Energy transition in Saudi Arabia: Giant leap or necessary adjustment for a large carbon economy?

Abstract

Since 2016 and guided by the National Vision 2030, the energy transition in Saudi Arabia has gained significant momentum. There have been important energy subsidy reforms and dynamic developments in the renewable energy sector. This paper provides a systematic view of the Saudi energy transition by highlighting drivers, sectors, targets and processes. It analyzes the progress with regard to lowering carbon emissions and consumption, as well as introducing ambitious new targets and solar energy projects. The energy subsidy reforms have delivered the needed funds for the energy transition and allowed for more participation in the energy markets. Other aspects of the energy transition included low-carbon urban developments and energy efficiency measures in the building sectors. Besides, key energy-intensive industries such as petrochemicals and desalination are incorporating renewables and facilitating the use of clean energy. Overall, the Saudi energy transition is underway, and it holds significant and necessary adjustments to the most important economy in the Middle East region. It needs to be complemented by environmental awareness and sustainable lifestyles. Reforming the large carbon economy of Saudi Arabia towards more sustainability and environmental responsibility can have positive spillovers and powerful messages about the future of carbon-fuel exporting states.