Saudi Arabia has signed a landmark agreement to supply over 30 million tons of high-integrity carbon credits by 2030, strengthening its commitment to achieving net-zero emissions and positioning the Kingdom as a key player in the global voluntary carbon market.

The long-term deal was signed between ENOWA, the energy and water subsidiary of NEOM, and the Voluntary Carbon Market Company (VCM), a subsidiary of the Public Investment Fund (PIF).

According to the Saudi Press Agency, the credits will be sourced from certified climate action projects, primarily in the Global South. The first batch is set for delivery in December through Saudi Arabia’s voluntary carbon market platform.

The agreement represents a significant step toward developing a scalable carbon trading infrastructure and supports the Kingdom’s broader goal of reaching net-zero emissions by 2060.

It also allows ENOWA to offset its current emissions as it continues to develop the renewable and clean energy systems that will power NEOM’s future economy.

Riham El-Gizy, CEO of the Voluntary Carbon Market Company, noted that the deal also supports climate projects in the Global South by offering financing guarantees, enabling developers to plan more confidently.

“To reach global net-zero emissions, climate-friendly projects that reduce or remove carbon from the atmosphere not only need funding but enhanced credibility,” she said.

Established in 2022 by the Public Investment Fund (PIF) and the Saudi Tadawul Group, the Voluntary Carbon Market Company (VCM) is 80% owned by the Kingdom’s sovereign wealth fund. It operates a comprehensive ecosystem with a trading platform, investment fund, and advisory services to support emissions reduction and the development of carbon credits.

ENOWA has already participated in carbon credit auctions in both Saudi Arabia and Kenya, securing high-integrity offsets aligned with NEOM’s sustainability goals.

Launched in November 2024, the VCM platform is integrated with international registries and offers tools for price discovery, project data access, and secure, Shariah-compliant transactions. A dedicated spot trading market is expected to go live in 2025.

With the global voluntary carbon market projected to grow from $2 billion in 2020 to $250 billion by 2050, Saudi Arabia is positioning itself as a major player in shaping this rapidly evolving financial and environmental market.