VCM and Enowa Join Forces to Provide 30 Million Tons of Carbon Credits
In a pioneering step towards sustainability initiatives, the Voluntary Carbon Market Company (VCM) and Enowa, the energy and water subsidiary of NEOM, have signed a long-term deal to provide around 30 million tons of carbon credits by 2030. The transaction represents an important milestone in VCM's objective of creating a successful voluntary carbon market in the region.
A Strategic Partnership for Sustainability
The deal is a milestone in Saudi Arabia's drive to be part of global climate ambitions. Enowa, under the deal, will obtain top-quality carbon credits from climate action projects globally, with an emphasis on projects located in the Global South. These projects will be traded on the VCM platform, facilitating the development of a financial model for long-term sustainability. The initial delivery under the agreement took place on December 19, 2024.
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Strengthening Global Climate Action
Riham ElGizy, the CEO of VCM, highlighted how important the partnership is to enable Enowa to achieve its renewable energy targets while offsetting emissions. The partnership also provides climate projects in the Global South with much-needed financial certainty so that they can plan for the future with confidence. Enowa's commitment to NEOM's renewable energy network is the kind of leadership needed to achieve global net-zero aspirations. Jens Madrian, the Acting CEO of Enowa, welcomed the deal as an important milestone toward ensuring the energy requirements of NEOM are met in a sustainable manner.
The deal is a major success for Saudi Arabia's position in the voluntary carbon market and highlights the increasing relevance of combining climate action with infrastructure development.
