DUBAI, United Arab Emirates — One of the world’s fossil fuels. to diversify revenue, energy exports form the backbone of Saudi Arabia’s economy as the world increasingly looks to transition away from reliance on fossil fuels. The country is forecast to make $150 billion, Saudi Arabia, announced Saturday it aims to reach “net-zero” greenhouse gas emissions by 2060, joining more than 100 countries in a global effort to try and curb artificial climate change. Although the kingdom will aim to reduce emissions within its borders, there is no indication Saudi Arabia will slow down investments in oil and gas or relinquish sway over energy markets by moving away from the production of
in revenue this United States and the European Union have aimed for 2050.from oil alone. The announcement, made by Crown Prince Mohammed bin Salman in scripted remarks at the start of the kingdom’s first-ever Saudi Green Initiative Forum, was timed to make a splash before the global climate conference began in Glasgow, Scotland. The prince vowed Saudi Arabia will plant 450 million trees and rehabilitate vast swaths of land by 2030, reducing more than 270 million tons of a year and attempting to turn the landlocked city of Riyadh into a more sustainable capital. The kingdom joins the ranks of Russia and China on their stated net-zero of 2060. The
In making the announcement, analysts say the kingdom ensures its continued seat at the table in globaltalks. Saudi Arabia has against those who say fossil fuels must be urgently phased out, warning that a sudden switch could lead to price volatility and shortages. Recently show how the kingdom and other nations are lobbying behind the scenes ahead of the COP26 summit to change the language around emissions. In transitioning domestically, the domain could also take the oil and gas it subsidizes locally and allocate it as a more lucrative export
to China and India, where demand is expected to. “The export of its energy sources drives the kingdom’s economic growth. It’s no state secret,” Saudi Energy Minister Prince Abdulaziz bin Salman said at the forum in Riyadh. Saudi Arabia says it will reach net zero through a so-called “Carbon Circular Economy” approach, which advocates “reduce, reuse, recycle and remove.” It is an unpopular strategy among because it touts still unreliable carbon capture and storage technologies rather than honing in on the phasing out fossil fuels.
The announcement provided few details on how the kingdom willshort- and medium-term, including when it will peak its emissions. Experts say sharp cuts are needed worldwide as soon as possible to ensure the world has a chance of capping at 1.5 degrees Celsius (2.7 degrees Fahrenheit), as agreed in the 2015 Paris accord. The kingdom — home to roughly 17% of proven petroleum reserves — supplies 10% of global oil demand.
As OPEC’s heavyweight, Saudi Arabia holds tremendous influence over energy markets and can pressure other producers to fall in line, as seen last year when the kingdom triggered a price war that successfully gotin demand from the pandemic. Saudi Arabia said the transition to net-zero carbon emissions “will be delivered in a manner that preserves the kingdom’s energy markets.”
Gulf oil producers argue against the rapid phasing out of fossil fuels by saying that a sudden shift would hurt low-income nations and populations lacking direct energy access. Saudi Arabia also advocates for language that refers to greenhouse gases, a basket that includes more than just fossil fuels. We believe that carbon capture, utilization and storage, direct air capture, hydrogen, and low carbon fuel are themake sure this effort will be inclusive,” Prince Abdulaziz said of the global energy transition.