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Aramco sets up $1.5bn sustainability fund for global investments

Aramco sets up $1.5bn sustainability fund for global investments
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Riyadh – Mubasher: Saudi Arabian Oil Company (Aramco) announced the initiation of a $1.50 billion sustainability fund that will target investments worldwide.

The fund will be one of the world’s largest sustainability-focused venture capital (VC) funds, with a goal of investing in technologies for further enhancement towards a stable and inclusive energy transition, according to a press release.

Unveiled at the sixth edition of the Future Investment Initiative (FII) in Riyadh, the new fund will be managed and operated by Aramco Ventures, the venture capital arm of Aramco. It aims to fulfill the growing energy demand across the globe, with lower greenhouse gas emissions.

Aramco’s sustainability fund will initially highlight the fields of carbon capture and storage, greenhouse gas emissions, energy efficiency, and nature-based climate solutions. Other initial focus will be on digital sustainability, hydrogen, ammonia, and synthetic fuels.

The fund endorses Aramco’s announced net-zero 2050 ambition in its fully-owned operational assets in addition to the development of new lower-carbon fuels.

During the FII conference, Aramco’s wholly-owned subsidiary Aramco Trading Company took part in the first voluntary carbon credits auction which was organised by the Public Investment Fund (PIF).

Earlier in 2022, Aramco collaborated with PIF to be part of a regional voluntary carbon market that is projected to be launched in Saudi Arabia in 2023. Saudi Arabia’s sovereign wealth fund recently announced the establishment of the Regional Voluntary Carbon Market Company with the listed Saudi Tadawul Group Holding Company.

Aramco President and CEO, Amin Nasser, said: “The sustainability fund reinforces our commitment to leverage innovative technologies that will make a difference in addressing the dual challenge of achieving greater energy security and sustainability, and show how these two great imperatives can and must co-exist.”

Nasser added: “Our participation in the MENA region’s first voluntary carbon market in Saudi Arabia represents another pathway towards our long-term net zero ambition and demonstrates how we can deliver a multi-pronged approach in addressing the climate challenges we face.”