RVCMC and Xpansiv Forge Partnership to Power Saudi Arabia’s Carbon Credit Exchange

RIYADH, April 26, 2024 – In an exciting announcement, the Regional Voluntary Carbon Market Company (RVCMC) has revealed its partnership with Xpansiv, a leading player in global energy transition infrastructure. This collaboration aims to lay the technological groundwork for RVCMC’s upcoming carbon credit exchange in Saudi Arabia, slated for launch later this year.

Established in October 2022 through a joint effort by the Public Investment Fund (PIF) and the Saudi Tadawul Group Holding Company, RVCMC boasts an 80% stake held by PIF, with the remaining 20% owned by Tadawul Group. Since its inception, RVCMC has been on a mission to swiftly and ambitiously construct a reputable voluntary carbon market with international significance, prioritizing top-tier carbon credits and proactive climate action.

RVCMC is leading the charge in developing an ecosystem that encompasses various financial instruments and services crucial for effective climate mitigation. This ecosystem includes a range of offerings such as financial vehicles and services geared towards facilitating climate-friendly transactions.

The decision to team up with Xpansiv underscores RVCMC’s commitment to providing traders with top-notch infrastructure for seamless and secure transactions. Xpansiv, renowned for operating the world’s largest spot carbon credit marketplace (CBL), will provide the new exchange with its open-access market infrastructure. This infrastructure includes a fully automated, same-day settlement platform and a portfolio management system seamlessly integrated with leading global registries.

RVCMC has set rigorous criteria for the exchange, ensuring that only high-integrity carbon credit projects validated by independent standard setters make the cut. Contracts will be meticulously crafted to align with industry best practices, with a focus on transitioning towards carbon removal initiatives gradually.

To meet the ambitious targets outlined in the Paris Agreement and achieve global net zero greenhouse gas emissions, emerging markets and developing nations require substantial annual investments in climate action. The global voluntary carbon market, projected to reach $3 billion by the end of 2024 and potentially grow to $100 billion by 2030, plays a crucial role in bridging this funding gap.

Past voluntary carbon credit auctions by RVCMC have already generated significant demand in the region. With the upcoming launch of the new exchange, carbon credit trading in Saudi Arabia and beyond is set to soar, aligning with the Kingdom’s commitment to combat climate change as outlined in the Saudi Green Initiative and Vision 2030.

Riham ElGizy, CEO of RVCMC, emphasized the pivotal role of a carbon credit trading exchange in achieving their goal of becoming one of the largest VCMs worldwide by 2030. Similarly, John Melby, CEO of Xpansiv, expressed eagerness to support RVCMC’s mission in developing a marketplace that channels carbon finance at scale, crucial for accelerating the global energy transition.

With both RVCMC and Xpansiv sharing a vision of promoting high-quality carbon credits and proactive climate action, their partnership aims to foster a transparent, liquid market that propels the global energy transition forward. As the world strives towards achieving net zero emissions, initiatives like RVCMC’s exchange serve as essential drivers of investment and impactful climate mitigation efforts.