Saudi Arabia's Green Finance Framework: Boosting Climate Financing and Net-Zero Emissions by 2060
The Saudi Arabian Ministry of Finance has introduced a Green Finance Framework to increase public and private participation in climate financing.
This initiative aims to help Saudi Arabia reach its sustainability goals, including the net-zero emissions target by 2060.
The framework is expected to reduce emissions through a circular carbon economy approach and establish Saudi Arabia as a regional leader in sustainable finance.
The Kingdom announced its net-zero emissions goal in October 2021 and plans to reduce greenhouse gas emissions by 278 million tonnes annually by 2030, aligning with the Paris Agreement.
The Paris Agreement is a 2015 international treaty aiming to limit global temperature rise to 1.5 degrees Celsius above pre-industrial levels.
The Kingdom has been leading initiatives like the Saudi Green Initiative (SGI) to combat climate change.
On March 27, 2023, the Kingdom celebrated the first SGI Day, emphasizing a sustainable future.
Over 80 public and private sector projects collaborated under the theme "For Our Today and Their Tomorrow: KSA Together for a Greener Future." Saudi Arabia has installed 2.8 gigawatts of renewable energy, powering over 520,000 homes, and has projects underway to increase capacity.
Over 49 million trees and shrubs have been planted since 2021, and land rehabilitation efforts have been made.
Energy company Saudi Aramco, in partnership with the Ministry of Energy, is constructing a carbon capture and storage hub in Jubail with a 9 million tonne annual storage capacity, expected to be completed in 2027.