Environmental, Social & Governance

Saudi Arabia Launches Groundbreaking Greenhouse Gas Crediting and Offsetting Mechanism

Step reflects the Kingdom’s leading role in the region in addressing climate challenges

SME News Service

The Clean Development Mechanism Designated National Authority (CDMDNA) announced today the operation of Saudi Arabia's domestic market mechanism, Greenhouse Gas Crediting and Offsetting Mechanism (GCOM), at MENA Climate Week 2023, currently held in Riyadh.

This step reflects the Kingdom’s leading role in the region in addressing climate challenges and enabling institutions to tackle their emissions.

It’s also part of the Kingdom’s efforts to reduce the impact of climate change, under the directions of HRH Prince Mohammed bin Salman, Crown Prince and Prime Minister, realizing the environmental sustainability objectives of Saudi Vision 2030.

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The announcement today on GCOM operation is an implementation of the domestic market mechanism announced by HRH Prince Abdulaziz bin Salman, Minister of Energy, in November 2022 at the Saudi Green Initiative held during COP27 in Sharm el-Sheikh, Egypt, which reflects the Kingdom’s efforts in addressing climate change.

GCOM will be accessible to all entities within the Kingdom, offering an incentive for developing activities in emissions reduction and removal to reach the Kingdom’s ambitious Net-Zero target by 2060.

Abdullah AlSarhan, Secretary General of the Designated National General, said: “We are proud to advance the Kingdom’s climate ambitions through the launch of the Greenhouse Gas Crediting and Offsetting Mechanism.

"GCOM will enable entities across the Kingdom to meet their goals to reduce and remove emissions, ensuring collective action in our journey towards a sustainable and low-emission future.”

GCOM's approach is both comprehensive and inclusive, allowing entities within the Kingdom to benefit from its domestic market mechanism for emissions management.

In alignment with the United Nations Framework Convention for Climate Change (UNFCCC), GCOM will support achieving the Saudi Nationally Determined Contributions (NDCs), unlocking a myriad of financial opportunities among national entities striving to meet their climate objectives.

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