RIYADH: Oil giant Aramco, national carrier SAUDIA, ACWA Power, Ma’aden, and ENOWA — a subsidiary of NEOM — are announced as first potential partners for the carbon market initiative that was launched by Saudi Arabia to lower emissions of corporates in the region. The fund, also known as PIF, said late on Tuesday that the five leading Saudi businesses have each signed a separate non-binding memorandum of understanding to become partners of the initiative known as MENA regional Voluntary Carbon Market, or VCM. PIF said further partners on both the demand and supply side will be on boarded in the coming months, ahead of an introductory round of auctions in fourth quarter of 2022. “PIF contributes to Saudi Arabia’s efforts through driving the investment and innovation required to address the impact of climate change and achieve net zero carbon emissions by 2060,” Yasir Al-Rumayyan, Governor of PIF, said in a statement following the signing. Amin Nasser, CEO of Aramco, said, “We are excited to be part of this groundbreaking initiative by PIF to establish a regional carbon market, which aligns with our net-zero ambition.” “Carbon credits complement our wider emissions reduction strategy and represent an important tool in the energy transition, as we continue to play our part in meeting the world’s need for secure, affordable and ever more sustainable energy,” he added. Voluntary Carbon Market will connect the supply of carbon credits with demand from investors, corporates and institutions wanting to reduce their carbon footprint. Under the recently introduced Saudi Green Initiative, the Kingdom aims to reach net zero emissions by 2060 through the carbon circular economy approach, in line with its Vision 2030 and plans for economic diversification. Carbon markets have grown rapidly in recent years across the world, with a compounded annual growth rate of 30 percent to reach a value of more than $1 billion of traded value as of November 2021, and could grow another 15 times by 2030 according to the Taskforce on Scaling Voluntary Carbon Markets. In its recently published Green Finance Framework, and in line with Vision 2030, PIF set out a number of broad initiatives to help it achieve its goal to be a leader in ESG, including the establishment of a VCM.