United Nations issues 48,000 carbon credits to SABIC
Arabian Oil & Gas
27 MAY 2018
SABIC received the second issuance of carbon credits from the United Nations for a Clean Development Mechanism (CDM) project at its Al-Bayroni manufacturing affiliate, maintaining the company’s achievement of being the only organisation in Saudi Arabia to receive the sought-after credits.
SABIC received over 48,000 carbon credits for efficiency improvement by boiler rehabilitation in fossil-fuel-fired steam-boiler system for 2016 and 2017 based on actual operations. The same project had previously received around 53,000 credits for 2014 and 2015.
The Designated National Authority of Saudi Arabia, the sole entity in the Kingdom administering CDM projects, successfully supported the registration of six Saudi projects with the scheme. However, to date, only SABIC has received credits for verified emission reductions.
“We are very proud to maintain our position as the only organisation in Saudi Arabia to receive carbon credits from the UN,” said Yousef Al-Benyan, SABIC vice chairman and CEO. “We aim to be a regional leader in sustainability by investing heavily in initiatives such as these. By doing so, we are ensuring our long-term success while benefiting society, stimulating downstream growth, and supporting Saudi Vision 2030.”
Under the Clean Development Mechanism, emission-reduction projects in developing countries can earn certified emission-reduction credits and contribute to sustainable development. These saleable credits – each equivalent to one tonne of CO2 – can be used by industrialised countries to meet a part of their emission-reduction targets under the Kyoto Protocol.
“By combining sustainability and innovation, we can respond to the dynamic needs of our customers while helping to create exciting new solutions for some of the world’s greatest environmental challenges,” said Frank Kuijpers, general manager, corporate sustainability, SABIC. “The CDM has the short-term benefit of increasing our operational efficiency while strengthening the long-term prospects for our organisation.”
Ahmed Al-Jabr, Al-Bayroni president, said: “This project involved rehabilitating boilers to maximise energy efficiency and significantly reduce the use of fossil fuels. Our CDM is a highly complex project that requires technical and sustainability expertise, transparency, and the highest levels of environment, health, safety, and security. Striving to excel in these areas brings ‘Chemistry that Matters’ to SABIC.”
Sustainability is a foundational element of SABIC’s 2025 strategy, bringing financial value for shareholders, business resilience, inspired employees, stronger communities, and environmental stewardship. The second batch of carbon credits come shortly after the release of SABIC’s 2017 Sustainability Report, charting SABIC’s sustainability achievements from across the globe.
“SABIC plays a pivotal role in sustainable manufacturing efforts that are raising Saudi Arabia’s profile on the international stage,” said Abdullah Al-Sarhan, head of the Saudi Arabia’s Designated National Authority. “This is a tremendous achievement for SABIC, the country, and ultimately society as a whole.”