Saudi Arabia Takes Steps Towards Environmental Sustainability: COP16 and National Green Initiatives

As the Kingdom of Saudi Arabia embraces a future of environmental sustainability, it has unveiled significant moves to tackle climate change and land degradation. The establishment of the first national sustainability committee, alongside the hosting of COP16 at Riyadh, marks key moments for the country’s green transformation.

Saudi Arabia announces first national sustainability committee to drive a green economy

On December 8, the Federation of Saudi Chambers announced the formation of the Kingdom’s inaugural sustainability committee, aimed at driving a green economy. Khaled bin Abdulrahman Al-Othman has been appointed chairman, and Nouf bint Abdulaziz Al-Ghamdi as vice-chairman. The committee’s formation is seen as an important step in integrating environmentally forward business practices and policies into the nation’s economic framework.

Saudi Arabia has been proactive in addressing environmental challenges, many of which are shared globally, including those stemming from rapid industrialization and population growth. The country has made substantial progress through its Saudi Green Initiative (SGI), which was launched in 2021. The SGI includes ambitious goals such as reducing carbon emissions, planting 10 billion trees, and protecting 30 percent of the country’s land and marine areas. With US$188-billion-worth investments in over 80 projects, Saudi Arabia is steadily progressing towards creating a sustainable and green economy.

The Kingdom is also making strides to become the world’s leading producer and exporter of clean hydrogen. Through the production of 4 million tonnes of clean hydrogen, Saudi Arabia plans to sequester 27 million tonnes of CO2 annually, demonstrating its commitment to achieving climate neutrality. Furthermore, the Kingdom has connected 1.3 gigawatts of renewable energy to the national grid in the past year, expanding its total renewable energy capacity to 4.1 gigawatts.

Hosting COP16

On the global stage, Saudi Arabia’s leadership extends to the ongoing COP16 conference, being hosted in Riyadh from December 2–13, 2024. The 16th session of the United Nations Convention to Combat Desertification (UNCCD) is focused on addressing desertification, land degradation, and drought through strategies aimed at achieving Land Degradation Neutrality (LDN). This year’s conference, hosted for the first time in the MENA region, underscores Saudi Arabia’s leadership in environmental sustainability and economic diversification.

The conference brings together countries, scientists, and private sector leaders to discuss land restoration and climate resilience. Dr. Osama Faqeeha, Deputy Minister for Environment, Water, and Agriculture, emphasized the importance of global action to prevent land degradation, which has profound implications on food security and livelihoods, especially in developing nations. COP16’s agenda includes discussions on the Global Drought Agenda, land tenure issues, and gender equality in land governance, and highlight Saudi Arabia’s role in supporting sustainable land management and social equity.

Saudi Arabia’s ambitious environmental initiatives align with international climate agreements such as the Paris Agreement and its own Saudi Green and Middle East Green Initiatives. These efforts are integral to the Kingdom’s broader economic diversification goals and its commitment to environmental stewardship in the face of the climate crisis.

With both national and international efforts aligned, Saudi Arabia is setting an example of how nations can combine environmental sustainability with economic growth. The Kingdom’s investments in renewable energy, clean technologies, and land restoration offer a model for other countries grappling with the impacts of climate change and land degradation.

Sustainability investment prospects in Saudi Arabia

Saudi Arabia offers numerous business and commercial opportunities for foreign investors, especially as the Kingdom undergoes a transformative shift towards sustainability, diversification, and modernization. Below are key sectors where foreign investment is encouraged:

Renewable energy and clean technologies

• Solar power and wind energy: With Saudi Arabia’s ambitious renewable energy goals, including generating 50 percent of its electricity from renewable sources by 2030, there are ample opportunities in solar and wind power generation, including the manufacturing of components like solar panels and turbines.
• Hydrogen production: The country is aiming to become the world’s largest producer of clean hydrogen. Foreign investors can explore opportunities in hydrogen infrastructure, including production, storage, and distribution technologies, especially as the Kingdom focuses on carbon capture and storage technologies.
• Energy storage and efficiency solutions: As the Kingdom diversifies its energy sources, there will be high demand for energy storage systems, energy efficiency technologies, and innovations in grid management.

Sustainable infrastructure and green building

• Eco-friendly construction projects: The push for a sustainable future translates into large-scale infrastructure projects, including green buildings, smart cities, and eco-friendly urban development. There are significant opportunities in construction, building materials, and architectural services that prioritize energy efficiency and sustainability.
• Waste management and recycling: The Kingdom is aiming to reduce waste and increase recycling rates, creating business prospects for waste management, recycling, and waste-to-energy technologies.

Water management and desalination

• Water desalination and treatment technologies: Given the arid climate, there is an ongoing need for advanced water desalination, purification, and wastewater treatment technologies. Opportunities exist for foreign companies to bring in expertise in water resource management, particularly in desalination plants and technologies for water reuse.
• Water conservation solutions: Technologies and services that help conserve water and improve efficiency in agriculture and industrial sectors are in high demand.

Agriculture and food security

• Sustainable agriculture: With land degradation and water scarcity being critical concerns, Saudi Arabia is turning to sustainable agricultural practices. There are opportunities for foreign investors in areas like vertical farming, hydroponics, and aquaculture, especially in the context of reducing the Kingdom’s reliance on food imports.
• Food processing and packaging: As Saudi Arabia seeks to increase local food production, there is a growing need for food processing, packaging, and storage solutions, including innovations in food safety and preservation.

Key considerations for foreign investors

• Regulatory environment: The Saudi government offers a range of incentives for foreign investors, including 100 percent foreign ownership in specific sectors and improved legal frameworks for business establishment.
• Partnerships with local firms: Many sectors encourage joint ventures or partnerships with local businesses, especially in areas such as manufacturing and retail.
• Investment incentives: The Saudi Arabian General Investment Authority (SAGIA) offers attractive incentives, including tax exemptions and exemptions from local hiring quotas for foreign firms.

Overall, Saudi Arabia presents a wealth of business and commercial opportunities, particularly in the context of Vision 2030, which emphasizes economic diversification, sustainability, and technological advancement.

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