Saudi green initiatives offer practical steps toward energy transition

Saudi green initiatives offer practical steps toward energy transition

The Saudi and Middle East green initiatives have certainly captured global headlines, especially the Kingdom’s commitment to become a net zero carbon emission producer by 2060. The recent Riyadh forum gathered together a global who’s who of policymakers including several heads of state, with key speakers such as Crown Prince Mohammed bin Salman, US Special Presidential Envoy for Climate John Kerry, UN Deputy Secretary-General Amina Mohammed, BlackRock Chief Executive Officer Larry Fink, HSBC Group CEO Noel Quinn, and BTG Pactual Senior Partner Andre Esteves. At the same time, the Kingdom has been advising some realism noting that a sharp reduction in the use of fossil fuel without a meaningful and commercially viable alternative energy was not realistic. While there are many encouraging signs regarding the drive for green energy, a complete retreat from financing fossil fuels will also take time.

UN secretary-general, Antonio Guterres, for example, has called on international lending agencies to stop funding fossil fuel projects. Central banks are also on the case. Many are going to impose climate stress tests to try to ensure that bank balance sheets reflect the risks of climate change. Clients, too, want to at least look green — and many are trying to