Climate Change | Recommendations for the Kingdom of Saudi Arabia

This publication proposes eight (8) key pillars that can leap-frog the Kingdom’s transition to a climate-first economy:

1. Status quo – five key frameworks under Vision 2030 incl. largest regional unconditional NDC commitment (278 million tCO2e pa), 50% renewable energy (2030) and net-zero by 2060;
2. Prioritize – sustaining GDP growth (at 5%+) requires Climate Risk Assessment & National Action Plan;
3. Enhance – global perception via using advanced technology & the development of a digital national GHG inventory;
4. Diversify – a targeted investment of USD 1 trillion spearheaded by PIF with a key focus on technology, AI and decarbonization of the power sector;
5. Report – a recorded 29% growth in GRI reporting following Tadawul's ESG Disclosure Guidelines (2021), regulators should consider mandatory emissions reporting for large-scale enterprise to enhance investor confidence & competitiveness;
6. Reduce – Industry 4.0 technologies should be implemented for an energy transition & emissions reduction in line with SBTis. Aramco and SABIC's Jubail CCUSHub (9 million tCO2e) is pioneering world class initiatives;
7. Finance – sustainable finance (debt + bonds) poised amounted to USD 16 billion in 2023.This is poised to grow following the introduction of Green Finance Framework & mega projects including NEOM;
8. Revolutionize – PIF's launch of the VCM of KSA will revolutionise the global carbon markets with a projected KSA VCM target size of USD 10 billion (by 2030).