About the Country

Saudi Arabia

In November 2016, Saudi Arabia ratified the Paris Agreement and its Intended Nationally Determined Contribution, which aims to annually avoid up to 130 MtCO2e by 2030. Key to this goal is diversifying the economy and realizing the related mitigation co-benefits. Currently, Saudi Arabia has focused its activities through 2030, though states that it will reassess and create goals for 2050.

Saudi Arabia’s primary concern when it comes to both mitigating emissions and pursuing sustainable development is economic diversification at the national level, and to this end is looking to identify other activities aside from oil production, processing, and export to support its economy. Additionally, its NDC calls out investment in other sectors such as financial services, medicine services, education, tourism, renewable energy and energy efficiency technologies, to spur economic growth and contribute to the co-benefits of economic diversification in the context of an oil society.

The Kingdom is focused on five areas of mitigation activities: energy efficiency, renewable energy, carbon capture and utilization/storage, utilization of gas (diversifying energy mix), and methane recovery and flare minimization. For energy efficiency, it plans to expand its Efficiency Program (which already looks at three key sectors: industry, buildings, and transportation, totaling 90% of its energy demand), explore the role of efficiency standards for the building and transport sectors, and encourage the conversion of single cycle power plants to combined cycle power plants. On the renewables side, the Kingdom states an intention to invest and implement renewables programs including solar PV, solar thermal, geothermal, and waste to energy systems. With respect to carbon capture, Saudi Arabia plans to build the world’s largest carbon capture plant (Hawiyah NGL plant) to capture and purify about 1,500 tons of CO2 a day for use in other petrochemical plants. It also will encourage investment regarding natural gas and its development potential, and take action to conserve, recover and reuse hydrocarbon resources and minimize flaring and fugitive emissions.

Take Action

Commit to double energy productivity

Forward-looking companies are realising the transformational benefits of setting an ambitious energy productivity goal, while making a vital contribution in the transition to a low-carbon economy.

The benefits range from huge cost savings and improved energy security, to driving innovation throughout the company. And crucially, many companies are achieving an immediate impact on profitability as well as safeguarding future returns.

Companies can seize these opportunities by committing to double energy productivity through the EP100 initiative, brought to you by The Climate Group in partnership with the Alliance to Save Energy.

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Join the Low Carbon Technology Partnerships initiative

The Low Carbon Technology Partnerships initiative (LCTPi) is comprised of over 160 companies and 70 partners that are committed to accelerating the transition to a low-carbon economy.

Led by the World Business Council for Sustainable Development (WBCSD) and supported by We Mean Business partners, LCTPi offers a collaborative platform for businesses and policymakers to scale up deployment of business solutions to a level and speed that are consistent with limiting global warming to below 2°C.

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Commit to 100% renewable power

Forward-looking companies are harnessing the benefits of transitioning to 100% renewable power, including cost reduction, increased innovation and reputational gains.

By transitioning electricity needs to renewable sources, businesses are also playing a crucial role in driving the creation of a thriving, global market for renewable generation – a game-changer in reducing emissions.

Companies committed to 100% renewable power will be invited to join RE100 brought to you by The Climate Group in partnership with CDP. RE100 is a global, collaborative initiative uniting influential businesses committed to using 100% renewable electricity.

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Commit to implement the recommendations of the Task Force on Climate-related Financial Disclosures

Climate change poses serious risks to the global economy. Nonetheless, investors and financial markets lack clear and comparable information about which companies or assets are most exposed to this issue and which are best prepared.

To address this issue, companies are encouraged to commit to implement the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). The TCFD has published recommendations for reporting climate-related financial information in mainstream reports (annual financial filings).

Companies, investors and financial organizations globally are encouraged to implement the recommendations to allow a more efficient allocation of capital, improve the dialogue among all financial players and support a smooth and rapid transition to a low-carbon economy.

Take Action

Adopt a science-based emissions reduction target

Leading businesses recognise the opportunity – and the imperative – to be part of the low-carbon transition. Their future growth and competitiveness hinges on it.

By setting clear, ‘science-based’ emissions reduction targets, companies ensure their plans for carbon reduction meet the level of ambition needed to limit the increase in global average temperature to well below 2°C.

Science-based targets enable companies to play their part in achieving this goal while harnessing climate action as a driver of innovation, competitiveness, risk management and growth.

Companies can develop targets via the Science Based Targets initiative (SBTi). The SBTi is a collaboration between CDP, World Resources Institute (WRI), the World Wildlife Fund for Nature (WWF) and the United Nations Global Compact (UNGC).

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Commit to electric vehicles and charging infrastructure

The transport sector is the fastest-growing contributor to climate change, accounting for 23% of global energy-related greenhouse gas emissions. Electric transport offers a major solution in cutting millions of tons of greenhouse gas emissions per year, as well as curbing transport related air and noise pollution.

With businesses owning over half of all registered vehicles on the road, it is crucial that companies lead the shift to electric vehicles.

EV100 is a global initiative, led by The Climate Group, bringing together forward looking companies committed to accelerating the transition to electric vehicles (EVs) and making electric transport the new normal by 2030.

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Reduce short-lived climate pollutant emissions

Tackling ‘short-lived climate pollutants’ (SLCPs) – including methane, black carbon, tropospheric ozone or hydrofluorocarbons (HFCs) – is vital to reduce near-term global warming and improve human well-being.

Businesses taking action to reduce these emissions can deliver rapid and measurable benefits in air quality, public health and food security whilst also boosting economic growth and making a key contribution to global climate change mitigation efforts.

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Grow the market for the world’s most sustainable fuels

Low-carbon fuels have huge potential for increasing fuel efficiency, reducing costs and cutting emissions. And the time for creating a global market for these fuels has never been better.

below50, brought to you by the World Business Council for Sustainable Development(WBCSD), aims to create demand for low-carbon fuels and scale up their deployment by increasing the number of companies choosing sustainable alternative fuels. This will create cross-sectoral opportunities along supply chains, while addressing legislative and financial barriers to bring these fuels into the mainstream.

below50 brings together companies and organizations who commit to growing the global market for the world’s most sustainable fuels – that is fuels producing at least 50% less CO² emissions than conventional fossil fuels.

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Put a price on carbon

A growing group of forward-looking companies are using an internal carbon price to help manage climate risk and align themselves with the low-carbon transition.

Internal carbon pricing can not only help companies effectively combat climate change and meet bold emissions reduction targets, but can also encourage innovation, drive down costs and help ensure sustained economic competitiveness.

Leading businesses recognize this and are building a carbon price into their operations and investment decisions, as an effective way to future-proof profitability and help shape the evolving regulatory framework.

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Remove commodity-driven deforestation from all supply chains by 2020

The commodities soy, palm oil, beef, timber and pulp are wealth generators that feature in the supply chains of companies across economic sectors. By leading the agenda on how these commodities can be sustainably produced, forward-looking businesses are driving innovation, competitiveness and growth.

Business has the power to alter global demand for the agricultural commodities that are the primary drivers of deforestation and forest degradation. And with deforestation accounting for approximately 15% of the world’s greenhouse gas emissions, the need for action has never been more urgent.

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Commit to responsible corporate engagement in climate policy

A supportive policy framework is vital to give business the backing it needs in the transition to a low-carbon economy. This is why forward-looking companies are actively ensuring their policy engagement on key climate issues is aligned, transparent, and consistent.

The “Guide for Responsible Corporate Engagement in Climate Policy” sets out a program of action for companies wishing to demonstrate best practice in policy engagement.