Saudi Arabia, the world’s largest oil exporter, announces green goals

File Photo: Overview of Aramco’s tanks and oil pipes at the Ras Tanura Oil Refinery in Saudi Aramco and the Oil Terminal in Saudi Arabia May 21, 2018. Photo taken on May 21, 2018. REUTERS / AhmedJadallah / File Photo

October 23, 2021

Youssef mackerel

Riyadh (Reuters) – Saudi Arabia’s top oil exporter, one of the world’s largest pollutants, details plans to address climate change at an environmental event on Saturday.

First announced in March, the Saudi Green Initiative will address global warming ahead of the 26th Conference of the Parties to Climate Change (COP26) in Glasgow, October 31-November 12. We hope to agree on deeper emission reductions.

Riyadh, which has signed the Paris Climate Agreement, has not yet announced its Nationally Determined Contribution (NDC). This is the goal of individual states under global efforts to ensure that global average temperatures do not exceed pre-industrial levels and exceed 1.5 degrees Celsius.

The United States and the EU hope that Saudi Arabia will participate in a global initiative to reduce methane emissions by 30% from 2020 levels by 2030.

Saudi Arabia will generate 50% of its energy demand from renewables by 2030 and reduce carbon emissions by more than 4% of its global contribution through initiatives such as planting billions of trees in desert states I promised to do it.

The Net Zero goal has not yet been set. The United Arab Emirates, producer of Gulf OPEC, announced plans for net zero emissions by 2050 earlier this month.

Despite the move to promote renewable energy and improve energy efficiency, Saudi Arabia has been criticized for being too slow and the Climate Action Tracker ranks it as “very inadequate.”

The kingdom’s economy remains heavily dependent on oil revenues, as economic diversification lags behind the ambitions set by Crown Prince Mohammed Bin Salman. Saudi officials claim that the world will continue to need Saudi crude oil for decades to come.

And experts say it’s too early to tell what the impact of Saudi’s early solar and wind projects will be. The first renewable energy plant opened in April and the first wind farm started generating electricity in August.

Megaprojects such as the Future City NEOM also incorporate a green energy program that includes a $ 5 billion hydrogen plant, and Saudi Arabia-linked entities are shifting their focus to green financing.

Some investors have expressed concern about the Kingdom’s carbon dioxide emissions. Saudi Arabia has the lowest carbon emissions per barrel of oil, and some say that the de facto ruler, Prince Mohammed, is serious about diversifying the economy.

“Obviously, carbon dioxide emissions are a problem, but the reality is that the phasing out of carbon is slowing down and we emphasize that oil is still here for some time,” said Tim Ash of BlueBay Asset Management. I commented by email.

(Report by Yousef Saba, additional report by Raya Jalabi in Dubai, edited by Nick Macfie)

Saudi Arabia, the world’s largest oil exporter, announces green goals

Source link Saudi Arabia, the world’s largest oil exporter, announces green goals

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