VCM Expands Global Reach And Regional Collaboration In Asia Through New Partnerships

The Regional Voluntary Carbon Market Company (VCM), formed by the Public Investment Fund and Saudi Tadawul Group, has signed a memorandum of understanding with Marubeni Corporation. This collaboration marks Marubeni as the first Japanese firm to join VCM in carbon market initiatives. The agreement signifies a major step in expanding VCM's influence across Asia.

During the Future Investment Initiative Priority Summit in Tokyo, these partnerships were formalised. The event was attended by Saudi Ambassador to Japan Dr. Ghazi Binzagr and VCM Chairperson Rania Nashar, highlighting the strategic importance of these agreements. This collaboration aims to enhance sustainability efforts and green investments.

VCM has also partnered with Climate Bridge International from Singapore as an advisory partner. Together, they aim to accelerate carbon project development in Saudi Arabia and globally. Climate Bridge International specialises in designing climate-aligned strategies and partnerships, focusing on sustainability innovation and policy insights.

The partnership with Marubeni aligns with Saudi Arabia's Vision 2030, combining VCM's expertise in voluntary carbon markets with Marubeni's experience in carbon-credit trading. Naoki Tamaki, Chairman of Marubeni Saudi Investment, stated that this collaboration supports Saudi Arabia's transition to a low-carbon economy.

VCM has launched Saudi Arabia’s first voluntary carbon credit exchange platform. This platform is designed to provide a transparent and scalable marketplace for carbon credits. It offers institutional-grade infrastructure for secure transactions and facilitates price discovery for projects from the MENA region.

The platform integrates with global registries and supports Islamic finance through specialised infrastructure for carbon credit trade. It includes features like auction markets and request-for-quote functionalities, with more developments planned for the future.

Market Growth Potential

The voluntary carbon offset market is projected to grow significantly, from $2 billion in 2020 to approximately $250 billion by 2050. VCM aims to support this growth by offering a robust exchange that enables fast and secure transactions between buyers and sellers.

Acting CEO of VCM Fadi Saadeh expressed enthusiasm about the MoU with Marubeni, stating it enhances VCM’s status as a global marketplace. He emphasised the trust placed in Saudi Arabia’s efforts to build a world-class carbon market that delivers measurable impact across regions.

Alvin Lim, CEO of Climate Bridge International, highlighted their role in shaping new carbon projects alongside VCM. He noted that their combined strengths will lead to technically robust projects aligned with high integrity standards.

The collaborations reflect growing international confidence in Saudi Arabia’s ability to establish an institutional-grade carbon market. They also indicate increased interest among Asian enterprises in engaging with Saudi Arabia’s economy and sustainability initiatives.

With inputs from SPA