Saudi Arabia Leading Clean-energy Revolution With $180bn For Green Economy, Climate Tech: Agility

RIYADH: Saudi Arabia is accelerating its leadership in sustainability, committing over $180 billion to a green economy while driving innovation in climate technologies, according to a new report.

According to an analysis by Agility, the Kingdom has become a dominant force in environmental solutions, accounting for 75 percent of climate technology investments in the Middle East.

The nation’s efforts include advancements in renewable energy, circular economy initiatives, and climate adaptation, solidifying its regional and global leadership.

The analysis commends the Kingdom’s policymakers for their ambitious targets under the Saudi Green Initiative and Vision 2030. NEOM, the mega-city development, is set to run entirely on renewable energy, illustrating this commitment, the report stated.

This comes as Saudi Arabia addresses significant environmental challenges, with 95 percent of its territory classified as desert and much of its habitable land at risk of degradation.

“Saudi Arabia has moved to the forefront of the clean-energy revolution and the drive to innovate and find answers to the global climate challenge. Very few countries can match its determination or its record of investment and leadership in sustainability,” Tarek Sultan, vice chairman of Agility, said.

Projections warn of more frequent droughts, prolonged heat waves, and economic strain if emissions are not curtailed. These factors underscore the importance of the Kingdom’s climate adaptation and mitigation efforts.

The report identifies further priorities, including accelerating renewable energy projects, enhancing corporate resource efficiency, expanding public transport, and improving air quality.

Key undertakings include connecting 2.8 gigawatts of renewable energy to the national grid and achieving renewable power generation goals for over 520,000 homes.

Saudi Arabia also aims to lead the global hydrogen market, targeting 4 million tonnes of green hydrogen production annually by 2035, with NEOM hosting the world’s largest hydrogen plant.

While businesses trail policymakers in adapting sustainability measures, the report reveals promising signs.

More than half of surveyed Saudi executives plan to adopt green technologies, and 54 percent of companies have allocated at least 5 percent of capital expenditure toward sustainability.

The report positions the Kingdom as a regional powerhouse and a potential global benchmark for sustainable practices.