmosphere or removed from the atmosphere as the result of a carbon-reduction project.
What is a Voluntary Carbon Credit Market?
- It is a marketplace where private investors, businesses, non-governmental organizations, voluntarily purchase carbon credits to offset their emissions, thereby helping them meet their carbon footprint / GHG targets.