VCM and Tradewater partner to scale climate impact projects in Saudi Arabia
Tradewater credits generated from projects in the Kingdom will be made available through VCM’s exchange
CHICAGO and RIYADH, Saudi Arabia [September 29, 2026] — Superpollutant elimination project developer Tradewater has partnered with Regional Voluntary Carbon Market Company (VCM), a company established by the Public Investment Fund (PIF) and Saudi Tadawul Group (STG), to prevent the emissions of potent greenhouse gases that are also ozone-depleting substances (ODS) through projects in Saudi Arabia (KSA). The development expands the supply of Saudi-generated carbon credits available to corporate buyers and strengthens the Kingdom’s carbon market ecosystem by connecting locally generated, highest quality ODS destruction credits with institutional market infrastructure and corporate buyers. The credits will be made available through VCM’s exchange at the time of VCM’s Saudi-generated carbon credits auction at CMF Select Red Sea 2026. The effort is part of Tradewater’s mission to prevent 30 million tons of CO2 equivalent (CO2e) by 2030.
Chlorofluorocarbons (CFCs), are among the oldest synthetic refrigerants. They were fully phased out in KSA by 2010. However, legacy stocks remain with importers, retailers, and in older equipment. Without incentives for safe destruction, these gases risk leaking into the atmosphere over time. Once these superpollutants are emitted, they cannot be captured or sequestered. Tradewater works with local partners to identify, collect and permanently destroy these refrigerants before they escape, and has already recovered thousands of kilograms of CFCs across KSA.
VCM will bring Tradewater carbon credits to the market generated by an ODS destruction project in KSA (Middle East 3 – Saudi Arabia – ACR 1215). The project received a Tier 1 rating from Calyx Global and an A rating from BeZero Carbon. The agreement was announced during Climate Week NYC and includes delivery of an initial tranche of credits to VCM, with a second tranche expected to follow soon after. Tradewater is also joining the VCM exchange platform as a participant.
“Expanding the supply of high-integrity carbon credits generated in Saudi Arabia is an important part of developing a deeper and more effective carbon market in the Kingdom,” says Erik Ringvold, Chief Business Development Officer, VCM. “Tradewater brings proven technical expertise to an area where targeted action can create significant and measurable climate impact. By bringing these credits to VCM’s marketplace, we are connecting climate projects taking place in Saudi Arabia with companies seeking credible climate action and helping create an ecosystem where project development, climate finance and corporate demand reinforce one another.”
By backing a high-integrity, CCP-approved carbon credit project located within KSA, VCM and its clients are contributing to systems that avoid emissions at their source, supporting the Kingdom’s refrigerant management industry, and creating value within the Kingdom’s emerging carbon economy. This transaction also lays the groundwork for further collaboration, positioning both companies to scale refrigerant destruction across Saudi Arabia and the broader Middle East.
“In Saudi Arabia, we work hand in hand with exceptional local partners driving project implementation. VCM and its clients bring demand for the credits that work generates, which both validates and strengthens the local lifecycle refrigerant management system we’re building, enabling us to accelerate the work, says Kirsten Love, Chief Marketing Officer at Tradewater.” VCM’s support means we can continue to scale our projects across the Kingdom and offer more Saudi businesses a clear pathway — and a genuine financial incentive — to destroy this material before it leaks. The result is permanent, additional, and measurable superpollutant elimination at scale. We are thrilled to be embarking on this partnership.”
Middle East 3 – Saudi Arabia involved the collection of CFC-12, which has a global warming potential (GWP100) 12,500 times that of CO₂. Once aggregated, the material was transported to a Montreal Protocol-compliant destruction facility, where it was destroyed using a process that achieves >99.99% destruction efficiency.
About VCM
VCM was established by the Public Investment Fund (PIF) and Saudi Tadawul Group Holding Company (Saudi Tadawul Group) in October 2022. PIF holds an 80% stake and Saudi Tadawul Group holds a 20% stake in the company. VCM aims to create 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 exchange for the trading of voluntary carbon credits and advisory services that support organizations in their decarbonization efforts.
In October 2022, VCM hosted its first auction at the sixth Future Investment Initiative (FII) in Riyadh. In June 2023, VCM successfully auctioned 2.2 million tons of voluntary carbon credits in the largest-ever carbon credit sale in Nairobi, Kenya. In October 2023, VCM and PIF hosted the world’s first Global South Carbon Market Conference at the seventh FII edition in Riyadh. In November 2024, VCM launched the region’s largest carbon credits exchange on the side lines of COP29, while auctioning over 2.5 million tons of voluntary carbon credits in its third auction.
About Tradewater
A certified B Corp, Tradewater directly combats climate change by identifying, collecting, and eliminating the release of non-CO₂ superpollutants—including halocarbons from old refrigerants, excess halon gasses from canisters, and methane from actively leaking oil and gas wells. These critical environmental actions generate high-quality carbon offset credits. The Tradewater team has eliminated over 12.4 million tons of CO2 equivalent since inception and is on a path to prevent at least 30 million tons by 2030 — similar to removing nearly 7 million gas-powered cars from U.S. roads. Every Tradewater credit is backed by rigorous third-party verification and issued by leading registries to ensure maximum integrity, additionality, and accuracy.
Media contact
Contact VCM: Rohan Shams, Head of Marketing and Communications
Email: rshams@vcm.sa
Contact Tradewater: Kirsten Love, Chief Marketing Officer
Email: klove@tradewater.us
Learn more about our work
Targeting superpollutants: The fastest path to climate impact
The climate crisis demands urgent solutions. While most investment flows toward long-term carbon removal, proven…
Why this work matters now
The Intergovernmental Panel on Climate Change (IPCC) has determined that we must limit global warming…
Why carbon credits are critical
At Tradewater, we believe that carbon offset credits play a crucial role in the fight…