Companies from Saudi Arabia have bought over 2.2 million tonnes of carbon credits during the second regional voluntary carbon market auction in Nairobi.
The auction comes as governments across the world pile pressure on the private sector to lower their greenhouse gas emissions in the fight against climate change.
This has created a rush among the world’s largest companies who are turning to a financial product to offset their carbon footprints by buying carbon credits.
A carbon credit sells at Sh870 and they sold more than 2.2 million, which translates to more than Sh1.9 billion.
The auction held in Nairobi last week turned out to be the world’s largest-ever voluntary carbon credit auction event surpassing a recent auction in Riyadh, Saudi Arabia, where 1.4 million tonnes of carbon credits were sold.
The auction brought together buyers and sellers of carbon credits.
Riham ElGizy, Chief Executive Officer of Regional Voluntary Carbon Market Company (RVCMC), said there was a need to use every tool available to tackle climate change and reverse the impacts.
“This auction demonstrates the role voluntary carbon markets can play in driving funding where it is most needed, to deliver climate action and improve livelihoods across the Global South.”
“Today we have completed the biggest-ever auction of high-quality voluntary carbon credits, selling over 2.2 million tonnes. This follows on from the 1.4 million tonnes auctioned in October last year,” Riham said during the auction.
Carbon credit markets form part of a wider approach towards de-carbonisation and transition where individuals or companies looking to offset their own greenhouse gas emissions can put finances into projects that directly capture the carbon or those that reduce or avoid carbon emissions.
Such initiatives often include reforestation projects, the development of renewable energy and green technology, regenerative wetland management programmes, and climate-smart agriculture programmes, among others.
About 16 Saudi and other international companies participated in the auction, with Aramco, Saudi Electricity Company (SEC) and ENOWA purchasing the largest number of carbon credits.
The carbon credit projects that benefited from the auction included 18 projects such as improved clean cookstoves and renewable energy projects.
According to Riham, three-quarters of the carbon credits originated from countries across the Middle East, North Africa and Sub-Saharan Africa, including Kenya, Uganda, Burundi, Rwanda, Morocco, Egypt and South Africa.
Trade CS Moses Kuria said despite Kenya being among countries that emit less carbon, it has disproportionately suffered from the impact of climate change. He said carbon markets offer much-needed climate finance need.
