RVCMC picks Xpansiv to launch carbon credit exchange in Saudi Arabia

By Arya M Nair, Official Reporter
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VCM selects Xpansiv to launch carbon credit exchange
Rep.Image | Courtesy; VCM Twitter

The Regional Voluntary Carbon Market Company (RVCMC), owned by the Public Investment Fund and Tadawul Group, has selected Xpansiv, the leading market infrastructure provider for the global energy transition, to provide tech infrastructure for RVCMC’s carbon credit exchange, which is set to launch later this year in Saudi Arabia.

The move marks a significant step towards achieving RVCMC’s ambition to scale up global supply and demand to deliver much-needed climate finance to the Global South. Building the exchange follows the success of RVCMC’s voluntary carbon credit auctions held in October 2022 and June 2023, two events that “set the record for the world’s largest-ever voluntary carbon credit auction.”

By selecting Xpansiv, RVCMC will provide buyers and sellers with robust infrastructure, enabling fast and secure transactions. The company already operates CBL, the world’s largest spot carbon credit marketplace, and the new exchange will be built on Xpansiv’s open-access market infrastructure, including a fully automated, same-day settlement platform and a portfolio management system, both of which will be integrated with leading, global registries.

RVCMC will set tight guidelines for the exchange to ensure the listing of high-integrity carbon credit projects only, all backed by independent standard setters, to support the global energy transition. Contracts will be developed to align with market best practices, including a gradual shift towards carbon removals.

To deliver the goals of the Paris Agreement and achieve global net zero greenhouse gas emissions targets, emerging markets and developing countries require $2.4 trillion of investment in climate action per year by 2030. The global voluntary carbon market, which could reach a value of $3 billion by the end of 2024, plays an important role in contributing to this funding gap as it is forecast to grow to $100 billion by 2030.

RVCMC’s two prior voluntary carbon credit auctions, which sold 1.4 million tons in 2022, and 2.2 million tons in 2023, have driven demand in the region. The launch of the new RVCMC exchange will enable the scale-up of carbon credit trading in Saudi Arabia and globally, supporting the Kingdom’s commitment to tackling climate change in line with the Saudi Green Initiative and Vision 2030, by driving climate funding to where it’s needed most, the company said.

Riham ElGizy_RVCMC selects Xpansiv to launch Carbon credit exchange
Riham ElGizy

“The world needs to use every tool at its disposal to tackle the devastating impacts climate change is already having. As our previous two auctions demonstrated, there is growing demand from leading businesses in Saudi Arabia to play their part. Developing a carbon credit trading exchange is the next step in RVCMC’s mission to become one of the largest voluntary carbon markets in the world by 2030. Our work with Xpansiv will help us build the infrastructure the market needs for a thriving, transparent and increasingly liquid market, one that can maximize the role of carbon offsets in tackling climate change across the Global South.”

Xpansiv’s CEO John Melby said that they are honored to work with RVCMC to realize its vision of a new carbon market for the Middle East, and that they “look forward to supporting the company’s mission to develop a marketplace that will channel carbon finance at scale, which is essential to realizing the global energy transition at an accelerated pace.”

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