Value of Oman’s carbon market projected at $500m annually
Published: 03:10 PM,Oct 01,2024 | EDITED : 07:10 PM,Oct 01,2024
A number of renewable energy and sustainability initiatives are already generating carbon credits in Oman.
MUSCAT, OCT 1
The potential of Oman’s Voluntary Carbon Market (VCM) is estimated at $500 million annually, underscoring opportunities for trade in carbon offset credits via various methodologies, according to a key official of the country’s soon-to-be established Oman Net Zero Centre.
Mohsin al Jabri, a senior representative of this pivotal national agency tasked with orchestrating Oman’s pathway to Net Zero by 2050, said part of the Net Zero Centre’s remit is to oversee the management of the country’s carbon crediting system, encompassing tracking, validation and registering credits between stakeholders.
In a presentation to business leaders at the Korea-Oman Green Business Roundtable, hosted recently by the Korea Embassy in Muscat, the official listed renewable energy projects, agro-forestry and afforestation initiatives as among various types of schemes presently being harnessed for carbon credit opportunities.
Going forward, however, these opportunities could potential include Carbon Capture & Storage (CCS), Carbon Capture Utilisation & Storage (CCUS), Bioenergy with CCS, Coastal nature-based solutions such as mangroves, Flaring reduction, Management of Fugitive Gases, Blue Carbon production, Direct Air Capture, Electrification of industry and transport, Embracing agricultural best practices to hold more carbon in the soil, CO2 sequestration by accelerating natural weather processes, and Peridotite mineralization, among others.
Importantly, the development of the Voluntary Carbon Market will unlock a host of other benefits for Oman. Besides supporting national decarbonisation targets, a robust VCM will enhance Oman’s competitive advantage, improving its ability to attract FDI to support investment for the country’s ambitious energy transition.
Furthermore, the VCM has the potential to generate co-benefits such as additional revenues for the government and private sectors, thereby contributing to GDP growth and job creation. Additionally, the carbon market can help improve the capabilities of SMEs, notably by involving them in the market value chain.
Already, a number of government ministries, as well as public and private sector organisations, are capitalizing on VCM opportunities. In August, the Environment Authority inked a pact with the Oman Energy Association (OPAL) to set up the Green Alliance aimed at generating carbon credits through afforestation initiatives. Last October, the Authority signed an agreement with MSA Green Projects to support the Oman Blue Carbon project for the cultivation of 100 million mangrove trees in Al Wusta.
The potential of Oman’s Voluntary Carbon Market (VCM) is estimated at $500 million annually, underscoring opportunities for trade in carbon offset credits via various methodologies, according to a key official of the country’s soon-to-be established Oman Net Zero Centre.
Mohsin al Jabri, a senior representative of this pivotal national agency tasked with orchestrating Oman’s pathway to Net Zero by 2050, said part of the Net Zero Centre’s remit is to oversee the management of the country’s carbon crediting system, encompassing tracking, validation and registering credits between stakeholders.
In a presentation to business leaders at the Korea-Oman Green Business Roundtable, hosted recently by the Korea Embassy in Muscat, the official listed renewable energy projects, agro-forestry and afforestation initiatives as among various types of schemes presently being harnessed for carbon credit opportunities.
Going forward, however, these opportunities could potential include Carbon Capture & Storage (CCS), Carbon Capture Utilisation & Storage (CCUS), Bioenergy with CCS, Coastal nature-based solutions such as mangroves, Flaring reduction, Management of Fugitive Gases, Blue Carbon production, Direct Air Capture, Electrification of industry and transport, Embracing agricultural best practices to hold more carbon in the soil, CO2 sequestration by accelerating natural weather processes, and Peridotite mineralization, among others.
Importantly, the development of the Voluntary Carbon Market will unlock a host of other benefits for Oman. Besides supporting national decarbonisation targets, a robust VCM will enhance Oman’s competitive advantage, improving its ability to attract FDI to support investment for the country’s ambitious energy transition.
Furthermore, the VCM has the potential to generate co-benefits such as additional revenues for the government and private sectors, thereby contributing to GDP growth and job creation. Additionally, the carbon market can help improve the capabilities of SMEs, notably by involving them in the market value chain.
Already, a number of government ministries, as well as public and private sector organisations, are capitalizing on VCM opportunities. In August, the Environment Authority inked a pact with the Oman Energy Association (OPAL) to set up the Green Alliance aimed at generating carbon credits through afforestation initiatives. Last October, the Authority signed an agreement with MSA Green Projects to support the Oman Blue Carbon project for the cultivation of 100 million mangrove trees in Al Wusta.