A pioneering step towards a low-carbon economy
The Regional Voluntary Carbon Market (VCM), backed by the Public Investment Fund (PIF), announced the signing of a strategic cooperation agreement with Roshen Group, a leading national real estate developer and one of PIF’s major projects. This collaboration aims to explore and evaluate opportunities to generate high-integrity carbon credits from Roshen’s sustainable real estate projects, marking a significant milestone in the Kingdom’s efforts to achieve its ambitious climate goals.
In the context of Vision 2030 and the Saudi Green Initiative
This partnership is part of the comprehensive national transformation led by Saudi Vision 2030, which places sustainability and environmental protection at the heart of its objectives. It also aligns directly with the Saudi Green Initiative, which aims to achieve net-zero carbon emissions by 2060. The real estate and construction sector is a vital sector that plays a pivotal role in achieving these goals, given its significant consumption of resources and energy. By adopting carbon market mechanisms, sustainable practices can be transformed into tradable financial assets, thus incentivizing further green innovation.
The importance of cooperation and its expected impact
This collaboration represents a significant consultative phase for the Voluntary Carbon Market Company, reinforcing its role as a trusted partner of the Kingdom in developing an effective and transparent regional carbon market. Under the agreement, the company's consultative team will support Roshen Group in developing a comprehensive framework for high-quality carbon credits. The first phase will focus on assessing the carbon emission reduction potential of Roshen's innovative water-saving technologies implemented in its projects.
Domestically, this collaboration is expected to set a precedent in the Saudi real estate sector, encouraging other developers to integrate sustainability into their business models. It also opens the door to alternative and innovative financing sources, known as green finance, which supports the economic viability of environmentally friendly projects. Regionally, it reinforces the Kingdom's position as a leader in climate action and the development of carbon markets in the Middle East.
Official statements and future vision
In this context, Fadi Saadeh, CEO and Chief Technology Officer of the Voluntary Carbon Market, stated: “The real estate sector is central to the Kingdom’s development ambitions, and sustainability must be an integral part of its core.” He added: “This collaboration with Roshen Group marks a significant milestone for our company and clearly demonstrates the ability of carbon market mechanisms to support decarbonization across the entire sector.”.
This partnership allows Roshen Group to actively participate in the Kingdom’s growing voluntary carbon market and leverage the Voluntary Carbon Market Company’s expertise in project structuring and credit issuance. This reflects the company’s ongoing momentum in expanding the Kingdom’s voluntary carbon market ecosystem, enabling various sectors to participate in carbon finance and supporting the Kingdom’s broader ambitions towards achieving net-zero emissions.
