The Kingdom of Saudi Arabia is set to enhance its climate financing efforts through the introduction of the Green Finance Framework, a strategic move by the Ministry of Finance designed to accelerate the country’s sustainable development and commitment to a net-zero emissions target by the year 2060, as reported by the Saudi Press Agency.
This new framework is a significant step in Saudi Arabia’s journey towards reducing its carbon footprint. It supports a circular carbon economy model and establishes the country as a frontrunner in the realm of sustainable finance within the region.
Announced in October 2021, the country’s ambitious net-zero pledge involves a substantial reduction of its greenhouse gas emissions—by 278 million tonnes per year by 2030—thus adhering to the targets set by the Paris Agreement, which aims to cap the global temperature rise at 1.5 °C above pre-industrial levels.
The Saudi Green Initiative is among the multiple projects that underscore the nation’s dedication to mitigating climate change. This initiative was celebrated on March 27 as the inaugural Saudi Green Initiative Day, under the theme For Our Today and Their Tomorrow: KSA Together for a Greener Future
, emphasizing collaborative efforts in over 80 public and private sector projects.
The Kingdom has made tangible progress in its green efforts, having integrated 2.8 gigawatts of renewable energy into its national grid, which now powers upwards of 520,000 households. Ongoing projects are in place to further increase this capacity.
In its quest for a greener future, Saudi Arabia has also seen the planting of over 49 million trees and shrubs since 2021 and has committed to extensive land rehabilitation initiatives.
Additionally, in a partnership between Saudi Aramco and the Ministry of Energy, a carbon capture and storage hub is being developed in Jubail. Upon completion in 2027, this hub is expected to boast an annual storage capacity of 9 million tonnes, marking another milestone in the Kingdom’s environmental stewardship.