COP29 Spotlight: Partnership Breakthrough Opens Global Carbon Markets To Middle East Projects

A groundbreaking partnership was launched at COP29 and is set to open the carbon markets in the Middle East and North Africa (the MENAP region) to international buyers.

Ahya’s voluntary carbon marketplace, Tawazun, has partnered with Cloverly, a leading US-based voluntary carbon marketplace. This partnership seeks to bridge the gap between Middle Eastern projects and international buyers, opening new avenues for sustainability, innovation, and economic growth in the region. “Our focus has always been on accessibility and sustainability,” says Ahya CEO and Founder, Salaal Hasan. “With Cloverly’s advanced inventory management and our deep understanding of the Middle Eastern regulatory landscape, we’re creating a comprehensive ecosystem that simplifies climate action for enterprises while driving impactful outcomes.”

Cloverly, with dual headquarters in Atlanta and London, brings robust technology tailored to high-tech carbon markets in the US and Europe. Its supply-side software, Catalyst, offers granular inventory management. Meanwhile, Ahya specializes in navigating the MENAP region’s regulatory nuances, ensuring compliance with both local and international standards.

Tawazan currently features 48 carbon projects across Pakistan, Egypt, Saudi Arabia, and the UAE. Of these, 12 are directly registered on the marketplace, primarily focusing on carbon dioxide removal through nature-based restoration projects. Notable examples include Pakistan’s Delta Blue Carbon project – purchased by Microsoft – and SABIC’s massive carbon capture initiative in Jubail, the largest of its kind globally. These sellers can now easily connect to the second-largest group of carbon credit buyers globally—industries such as energy, chemicals, and manufacturing. “These hard-to-abate sectors, including giants like Aramco and SABIC, have a pressing need for high-quality carbon credits to meet ambitious net-zero goals,” Hasan explains.

There’s a need to ensure that the benefits of carbon markets reach those most affected by climate change. Underrepresented communities, particularly those in low- and middle-income countries most vulnerable to climate change impacts, may not be adequately included without cost-effective credibility, verification mechanisms, and access to international markets.

One of the most transformative aspects of the Tawazan marketplace is its focus on inclusivity. By reducing barriers to entry, Tawazan empowers smaller developers and underfunded initiatives to participate in the carbon market. Unlike traditional models that impose hefty registration fees, Tawazan charges no upfront costs for project listings. “One of our key innovations is eliminating hefty upfront fees, often ranging from $1 to $2 million, which have historically deterred project developers,” Hasan says. Instead, it operates on a success-based transaction fee. “Our approach levels the playing field,” the founder explained. “Even the smallest developers can now access global markets without financial strain.”

High-quality, impactful projects that previously faced financial barriers—such as mangrove forest restoration in the UAE or biochar initiatives in Pakistan—can now leverage this partnership to access international buyers without prohibitive upfront costs. “Our approach is to simplify everything from measuring emissions to verifying projects,” the founder explains. “For example, Tawazan enables project developers to list their initiatives within 24 hours, offering them immediate access to revenue streams while maintaining the integrity and transparency required by international standards.”

The Middle East has historically struggled with accessibility and trust in carbon markets. Tawazan seeks to change this narrative with stringent criteria for listing on the marketplace and a team of scientists who help develop and apply the criteria. Projects must issued and registered with global carbon registries that Tawazan works with, such as Gold Standard and Verra and adhere to the core carbon principles and criteria set by the Integrity Council for the Voluntary Carbon Market (ICVCM).

Tawazan is also integrated with 10 global databases, including IPCC, Ecoinvent, and IEA, to access comprehensive emission factor data for accurate measurement. The platform recognizes that many project developers, especially in emerging markets, may lack the internal capacity to perform robust MRV. The platform aims to provide the necessary tools, guidance and support to help sellers meet global standards by partnering with companies like NVIDIA to leverage advanced technologies for more efficient and accurate MRV.

“A key element of our work is enabling data-driven decision-making,” the founder says. “Emerging markets often lack the capacity for robust measurement, reporting, and verification (MRV), which is critical for accessing global markets. Our tools address this gap, ensuring projects meet stringent international standards.”

Carbon markets in the Gulf Cooperation Council (GCC) countries are still in their early stages and often face several structural challenges: limited availability of emissions data, issues with emissions disclosure, and gaps in institutional capacity.

However, the region is taking significant strides in advancing climate policy. Saudi Arabia’s Public Investment Fund recently launched the Riyadh Voluntary Carbon Market, and Egypt and Pakistan have introduced policy guidelines to support carbon offset mechanisms. Yet challenges such as establishing national registries and MRV systems remain.

“The region is taking a long-term view,” Hasan observes. “Saudi Arabia, for example, is focusing on aligning its climate initiatives with broader economic goals. While 63% of its GDP is still oil and gas, the country has committed to reducing this to 40% by 2030, creating significant demand for carbon credits and offsets.” Egypt and Pakistan are also stepping up: “Both nations have announced frameworks that align with global standards, supported by capacity-building bodies like the Global Green Growth Institute,” he notes. Ahya’s efforts in these regions are gaining recognition – the company was just awarded the Africa Green Growth Award in Egypt.

However, Hasan highlighted that the private sector will have to take a leading role in driving a greener economy: “I’m on Pakistan’s carbon markets committee, and I’m backed by Saudi Arabia’s Ministry of Investment. We also work with their Ministry of Energy. Before I left my executive roles to focus on this work I attended an economic forum where I met Senator John Kerry. I was curious about the global agenda on climate action. Senator Kerry’s response stuck with me—he said, ‘Policy never moves in a straight line.’ He shared how he lobbied for the Paris Agreement, only to see it reversed six months after leaving office. Similarly, federal-level environmental policies in the U.S. often face uneven implementation at the state level.

“However, his advice to me was to focus on the private sector’s role. This is crucial, especially when you consider global businesses like PepsiCo, Aramco, Amazon, and others. For countries like Pakistan and Egypt, the private sector is vital—both are major textile exporters primarily serving the European Union. Understanding the private sector’s influence on carbon markets and sustainability initiatives is key to driving meaningful progress globally.”

As the world grapples with the urgent need for climate action, Ahya’s mission is to drive sustainability initiatives as a financially viable, accessible, and equitable opportunity for all. “This is not just about compliance—it’s about innovation and ensuring that sustainability drives revenue and growth for businesses. With our technology and partnerships, we’re making that vision a reality,” says Hasan.

“We are advocating for projects to enter voluntary carbon markets that enable broader economic benefits,” the founder explains. “Mangrove plantations, biochar initiatives, and clean cookstove projects are some of the scalable solutions we support.”