Reflecting on COP27: The Development of Saudi Arabia’s Climate Policy
Over the last few decades, the Kingdom of Saudi Arabia has radically remodeled their approach to climate change and sustainable development policy. However, there is still widespread skepticism regarding the effectiveness of the country’s proposed climate policies. As a major international producer and supplier of oil and one of the largest net exporters of petroleum, Saudi Arabia has a demonstrated history of contributing to CO2 emissions and global climate change. In the 1990s, Saudi Arabia was an avid denier of human-induced climate change and consistently blocked action on the issue. The country’s representatives on the International Panel for Climate Change (IPCC) questioned the scientific validity of climate change, with delegates hoping to weaken statements on the extent and gravity of climate change.
After a history of poor climate policy, Saudi Arabia has made seemingly impressive strides in developing and financing new climate goals, sustainable infrastructure, and actionable climate policy. Days before the 2021 COP26 summit in Glasgow, Saudi Arabia’s Crown Prince Mohammed bin Salman announced the country’s net-zero target for 2060, joining over a hundred other countries that have committed to net zero emissions. This marked a major turning point in Saudi attitudes towards climate change. Net-zero emissions – or carbon neutrality — balances the amount of emissions produced and the amount removed from the atmosphere. However, while this may appear to be a sizable feat for one of the world’s largest oil exporters, it must be noted that the net zero goals only refer to domestic emissions; the country may continue to export fossil fuels to other nations without contributing to Saudi Arabia’s net-zero goals. Prior to a 2021 climate conference held in Riyadh, Prince Mohammed bin Salman stated that the country would achieve its goals without disrupting the "stability of global energy markets.” Reports that aligned with the activities of COP26 also suggested that Saudi Arabia was among the countries that had watered down a recommendation on phasing out fossil-fuel subsidies.
In order to achieve net-zero emissions, Saudi Arabia’s Energy Minister Abdulaziz bin Salman said the country would use carbon capture technology to extract CO2 from the air. Saudi Arabia’s State-owned oil giant Aramco plans to build the world’s biggest carbon capture and storage hub by 2027, which is projected to store up to nine million tons of carbon dioxide. This claim brought about skepticism from the international community; as carbon-capture and storage technology is not yet developed to the point where it may be regarded as a realistic option. Experts in the field of carbon capture and storage technology believe this move may delay more meaningful and effective methods of climate change mitigation and adaptation, such as moving away from fossil fuels.
In response to cynicism surrounding Saudi Arabia’s use of carbon-capture technologies, Prince Mohammed bin Salman stated in 2021 that the country will shift to renewable energy and plant billions of trees to offset carbon emissions. The country launched the Saudi Green Initiative (SGI), promising to plant 10 billion trees and 40 million acres of land by 2060. As of December 2022, over 8.4 million trees have been planted under the SGI. The country has also greatly increased investments in renewable energy– particularly solar power– investing around $1.5 billion in solar energy alone over the last year. Thus far, the Saudi government has invested approximately $186 billion through the initiative.Gulf states have tremendous access to solar radiation, giving Saudi Arabia a competitive advantage in harnessing renewable solar energy. The cost of electricity from renewables in the Middle East has dropped to as low as $0.01 per kilowatt hour, compared with a world average in 2021 of around $0.05 for solar projects and 3 cents for onshore wind. According to Francesco La Camera, the director-general of the International Renewable Energy Agency, this is a “tremendously competitive price.”
Saudi Arabia is also relying on this low cost to advance their green hydrogen industry. Green hydrogen is a fuel made by using renewable electricity to split water into hydrogen and oxygen. Saudi Arabian representatives have an ambitious goal to become the world’s leading producer and exporter of hydrogen by 2030. They plan on achieving this by constructing a zero-carbon city called ‘Neom’ This futuristic desert city project in Saudi Arabia’s northwest Tabuk region is expected to open to the public in 2024, housing over nine million people and running on 100 percent renewable energy. 95 percent of Neom’s land will be preserved for nature alone. Neom will also run without cars, contributing to the city’s net-zero emissions goal. Neom’s Green Hydrogen Company is set to establish the world’s largest green-hydrogen-based ammonia production facility that runs on renewable energy. This ambitious facility is estimated to produce up to 600 tons of carbon-free hydrogen per day.
At COP27, which was held in Sharm el-Sheikh, Egypt in November of 2022, Saudi Arabia provided updates on their proposed green initiative. The country displayed their progress at an SGI exhibition, exploring the work done by Neom’s Green Hydrogen Company alongside afforestation efforts, carbon capture technology¸ and wildlife resettlement programs.
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