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Saudi Arabia targets net GHG cuts of 335mn t/yr by 2040

  • Market: Crude oil, Electricity, Emissions
  • 06/01/26

Saudi Arabia has put forward a target to "reduce, avoid, and remove" greenhouse gas (GHG) emissions of 335mn t/CO2 equivalent (CO2e) annually over 2030-40, from a 2019 baseline.

This will be reached "through a combination of GHG and non-GHG metrics", the country said in its latest nationally determined contribution (NDC) climate plan under the Paris climate agreement.

Non-GHG metrics include renewable energy capacity additions, afforestation, land restoration and initiatives to combat desertification, according to the NDC. Under its renewable energy scheme, Saudi Arabia has connected 12.3GW of renewable capacity to the grid, with 10.7GW under construction and 34.5GW under various stages of development, the plan said.

Saudi Arabia based this NDC on a scenario of "economic diversification with a robust contribution based on income from hydrocarbon and its derivatives' export revenues", it said. It is the second-biggest oil producer globally, with vast reserves. Saudi Arabia plans to reach its emissions targets by improving energy efficiency and methane management, and by deploying carbon capture, use and storage (CCUS), "clean hydrogen" and "lower carbon aviation fuel", it said.

Saudi Arabia is vulnerable to the effects of climate change, with "extremely high summer temperatures, very low annual rainfall, predominantly non-arable land, and a heavy reliance on deep confined groundwater resources", the plan noted. Water scarcity is one of the "most pressing concerns", it said.

The NDC references Saudi Arabia's status as a developing country under UNFCCC classification, but notes the plan is not contingent on international financial support. Developing countries, as designated by the UNFCCC using lists from 1992 when the body was established, are eligible to receive finance from developed nations to help implement climate plans.

The Saudi NDC also took aim at the EU's corporate sustainability due diligence directive (CSDDD) and carbon border adjustment mechanisms (CBAM). The EU's CBAM entered into force this year, and aims to spur lower-emissions industrial production in non-EU countries. The CSDDD will require companies operating in the EU to adhere to address human rights and environmental impacts across their value chains and operations.

"These unilateral trade measures distort investment signals and affect the competitiveness and continuity of mitigation activities", Saudi Arabia said. CBAM has proved contentious at Cop climate summits, and the issue of unilateral trade measures was discussed at Cop 30 in November 2025.

Saudi Arabia's NDC represents more ambition than its previous plan in 2021, which aimed to reduce, avoid or remove GHG emissions of 278mn t/CO2e annually by 2030, from the same baseline of 2019.

Countries that are signatories to the Paris agreement are required to submit NDCs every five years, encompassing increased climate ambition each time. The latest round of plans — requested by the UN for submission in February 2025 — were to map out countries' plans to 2035.


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