Saudi Arabia’s goal is to create a greener future for all by implementing the Circular Carbon Economy, investing in the green transition, increasing knowledge-transfer and collaboration, and activating public and private sector partnerships.
THE SAUDI GREEN INITIATIVE
Under the Saudi Green Initiative (SGI), Saudi Arabia is demonstrating that it is possible to responsibly transition to a more sustainable future, without compromising on economic development:
- The first wave of initiatives under SGI represent more than $186 billion (SAR 700bn)of investment in the green economy.
- The Public Investment Fund (PIF) successfully completed the world’s first green bond sale for a sovereign wealth fund in October 2022, issuing $3 billion in green bonds.
- PIF aims to grow its assets to more than $1 trillion by 2025 and expects to invest more than $10 billion by 2026 in eligible green projects, including renewable energy, clean transport and sustainable water management.
- 4 million tons of carbon credits were successfully auctioned at the voluntary carbon market initiative during the 2022 edition of FII.
- On 7 November 2022, HRH Crown Prince also announced that PIF will aim to reach net zero by 2050, the first sovereign wealth fund in the Middle East and one of the first globally to do so.
THE MIDDLE EAST GREEN INITIATIVE
Spearheaded by Saudi Arabia, the Middle East Green Initiative (MGI) will ensure far-reaching economic opportunities for the region. Sustainable development will spur economic diversification, create jobs, and boost private sector investment, benefiting future generations while forging a greener future:
- At the second MGI Summit on 7 November 2022, Saudi Arabia committed to contributing US$2.5 billion over the next 10 years in support of MGI projects and governance.
- Saudi Arabia is working alongside Middle East Green Initiative partner countries to establish a regional carbon capture, utilization, and sequestration hub.
- At the inaugural MGI Summit in 2021, Saudi Arabia announced a regional initiative for clean fuel solutions for cooking that will benefit more than 750 million people worldwide, and the establishment of a Regional Investment Fund for Circular Carbon Economy (CCE)technology solutions. The total investment in these two initiatives is approximately SAR 39 billion and the Kingdom will contribute to financing approximately 15% of it.