22 Jun 2024
RIYADH: Saudi Arabia has secured the third position among the Gulf nations in a global Energy Transition Index, according to the latest findings released by the World Economic Forum.
The report, titled “Fostering Effective Energy Transition 2024,” evaluated 120 countries based on their energy systems’ performance, emphasizing equity, environmental sustainability, energy security, and transition readiness.
Saudi Arabia achieved the 58th position overall with an ETI score of 55.9 and a transition-readiness score of 45.4.
The latter figure is rooted in various factors, including the stability of the policy environment, the level of political commitment, and the investment climate, as well as access to capital, consumer engagement, and the development and adoption of new technologies.
The rankings reflect the Kingdom’s progress in balancing its energy reserves with sustainability goals amidst global economic volatility and technological advancements.
Countries worldwide are overhauling their energy systems in response to global commitments, such as the 2015 Paris Agreement, and decisions made at events like COP28, which concluded in Dubai last December.
In recent years, GCC nations have announced ambitious national goals and regional initiatives to combat climate change. The UAE and Oman have committed to achieving Net Zero by 2050, while Saudi Arabia is aiming for that goal by 2060 and has launched the Middle East Green Initiative.
Qatar led the Gulf Cooperation Council states in the Energy Transition Index, ranking 50th with a score of 57.3. The UAE followed with a ranking of 52 and an ETI score of 57.
Oman was placed 62nd, while Bahrain and Kuwait secured the 103rd and the 104th positions respectively.
The report emphasized the urgent need for nations to reform their energy systems, scale up clean energy solutions, and enhance efficiency to achieve sustainable global transitions.
It highlighted that while progress has been made, challenges such as geopolitical tensions continue to impact the trajectory of this transformation.
“The global landscape is marked by economic volatility, heightened geopolitical tensions, and technological shifts. This uncertainty is reflected in the ETI, where the rate of improvement over the past three years has decreased,” the report noted.
Leading countries in the ETI rankings for 2024 are predominantly European, with Sweden and Denmark securing top positions owing to their robust policy frameworks, investments in clean energy, and technological innovation, according to the document.
The disparity in ETI scores between advanced and developing economies has diminished, with a noticeable shift in the center of gravity of the energy transition toward developing nations. Despite this progress, investment in clean energy continued to be heavily concentrated in advanced economies and China.
The report emphasized the critical necessity for financial support from advanced nations to facilitate a fair energy transition in emerging and developing countries.
“Global average Energy Transition Index scores reached their highest levels, with 107 out of 120 countries making progress over the past decade,” the report said.
As countries worldwide strive toward sustainable energy futures, the report called for concerted efforts in policy-making: “The message from this year’s ETI is clear: there is no time to waste. Decision-makers across the globe must act decisively and collaboratively to accelerate the transition towards an equitable, secure and sustainable energy future.”
Saudi Arabia is emerging as a proactive leader in energy transition policies, he International Monetary Fund said in a report in March, as the Kingdom is pioneering green initiatives to mitigate economic challenges posed by the transformation toward sustainability.
The study emphasized that the Saudi Green Initiative, launched in 2021, aims to combat climate change and reduce carbon emissions.
It explained: “The Green Initiative is centered around three objectives, including targets for increasing the share of renewable energy in electricity generation up to 50 percent by 2030 and the deployment of circular carbon economy technologies, including carbon capture utilization and storage.”