RVCMC selects Xpansiv to launch carbon credit exchange in Saudi Arabia


The Regional Voluntary Carbon Market Company (RVCMC) today announced it 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 which set the record for the world’s largest-ever voluntary carbon credit auction.1

RVCMC’s choice of Xpansiv will offer buyers and sellers institutional grade 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 guiderails 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 USD 2.4 trillion of investment in climate action per year by 20302. The global voluntary carbon market, which could reach a value of USD 3 billion by the end of 2024, plays an important role in contributing to this funding gap as it is forecast to grow to USD 100 billion by 20303.

RVCMC’s two prior voluntary carbon credit auctions, which sold 1.4 million tonnes in 2022, and 2.2 million tonnes 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.

Riham ElGizy, CEO of RVCMC, said: “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.”

John Melby, CEO of Xpansiv, said of the partnership: “We are honored to work with RVCMC to realize its vision of a new carbon market for the Middle East. We 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.”

1 https://www.prnewswire.com/in/news-releases/rvcmc-successfully-sells-over-2-2-million-tonnes-of-carbon-credits-at-largest-ever-voluntary-carbon-credit-auction-event-in-nairobi-kenya-301851176.html
2 Independent High-Level Expert Group on Climate Finance report, A climate finance framework: decisive action to deliver on the Paris Agreement, November 2023
3 https://www.morganstanley.com/ideas/carbon-offset-market-growth


RVCMC was established by Public Investment Fund (PIF) and Saudi Tadawul Group Holding Company (Saudi Tadawul Group) in October 2022. PIF holds an 80% stake and Tadawul Group holds a 20% stake in the company. RVCMC is creating a credible voluntary carbon market at speed and at scale with global impact. The market prioritizes high quality carbon credits and positive climate action. The company is creating an ecosystem that includes an investment fund for climate mitigation projects, an exchange for the trading of carbon credits and advisory services that help organizations understand how to decarbonize.

RVCMC successfully auctioned 2.2 million tons of voluntary carbon credits in the largest-ever carbon credit sale that was held in Nairobi, Kenya on June 14th, 2023. The auction offered high-quality CORSIA-eligible and Verra-registered carbon credits. The Nairobi event was the second sale of carbon credits held by RVCMC. In October 2022, RVCMC hosted its first auction at the sixth Future Investment Initiative (FII) in Riyadh. This marked what was then the largest-ever carbon credit sale auction with 1.4 million tons of carbon credits successfully auctioned: enough to compensate for the annual emissions of approximately 250,000 gasoline-powered family cars. In October 2023, RVCMC and PIF hosted the world’s first Global South Carbon Market Conference at FII7 in Riyadh.

Follow the company on Linkedin – https://www.linkedin.com/company/voluntarycarbonmarket

About Xpansiv
Xpansiv operates the market infrastructure to rapidly scale the world’s energy transition. The company runs the largest spot exchange for environmental commodities, including carbon credits and renewable energy certificates. It is the premier provider of registry infrastructure for energy, power, and environmental markets. It also operates the largest independent platform for managing and selling solar renewable energy credits in North America.

Xpansiv is a leading provider of transaction and advisory services in global carbon, renewable energy, and energy transition markets through its Carbon Financial Services and Evolution Markets units. It also runs the leading multi-registry, multi-asset environmental portfolio management system and market data service.

Xpansiv’s rules-based markets and infrastructure enable stakeholders to deliver transparent, credible, and auditable environmental claims to address the growing global demand for assurance and accountability on climate action and sustainability performance.

For more information, please visit Xpansiv.com.