Saudi Aramco Sets Record with Over 600,000 Carbon Credits Retired in 2024

Saudi Aramco retired a record volume of carbon credits in 2024, offsetting over 600,000 tonnes of CO₂ equivalent (tCO₂e) across both its crude oil operations and broader corporate footprint. The figures, shared in the company’s latest ESG report, reflect Aramco’s growing activity in the voluntary carbon market.

Low-angle close-up of a dense mangrove forest, with a cargo plane visible in the distant sky. AI generated picture.

Of the total 605,662 tCO₂e retired, over 15% were linked to five ‘carbon neutral’ oil shipments—each carrying two million barrels of Arabian Light crude. These deliveries, certified under PAS 2060 standards for carbon neutrality, follow the launch of Aramco’s offsetting programme the previous year.

‘After demonstrating progress in asset-level emission reduction initiatives, Aramco retired 92,559 tCO₂e carbon credits, with 75% being from removal-based projects, to offset the residual emissions from these shipments’, the company reported.

The offsetting covered upstream and shipping emissions, which averaged 7.48 kgCO₂ per barrel of oil equivalent (boe). Emissions during production and loading were 2.95 kgCO₂e/boe at the Ras Tanura terminal and 2.56 kgCO₂e/boe at Juaymah. The carbon credits came from projects certified by Verra and Gold Standard, located in China, India, Panama, the US, and Vietnam—including nature-based initiatives like grassland restoration and engineered solutions such as wastewater treatment.

Still, the programme excluded emissions from the combustion of the oil, which would amount to an estimated 4.25 million tCO₂e from the five cargoes alone—underlining the limits of partial offsetting.

Beyond shipping, Aramco also retired 513,103 tCO₂e in credits to address its direct (Scope 1) and electricity-related (Scope 2) emissions—up 3% from the previous year. While natural gas production drove Scope 1 emissions higher, Scope 2 emissions declined slightly due to cleaner imported power sources.

‘These credits included a mix of nature-based projects, like mangrove and forest restoration, and technology-based initiatives, such as landfill gas capture and reducing gas leakages’, the company stated.

Aramco has pledged net-zero emissions for Scopes 1 and 2 by 2050 but has not released data on its Scope 3 emissions, which typically account for the majority of oil sector's environmental impact. Meanwhile, it continues to build its offset portfolio, acquiring 1.1 million credits in 2024 following a 1 million tCO₂e purchase the year prior.