Why the GCC’s oil-rich nations are considering an energy transition in their long-term objectives – ArabianBusiness

Why the GCC’s oil-rich nations are considering an energy transition in their long-term objectives – ArabianBusiness

Energy players in the Gulf Cooperation Council (GCC) nations, namely oil and gas and chemical companies, are unlikely to meaningfully adjust their strategies and spending in the next five years, despite a greater focus on environmental targets in the region, according to a recent report published by S&P Global Ratings.

The report states that the slower spending pace stems largely from regional energy companies being significantly more shielded than global peers’ to energy transition risks as well as the currently lower returns on green and renewable projects.

Some GCC countries, notably the UAE, Saudi Arabia, and Bahrain, have announced commitments to net-zero carbon emissions. To achieve net zero, the governments would need to ensure that any carbon dioxide released into the atmosphere from domestic corporate activities is offset by an equivalent amount being removed.