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The Gulf giants Saudi Aramco and ADNOC (Abu Dhabi National Oil Company) have been actively pursuing diversification of their revenue streams, aiming to explore profitable ventures beyond oil. This move is driven by the necessity to finance extensive state programs and, in Saudi Arabia’s instance, the Vision 2030 plan spearheaded by Crown Prince Mohammed bin Salman.

This plan entails substantial investments in futuristic projects across the Saudi deserts, necessitating alternative sources of income. One such exciting project is lithium extraction from brine.

The purpose aligns with the global shift to clean energy and capitalizing on the EV market of Saudi Arabia and the United Arab Emirates. The demand for lithium is also expected to surge as it’s the key component of EV batteries.

Aramco and ADNOC’s Ambitious Lithium Extraction Plans

As per reports, Aramco and ADNOC’s lithium extractions plan are in a nascent stage. They are aiming to introduce a completely new technology i.e. extracting lithium from brine. Middle East contributes to global 55% of brine production originating from Saudi Arabia, UAE, Kuwait, and Qatar.

Both companies are exploring ways to tap lithium-rich brine from the vast stretches of salars and oilfield brines and subsequently process it to extract superior quality lithium for EV industrial applications.

Lithium extraction is an exhaustive mining process, that leaves behind a significantly high carbon footprint. Not only this, refining the mineral from brine involves high cost and a low concentration of net product. To mitigate environmental and cost implications, both ADNOC and Aramco will be using Direct Lithium Extraction (DLE) technology.

DLE is a new-age innovative solution to produce high-grade commercial lithium at a low cost for the clean energy manufacturing industry. This technique employs a selective absorbent to extract lithium from brine water. The resultant solution is further purified to produce high-grade lithium carbonate and lithium hydroxide.

Unlike other methods, DLE efficiently eliminates crucial impurities, ensuring a superior quality end-product.

A Diagrammatic Representation of Direct Lithium Extraction (DLE) from Brine Technology

DIRECT LITHIUM EXTRACTION

Source: ibatterymetals.com

While ADNOC has not completely disclosed its extraction plan, it’s certainly exploring the latest and advanced technologies to make a smooth transition.

Filtering the ultralight battery metal from saltwater has the advantage of bypassing the necessity for expensive and environmentally taxing open-pit mines or extensive evaporation ponds. Such traditional rare earth mining processes are widely used in Australia and Chile.

America’s key players like ExxonMobil and Occidental Petroleum have also hailed the lithium extraction process from brine. They intend to line up with major oil giants across the globe to divulge from high carbon-emitting fossil fuels.

Gulf Nations Riding High on the Lithium Surge Wave

The Middle East has embraced the electric vehicle revolution with robust investment. The EV market was valued at US$2.7 billion in 2023 and is predicted to hit US$7.65 billion by 2028.

The transition in the transport sector from oil to electricity has pushed the demand for lithium in the UAE and Saudi Arabia. Both nations are bolstering the production of Li batteries and EVs with significant investment.

The UAE, as a part of its commitment to achieving net-zero emissions target aims to have 50% of all vehicles on the road as electric and hybrid by 2050.

Saudi Arabia has already launched its domestic EV brand CEER Motors two years back projecting an ambitious plan to manufacture 500,000 vehicles/year by 2030. This would automatically boost lithium demand and promise long-term green prospects for the rare earth mineral.

A significant update from the news is- the Saudi-based mining company Ma’aden is ramping up its pilot facilities to extract lithium from seawater using membrane-based lithium extraction technology.

Ma’aden’s endeavors to extract lithium from seawater could play a crucial role in addressing the increasing demand for this vital mineral in Saudi’s EV market.

In recent developments, UAE’s KEZAD Group and Titan Lithium sealed a $1.4 billion (AED 5 billion) deal to construct a high-tech lithium processing plant in Abu Dhabi.

According to the KEZAD group, on completion, the plant will import ~ 150,000 tonnes of lithium annually from their mines located in Zimbabwe. It will undergo processing in Abu Dhabi.

Mohamed Al Khadar Al Ahmed, CEO of KEZAD Group has exuberantly expressed his views on this momentous deal,

“We welcome Titan Lithium Industries to Kezad and look forward to the project’s significant contribution to the UAE’s strategic vision of diversifying its economy and reinforcing its position in the global market.”

The top Gulf nations – Saudi Arabia and UAE have abundant oil resources. They enable them to undertake financial ventures with confidence. Aramco and ADNOC have already envisioned the rising trend of lithium demand in the EV manufacturing sector.

We shall keep you posted with the latest innovations, developments, and deals happening in the rapidly growing lithium industry and EVs in the Middle East towards global sustainability.

The post Gulf Oil Giants Saudi Aramco and ADNOC to Launch Sustainable Lithium Extraction Projects appeared first on Carbon Credits.

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The Strategic Case for Nature-Based Carbon Investments

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Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.

1. Define the sourcing problem before choosing a project

Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.

This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.

CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.

2. Develop nature-based carbon investments around the actual supply chain

The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?

Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.

Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.

The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.

3. Compare the proposal with other ways to protect supply

WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.

The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.

The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.

The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.

4. Establish what the carbon outcome could count toward

Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?

Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.

SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.

For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.

Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.

5. Build a financial case that survives weaker assumptions

Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.

Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.

Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.

A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.

6. Fund a pilot with a clear expansion decision

Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.

Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.

Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.

This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.

Discuss a sourcing opportunity with CCC

Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.

Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.

Sources

  1. Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
  2. World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
  3. Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
  4. United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
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How to buy plastic credits, and what to check before you do

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A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.

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Carbon Footprint

EU carbon credit claims after 27 September 2026

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EU carbon credit claims changed on 27 September 2026, the day the Directive (EU) 2024/825 began to apply across the European Union. The change is narrow. It changes how a company can talk about the credits it buys. A product can no longer be called neutral on the strength of compensation alone; however, every specific, evidenced statement about what a company measured, reduced, and funded stays fully available.

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