Saudi sovereign wealth fund to create decarbonization company

The Saudi Public Investment Fund announced yesterday it will establish a company focusing on decarbonization. 

The sovereign wealth fund owns 80% of the Regional Voluntary Carbon Market Company, while the Saudi Tadawul Group Holding joint stock company owns the other 20%. The company will help businesses reduce carbon emissions, the official Saudi Press Agency reported. 

Why it matters: Saudi Arabia is one the biggest oil producers in the world, as well as one of the Earth’s biggest carbon polluters. Oil is a major driver of economic growth in the kingdom. 

At the same time, Saudi Arabia is seeking to reduce its dependence on oil and has invested in an array of renewable energy and green technology projects this year. 

Saudi entities are particularly interested in green hydrogen. Most recently, Saudi Arabia’s ACWA Power pledged to develop green hydrogen in South Africa. In August, the Saudi construction firm Alfanar signed a deal to build a green hydrogen facility in Egypt. 

Know more: The Saudi Public Investment Fund has been pursuing an active investment strategy this year, recently pouring its money into Egyptian state-owned firms, luxury cars, major US companies and more.