Given the expected eventual decline in global oil demand and prices, Saudi Arabia’s efforts to diversify its economy away from oil are inextricably linked to its climate policy. Successful efforts in climate change mitigation could prolong Saudi Arabia’s political and economic influence granting policymakers the power to shape the energy transition in such a way as to ensure a greater long term role for cleaner hydrocarbons, simultaneously positioning the country as a leader in sustainable development. Effective climate action is urgently required as the Gulf region is among the world’s most vulnerable to the impacts of climate change, including rising temperatures, water scarcity, and extreme weather events.
In its pursuit of net-zero emissions over the coming decades, Saudi Arabia is promoting its own narrative: a narrative of transitioning to a net-zero world, which is portrayed as a more just approach than one that advocates for a rapid transition away from fossil fuels as the only solution.
This study takes stock of Saudi Arabia’s net-zero ambitions in terms of its formulation, the status of its implementation and whether the narrative is a viable alternative to one that “merely” advocates the removal of state support for fossil fuels and the pricing of emissions. The study argues that there is a substantial gap between the Kingdom’s ambitions and implementation and questions some of the practical complexities of the overarching Circular Carbon Economy (CCE) approach. Simultaneously, the study acknowledges that the CCE approach offers collaboration opportunities needed for achieving the required economies of scale in renewables, hydrogen, and Carbon Capture Utilisation and Storage (CCUS). In this regard, the study points towards the fact that the EU and its member states are starting to develop policies and capacities that allow for deeper and wider avenues of cooperation with Saudi Arabia and its net-zero world narrative.
Read the entire publication: “Saudi-Arabia’s Net-Zero World Narrative” from here as a PDF.
