Last Updated on December 24, 2023 by News Editor
Massive investment is needed to combat climate change in the Middle East. A total of $230 billion is required annually across the Arab world to fulfill the Sustainable Development Goals. The private sector will make the lion’s share of this financing. However, Middle Eastern governments have considerable power to prepare and organize this funding and direct it toward sustainable development initiatives. Fighting the effects of global warming and climatic change requires a significant shift in every industry.
The Middle East will gradually switch over to renewable energy. Sustainable economic growth can only be achieved if the climate crisis and ecological damage are managed simultaneously. The shift towards a green economy looks to be in the hands of Saudi Arabia. KSA has a pipeline of 18 billion dollars worth of renewable energy projects, 13 billion dollars of which are either close to or have reached the tender phase.
The Middle East Is In The Spotlight
Middle Eastern governments have demonstrated commitment to follow through with their actions to encourage green investment. Industry watchers have noticed a surge in investments in the Middle East’s hydrogen generation, which suggests the area will become the primary source of fuel on a worldwide scale. There is a significant possibility of producing low-carbon blue hydrogen in addition to green hydrogen. The availability of cheap natural gas supplies and abandoned oil wells that may store carbon make the Middle East and North Africa (MENA) a prime location for the production of blue hydrogen.
Taking Advantage Of the Middle East’s Exceptional Opportunities
Some of the unique opportunities that the Middle East has have been related to the importance of state-owned firms and the size of sovereign wealth funds. Financial and social returns on investment are essential objectives of sovereign wealth funds. The GCC governments are establishing investment standards to guarantee this substantial capital investment is used to support a green transition while deprioritizing projects that worsen climate change. On the other hand, state-owned businesses contribute a sizeable share of the GDP of these nations. But, they also make up a disproportionate share of the region’s overall carbon dioxide emissions. Governments can combine efforts with these giant companies to invest in renewable energy and lower their carbon footprint.
Achieving Sustainability Requires Governments To Step Up
A fatal danger comes from climate change. Time is slipping away, so rapid developments are needed. Various structures and mechanisms must be implemented by Middle Eastern authorities to speed up the financial shift to a more sustainable and clean economy. The region will be on the track to sustainability if the government takes necessary actions by investing in green projects, creating employment opportunities, and assuring ongoing prosperity. In addition, developing detailed accountability in action plans, leveraging more funds to foster innovation, enhancing the design and implementation of green projects, and developing a human-centered strategy that considers the entire society is needed.