The Voluntary Carbon Market Company (VCM), a Saudi carbon credit platform backed by the Public Investment Fund (PIF) and Saudi Tadawul Group, has signed a long-term agreement with Enowa, the energy and water subsidiary of NEOM, to deliver more than 30 million tonnes of carbon credits by 2030.
The agreement is one of the largest voluntary carbon credit transactions in the region to date, positioning Saudi Arabia as a growing player in global climate finance and carbon offset markets. The first delivery under the arrangement occurred on December 19, 2024.
High-integrity carbon credits will be sourced from climate action projects, primarily located in the Global South, and transacted through VCM’s recently launched exchange platform. The credits are intended to help Enowa offset emissions as it develops a renewable energy system to power NEOM, the $500 billion smart city under construction in northwest Saudi Arabia.
Riham ElGizy, CEO of VCM, said the agreement is a “significant moment” for both Saudi Arabia and the broader voluntary carbon market. “It helps Enowa compensate for today’s emissions while laying the groundwork for sustainable infrastructure,” she said, adding that the deal also provides “funding certainty” for carbon reduction and removal projects globally.
Jens Madrian, Acting CEO of Enowa, called the agreement a milestone. “We are proud to be the first company in Saudi Arabia to enter a long-term, large-scale carbon credit agreement. This demonstrates our commitment to meeting NEOM’s energy needs sustainably.”
VCM launched the Kingdom’s first voluntary carbon credit exchange on November 12, 2024, aiming to bring institutional-grade transparency and liquidity to a market projected to grow from $2 billion in 2020 to $250 billion by 2050. The platform integrates with leading global registries and supports various transaction formats, including auctions and block trades, with additional functionalities expected in 2025.
Enowa has participated in VCM auctions in Saudi Arabia and Kenya in recent years, underscoring its role in positioning NEOM as a blueprint for sustainable urban development.
