Saudi Arabia Accelerates Shift to Modern Transport for Carbon Emission Reduction

Saudi Arabia is driving a major shift in the transportation sector to address the rising challenges of climate change.  (AFP)
Saudi Arabia is driving a major shift in the transportation sector to address the rising challenges of climate change. (AFP)
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Saudi Arabia Accelerates Shift to Modern Transport for Carbon Emission Reduction

Saudi Arabia is driving a major shift in the transportation sector to address the rising challenges of climate change.  (AFP)
Saudi Arabia is driving a major shift in the transportation sector to address the rising challenges of climate change. (AFP)

Saudi Arabia is driving a major shift in the transportation sector to address the rising challenges of climate change.

The Kingdom’s plans in this area are crucial to the global effort to reduce carbon emissions by 4%, focusing on exploring modern transportation alternatives.

Experts in energy and logistics applaud Saudi Arabia for proactively aligning with global climate change trends.

The country has been a pioneer in reducing the environmental impact of traditional fuel-based transportation, leading international efforts in developing the hydrogen industry and the launch of the Green Saudi and Green Middle East eco-friendly initiatives.

Efforts to cut fuel consumption in transportation face significant challenges, and Saudi Arabia is emphasizing diverse solutions that benefit the global economy without harming fuel-producing nations.

According to research from the King Abdullah Petroleum Studies and Research Center, sustained policies to improve efficiency could reduce the Kingdom’s annual transportation emissions growth from 7% to 3% by 2030.

Speaking to Asharq Al-Awsat, Dr. Mohammed Suroor Al-Sabban, former Chief Advisor of the Saudi Ministry of Energy, stressed that while the shift to alternatives like electric vehicles is positive, it cannot completely replace traditional fuel or oil in transportation, especially in aviation and maritime sectors.

He highlighted the need for varied efforts that benefit both the global economy and the climate and avoiding a narrow position that damages fossil fuel and oil-producing economies.

Al-Sabban underlined Saudi Arabia’s leadership in climate change initiatives, actively participating in the development of renewable energy sources and carbon removal from oil.

The country continues to lead international efforts in hydrogen industry development and environmental projects, contributing to global climate change solutions.

He also noted that some Western concerns about climate change are exaggerated, aiming to minimize global oil consumption.

However, Al-Sabban emphasized that the consumption will persist for many decades, as fossil fuels still make up 80% of the world’s total energy use.



Moody's Upgrades Saudi Arabia's Credit Rating

Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
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Moody's Upgrades Saudi Arabia's Credit Rating

Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters

The credit rating agency “Moody’s Ratings” upgraded Saudi Arabia’s credit rating to “Aa3” in local and foreign currency, with a “stable” outlook.
The agency indicated in its report that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification and the robust growth of its non-oil sector. Over time, the advancements are expected to reduce Saudi Arabia’s exposure to oil market developments and long-term carbon transition on its economy and public finances.
The agency commended the Kingdom's financial planning within the fiscal space, emphasizing its commitment to prioritizing expenditure and enhancing the spending efficiency. Additionally, the government’s ongoing efforts to utilize available fiscal resources to diversify the economic base through transformative spending were highlighted as instrumental in supporting the sustainable development of the Kingdom's non-oil economy and maintaining a strong fiscal position.
In its report, the agency noted that the planning and commitment underpin its projection of a relatively stable fiscal deficit, which could range between 2%-3% of gross domestic product (GDP).
Moody's expected that the non-oil private-sector GDP of Saudi Arabia will expand by 4-5% in the coming years, positioning it among the highest in the Gulf Cooperation Council (GCC) region, an indication of continued progress in the diversification efforts reducing the Kingdom’s exposure to oil market developments.
In recent years, the Kingdom achieved multiple credit rating upgrades from global rating agencies. These advancements reflect the Kingdom's ongoing efforts toward economic transformation, supported by structural reforms and the adoption of fiscal policies that promote financial sustainability, enhance financial planning efficiency, and reinforce the Kingdom's strong and resilient fiscal position.