Middle East's Arab Region Leads in Climate Change Battle: Net-Zero Initiatives and Renewable Energy Exports
The Arab region, particularly the Gulf area, is experiencing the effects of climate change more than most due to already high temperatures exceeding the global average.
Middle Eastern countries are focusing on the economic impacts of global warming and taking action to mitigate its consequences.
Upcoming events like MENA Climate Week in Riyadh, UAE's COP28, and Egypt's COP27 demonstrate the region's commitment to addressing climate change.
Sal Jafar, CEO of ESG MENA, has observed the progress being made in the energy transition and climate change efforts in the GCC countries.
The Middle East region, historically dependent on hydrocarbon economies, is now focusing on sustainability and environmental stewardship.
This shift is necessary due to the link between atmospheric changes and financial growth in these nations.
A report by the Arab Monetary Fund warns that by 2050, the region may face significant water scarcity and agricultural productivity losses, equivalent to 14% of the area's GDP. Saudi Arabia, a major oil producer and Middle Eastern power, is making efforts towards energy transition.
The CEO of CMarkits, a UK-based energy research firm, noted that Saudi Arabia has been working on this for over a decade.
The Kingdom, historically reliant on hydrocarbon economies, is now leading a shift towards sustainability and environmental stewardship.
This transition began in 2013 with the launch of the King Abdullah City for Atomic and Renewable Energy, aimed at minimizing crude oil consumption and utilizing alternative energy sources due to rising local consumption and projected oil demand.
By 2030, the Kingdom aims to position itself as a global leader in clean energy production and reduce oil dependency, as crude oil demand is projected to reach 8 million barrels per day while the Kingdom produces 10 million barrels, resulting in an "economic security risk." This transition is underpinned by an Environmental, Social, and Governance (ESG) framework.
The Kingdom is taking steps to decrease its carbon emissions and expand its economy beyond oil.
Initiatives include capturing 44 million tonnes of CO2 annually by 2035 and utilizing 2 million tonnes of CO2 daily to produce glycol, urea, green methanol, and clean fuels.
This is being achieved through the Circular Carbon Initiative, which was introduced during the Kingdom's G20 presidency.
Saudi Aramco is a significant player in a project starting in 2027 to capture 9 million tonnes of CO2 per year, with the goal of increasing capacity to 44 million tonnes per year by 2035.
In October 2022, Saudi Arabia's sovereign wealth fund introduced a Voluntary Carbon Market (VCM) company during the Future Investment Initiative in Riyadh.
This market allows companies, including major Saudi energy players like Aramco and SABIC, to buy and trade CO2 shares on an exchange as a way to compensate for their emissions.
The VCM's voluntary nature increases its potential for success, as companies can make economic sense of reducing emissions through these investments.
Al-Shammari explained that the VCM's voluntary approach could have a greater impact than compulsory carbon markets, which have not led to significant carbon reductions in Europe.
The text discusses Saudi Arabia's potential role in leading renewable energy exports, specifically in the production and export of clean ammonia and green hydrogen.
The country's strategic location allows it to export renewable energy supplies to both Europe and other continents.
Saudi Arabia's Minister of Energy, Industry and Mineral Resources, Al-Shammari, expresses optimism about the voluntary market for carbon emissions reduction and encourages producers to minimize their carbon emissions due to the vast research and literature available on the topic.
The text also mentions Saudi Arabia's plans to export 150,000 tonnes of clean ammonia and build the world's largest green hydrogen project in NEOM, making it a significant supplier of renewable energy to Europe for the foreseeable future.
The text discusses the cost difference for producing green hydrogen in Germany ($5/kg) compared to Saudi Arabia ($1- $2/kg).
Germany, Europe's largest economy, will need to import green hydrogen from cheaper countries like Saudi Arabia for the foreseeable future.
Saudi Arabia's ACWA Power holds the world's largest green hydrogen storage unit (1.2 million tonnes of ammonia per annum), which can be easily exported to Europe.
This shift allows Saudi Arabia to transition from being a crude oil exporter to a major player in various energy fields.
Upcoming events like MENA Climate Week in Riyadh, UAE's COP28, and Egypt's COP27 demonstrate the region's commitment to addressing climate change.
Sal Jafar, CEO of ESG MENA, has observed the progress being made in the energy transition and climate change efforts in the GCC countries.
The Middle East region, historically dependent on hydrocarbon economies, is now focusing on sustainability and environmental stewardship.
This shift is necessary due to the link between atmospheric changes and financial growth in these nations.
A report by the Arab Monetary Fund warns that by 2050, the region may face significant water scarcity and agricultural productivity losses, equivalent to 14% of the area's GDP. Saudi Arabia, a major oil producer and Middle Eastern power, is making efforts towards energy transition.
The CEO of CMarkits, a UK-based energy research firm, noted that Saudi Arabia has been working on this for over a decade.
The Kingdom, historically reliant on hydrocarbon economies, is now leading a shift towards sustainability and environmental stewardship.
This transition began in 2013 with the launch of the King Abdullah City for Atomic and Renewable Energy, aimed at minimizing crude oil consumption and utilizing alternative energy sources due to rising local consumption and projected oil demand.
By 2030, the Kingdom aims to position itself as a global leader in clean energy production and reduce oil dependency, as crude oil demand is projected to reach 8 million barrels per day while the Kingdom produces 10 million barrels, resulting in an "economic security risk." This transition is underpinned by an Environmental, Social, and Governance (ESG) framework.
The Kingdom is taking steps to decrease its carbon emissions and expand its economy beyond oil.
Initiatives include capturing 44 million tonnes of CO2 annually by 2035 and utilizing 2 million tonnes of CO2 daily to produce glycol, urea, green methanol, and clean fuels.
This is being achieved through the Circular Carbon Initiative, which was introduced during the Kingdom's G20 presidency.
Saudi Aramco is a significant player in a project starting in 2027 to capture 9 million tonnes of CO2 per year, with the goal of increasing capacity to 44 million tonnes per year by 2035.
In October 2022, Saudi Arabia's sovereign wealth fund introduced a Voluntary Carbon Market (VCM) company during the Future Investment Initiative in Riyadh.
This market allows companies, including major Saudi energy players like Aramco and SABIC, to buy and trade CO2 shares on an exchange as a way to compensate for their emissions.
The VCM's voluntary nature increases its potential for success, as companies can make economic sense of reducing emissions through these investments.
Al-Shammari explained that the VCM's voluntary approach could have a greater impact than compulsory carbon markets, which have not led to significant carbon reductions in Europe.
The text discusses Saudi Arabia's potential role in leading renewable energy exports, specifically in the production and export of clean ammonia and green hydrogen.
The country's strategic location allows it to export renewable energy supplies to both Europe and other continents.
Saudi Arabia's Minister of Energy, Industry and Mineral Resources, Al-Shammari, expresses optimism about the voluntary market for carbon emissions reduction and encourages producers to minimize their carbon emissions due to the vast research and literature available on the topic.
The text also mentions Saudi Arabia's plans to export 150,000 tonnes of clean ammonia and build the world's largest green hydrogen project in NEOM, making it a significant supplier of renewable energy to Europe for the foreseeable future.
The text discusses the cost difference for producing green hydrogen in Germany ($5/kg) compared to Saudi Arabia ($1- $2/kg).
Germany, Europe's largest economy, will need to import green hydrogen from cheaper countries like Saudi Arabia for the foreseeable future.
Saudi Arabia's ACWA Power holds the world's largest green hydrogen storage unit (1.2 million tonnes of ammonia per annum), which can be easily exported to Europe.
This shift allows Saudi Arabia to transition from being a crude oil exporter to a major player in various energy fields.
Translation:
•
Translated by AI
