More than 15 Saudi Arabian companies on Wednesday, June 14, participated in an auction in Nairobi event with the aim of buying up to 2 million tonnes of carbon credits.
The auction, touted as the largest of its kind in the world, was organised by the Regional Voluntary Carbon Market Company (RVCMC), an organisation set up by PIF and the Saudi Tadawul Group.
Public Investment Fund (PIF) noted that the proceeds of the auction will be used to fund projects that reduce carbon emissions into the atmosphere.
It further lauded Kenya’s sustainable development projects noting that it was a contributor to 70 per cent of the credit sold at the action.
A carbon credit auction involves businesses purchasing permits that allow the owner to emit a certain amount of carbon dioxide or other greenhouse gases.
It noted that there was a huge demand for carbon offsets generated through projects such as tree planting or using cleaner cooking fuel, adding that Kenya only contributed to one per cent of carbon emissions.
Some of the projects in Kenya that contribute to the reduction in carbon emissions included the supply of improved clean cookstoves to communities.
Kenya’s push for clean energy and tree planting were highlighted as some of the projects that enabled the companies to buy the carbon credits and some of the projects funded by proceeds of such auctions.
“The certified credits that are sold will fund the projects that avoid emissions by using sustainable technologies or remove carbon from the atmosphere,” RVCMC noted.
Additionally, RVCMC refuted claims of poor transparency in the funding of projects and the supply of carbon credit. It noted that the projects are funded after vetting by two separate and independent teams of experts.
“If there are any red flags, we immediately exclude this from the auction,” noted the organisers.
President William Ruto has been championing the use of clean energy and the reduction of carbon emissions including putting in place policies to ensure the planting of 5 billion trees in the following five years and another 10 billion trees in the following ten years.
