Saudi Arabia’s substantial investment in green energy, innovation, climate resilience, and the renewal of natural resources is positioning the country to establish new sustainability standards both regionally and globally, according to a recent report by Agility on its extensive environmental agenda.
KEY DEVELOPMENTS
- Emerging Leader in Green Technology: Saudi Arabia accounts for 75% of the Middle East's investment in climate tech startups, committing over $180 billion to cultivate a robust “green economy.”
- Pioneering Global Hydrogen Initiatives: By 2035, the Kingdom aims to produce 4 million tons of green hydrogen annually. Its NEOM mega-city, currently under construction, will host the world’s largest green hydrogen plant, valued at $8.4 billion.
- Sustainable Infrastructure Development: Projects like NEOM are designed to operate entirely on renewable energy.
- Meeting Sustainability Goals: The country is on track to achieve or surpass most targets set in its Saudi Green Initiative and the sustainability objectives outlined in its Vision 2030 strategy.
As part of the Saudi Green Initiative, the Kingdom has connected 2.8 GW of renewable energy to its grid, aiming for renewables to supply 50% of its power capacity by 2035.
With 95% of its land classified as desert, Saudi Arabia faces challenges in maintaining habitable and productive environments. The report emphasizes the Kingdom's climate change mitigation efforts, which include planting over 49 million trees, rehabilitating agricultural areas, protecting marine ecosystems, and promoting sustainable land management.
The report also notes the difficulties Saudi Arabia faces in transitioning from its historical dependence on hydrocarbons to a more sustainable future, suggesting areas for improvement and acceleration, such as:
- Speeding up renewable energy projects
- Providing businesses with greater incentives for resource efficiency
- Expanding public transportation options
- Enhancing air quality
This report builds on Agility’s Middle East and Africa Environmental Sustainability Scorecard released last November, which evaluated the environmental sustainability performance of 17 countries in the region.
Agility Vice Chairman Tarek Sultan stated, “Saudi Arabia has positioned itself at the forefront of the clean-energy revolution and is actively seeking solutions to the global climate challenge. Few nations can match its commitment and investment in sustainability.”
Both the report and the 2023 Scorecard were commissioned by Agility, a global company specializing in supply chain services and infrastructure, and compiled by Horizon Group, an independent research and analysis firm.
Horizon’s findings indicate that while policymakers in Saudi Arabia are advancing sustainability efforts, a significant gap remains with businesses. A survey for the 2023 Scorecard revealed that only 28% of executives view climate change as a major business concern. Nevertheless, many are preparing for the future: 54% of Saudi executives reported their companies are planning to adopt new green technologies, and half indicated that at least 5% of their capital expenditure is allocated to environmental sustainability initiatives.--OGN