Climate Action
Saudi Arabia’s economic growth is intricately linked to the power sector, with the Ministry of Energy making key investments in power and renewable energy projects. This trajectory includes strategic investments in green hydrogen manufacturing, transport electrification, expansion in traditional sectors like petrochemicals, and rapid urbanization.1 While the sector does contribute to GHG emissions, it stands as an equal key player in climate change mitigation through efforts in emissions reduction. In line with this, the Kingdom has set a vision for a green energy transition to accelerate climate action through the Saudi Green Initiative (SGI).2
SEC aligns seamlessly with the national agenda on climate change, taking the lead in transformative initiatives. The company is at the forefront of vital projects, such as interconnecting renewables to the electricity grid, developing cryogenic carbon capture technology, implementing carbon capture in Green Duba power plant, and adopting smart grid technology, contributing significantly to decarbonization efforts. Demonstrating steadfast dedication, SEC recently announced at the COP 28 its ambition to achieve Net Zero emissions by 2050.3 This aligns with the SGI’s vision and reinforces SEC’s role as a key player in advancing the Kingdom’s sustainability goals. To realize its Net Zero ambition, SEC formulated a robust ESG strategy, endorsed by the Board in 2023. Through extensive collaboration with its business lines, the company delineated ESG strategic objectives, key initiatives, and a 3-year roadmap, epitomizing a thorough and purpose-driven approach to sustainable and responsible practices.
SEC’s ESG Strategy revolves around three primary objectives to address climate change. Firstly, it aims to enhance climate resilience by identifying related risks and opportunities and developing precise mitigation plans for business continuity. Secondly, the strategy focuses on decarbonization through improved GHG inventory management, investments in carbon capture technology, optimized operational energy efficiency, and aligned with the Kingdom’s Liquid Fuel Displacement Program (LFDP).4 Lastly, it seeks to expedite the interconnection of renewable projects with the transmission grid, establishment of solar PV capacity for self-consumption, setting up of electric vehicle charging infrastructure, and promotion of distributed generation. Furthermore, SEC actively drives climate action by forging strategic alliances, partnerships, and MOUs with academia, government institutions, and technology providers.
2050
Net-Zero Ambition
Take decarbonization action to deliver net-zero ambition
Accelerate renewable energy adoption and integration
Take decarbonization action to deliver net-zero ambition
Natural Gas Installed Capacity
Oil Fired Installed Capacity
Solar and Wind Installed Capacity
Spotlight:
Decarbonization Pathway
SEC’s approach to building a decarbonization pathway involves meticulous integration of technological, economic, and strategic considerations. Leveraging MACC analysis, aligning investments with abatement potential, and addressing key enablers and risks are central to this comprehensive strategy.
This case study portrays how SEC plans to build the decarbonization pathway for progressing towards its ambition of achieving Net Zero emissions by 2050
SEC developed 4 scenarios of potential future energy mix required to achieve Net Zero ambition by 2050
Each scenario was analyzed to draw the Scope 1 and 2 emissions profile along with the projected carbon intensity until 2050
Marginal Abatement Cost Curves were leveraged to quantify the yearly abatement potential of the proposed solutions and build the investment roadmap for establishing solar and wind capacity by 2050
Recognizing the complexity of the decarbonization journey, SEC undertook risk assessment to identify challenges and frame corresponding mitigation measures to ensure the resilience of the net-zero pathway
Climate Risks & Opportunities
GHG Emissions
Renewable Energy
Operational Energy Efficiency
Demand-side Management
Discover more about SEC climate action
