Jeddah, 23 March 2022 – Saudi Arabian Airlines (SAUDIA) have signed a memorandum of understanding (MoU) to become the first potential partner of the MENA regional Voluntary Carbon Market (VCM).
As part of the agreement, SAUDIA and other key partners will support the development of the VCM through the supply, purchase and trading of carbon credits, with the market expected to be established in 2023.
The VCM is an initiative by Public Investment Fund (PIF) and Tadawul, which was announced in September 2021 by His Royal Highness Crown Prince Mohammad bin Salman Al-Saud, Crown Prince, Deputy Prime Minister, Chairman of the Council of Economic and Development Affairs, Chairman of PIF; stating Saudi Arabia’s leading role in contributing to the reduction of the impact of climate change.
HRH has also announced Saudi Arabia’s aim to reach net zero by 2060 through the Carbon Circular Economy approach, in line with its development plans and enabling its economic diversification. These efforts contribute to developing the country’s green economy, creating quality jobs and providing significant investment opportunities for the private sector, in accordance with Vision 2030.
His Excellency Yasir Al-Rumayyan, Governor of PIF, said, “We would like to thank our partners for their commitment to the Voluntary Carbon Market, the first of its kind in the MENA region.”
“PIF contributes to Saudi Arabia’s efforts through driving the investment and innovation required to address the impact of climate change and achieve net zero carbon emissions by 2060.”
His Excellency Eng. Ibrahim Al-Omar, Director General of the Saudi Arabian Airlines Corporation, said, “Saudi Arabia’s national flag carrier, SAUDIA has a pivotal role in carbon off-setting and contributing to environmental sustainability. The participation in the voluntary carbon market for the Middle East North Africa region is a landmark occasion in the national airline’s history. With great anticipation, we look forward to collaborating on the Voluntary Carbon Market, an innovative future-forward new initiative created by PIF.”
Saudi Arabian Airlines CEO, Capt. Ibrahim Koshy, said, “Such exchange will create and scale development opportunities in the region to increase action on climate change. Kingdom of Saudi Arabia will become a hub for intermediation of quality carbon credits, including investment, trade and advisory.”
“The airline is focusing in particular on carbon offsets, accelerated fleet modernization and the continuous optimization of flight operations to reduce carbon emission.”
The first five partners for the VCM are Aramco, SAUDIA, ACWA Power, Ma’aden, and ENOWA, which is a subsidiary of NEOM.
ENDS
About Saudi Arabian Airlines (SAUDIA):
Saudi Arabian Airlines (SAUDIA) is the national flag carrier of the Kingdom of Saudi Arabia. Established in 1945, the company is one of the Middle East’s largest airlines.
SAUDIA is a member of the International Air Transport Association (IATA) and the Arab Air Carriers Organization (AACO). It has been one of the 19 member airlines of the SkyTeam alliance since 2012.
SAUDIA has received many prestigious industry awards and recognitions. Most recently, it was ranked a Global Five-Star Major Airline by the Airline Passenger Experience Association (APEX) and the carrier was awarded the Diamond status by APEX Health Safety powered by SimpliFlying.
For further information on Saudi Arabian Airlines, please visit www.saudia.com
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