Saudi Arabia is aiming for net zero emissions

The Saudi Crown Prince declared on Saturday that the world's largest oil exporter wants to achieve net zero emissions of greenhouse gases by 2060 - ten years later than the United States, which are mainly produced by burning fossil fuels.

He also said the country will double the emissions reductions planned by 2030.

Crown Prince Mohammed bin Salman and his energy minister said Saudi Arabia will tackle climate change, but also stressed the continued importance of hydrocarbons and said the country will continue to ensure the stability of the oil market.

You spoke at the Saudi Green Initiative (SGI) in the run-up to COP26, the United Nations climate change conference in Glasgow at the end of the month, at which agreement is to be reached on a greater reduction in global emissions to combat global warming.

The United States, the world's second largest emitter, is committed to achieving net zero emissions by 2050, which means it doesn't emit more greenhouse gases than it can intercept or absorb. However, China and India, the world's largest and third largest emitters, have not committed to this schedule.

Amin Nasser, head of the state oil giant Saudi Aramco (SE: 2222), said it was counterproductive to "demonize" hydrocarbons. He said Aramco plans to expand its oil and gas production capabilities while achieving net zero emissions from its own operations by 2050.

He called for more global investment to ensure a sufficient supply of crude oil.

Prince Mohammed said in recorded remarks that the kingdom aims to achieve net zero emissions by 2060 as part of its program for a circular carbon economy, while maintaining its leadership role in strengthening the security and stability of global oil markets.

He said Saudi Arabia will join a global initiative that aims to cut methane emissions by 30% by 2030 from 2020 levels, which both the United States and the EU are pushing for.

United Nations Secretary-General Antonio Guterres welcomed the Kingdom's initiatives to reduce emissions in a telephone conversation with Saudi King Salman bin Abdulaziz, state media said. [L1N2RJ0FB]

HYDROCARBONS ARE CONTINUED TO BE NEEDED

The US climate commissioner John Kerry will attend a major environmental summit for the Middle East in Riyadh on Monday.

The SGI aims to avoid 278 million tonnes of carbon dioxide emissions per year by 2030, up from a previous target of 130 million tonnes. The Crown Prince said the SGI initiative will include investments of over 700 billion riyals ($ 190 billion) over this period.

Saudi Arabia's economy remains heavily dependent on oil, despite the Crown Prince trying to encourage diversification.

Energy Minister Prince Abdulaziz bin Salman said the world needs both fossil fuels and renewable energies.

"It has to be a comprehensive solution," he said. "We have to get everyone involved, and that assumes we are open to the efforts of others as long as they reduce emissions.

He said the young generation in the kingdom will not wait for us to change their future ".

He said net zero emissions could be achieved before 2060 but the kingdom needed time to "get things right".

Another Gulf oil producer, the United Arab Emirates, announced this month a plan for net-zero emissions by 2050.

The non-profit consortium Climate Action Tracker gives Saudi Arabia the lowest possible rating: "Critically inadequate".

The first renewable energy facility in Saudi Arabia opened in April, and the country's first wind farm started operations in August.

However, Saudi Arabia plans to build a $ 5 billion facility to produce hydrogen, a clean fuel, and government-run companies are focused on green fundraising.

($ 1 = 3.7507 riyals)