Saudi Aramco to achieve net zero emissions by 2060

Highlights

  • Energy giant Saudi Aramco has set its aims on net-zero emissions.
  • Saudi Arabia, the world's top crude exporter, is joining the global drive.
  • Aramco believes 'demonising' hydrocarbons may not be enough for stable energy supplies.

Saudi Arabian energy giant Saudi Aramco has set its net zero emissions target to 2060. On Saturday, Aramco chief Amin Nasser declared that the energy major aims to reduce emissions from operations by 2050. The news was shared at the Saudi Green Initiative summit, following the kingdom's declaration to achieve zero carbon emissions by 2060.

With this move, Saudi Arabia, the world's top crude exporter, is joining the global drive to cut methane emissions by 30 per cent by 2030. The Gulf Arab state is aiming to achieve a net-zero level by 2060.

What inspired Aramco for zero emissions target?

In May, the world's topmost energy Organisation, International Energy Agency (IEA), had chosen 2050 as its Net Zero target year. It even asked energy investors to stop funding new conventional energy supply projects (oil, gas, and coal supply) beyond the target year.

The 2021 U.N. climate summit is lined up at the end of October, and the IEA wants investment in renewable energy to triple by the end of this decade. As the world hopes to fight climate change and keep energy market volatility under control, the world's top oil producer, Saudi Arabia, has joined the suit. It aims to reach the net-zero emissions level by 2060, joining over 100 countries in the global effort to curb climate change.

Saudi Aramco to achieve net zero emissions by 2060

Crown Prince Mohammed bin Salman made his remarks kingdom’s climate move at it’s first-ever Saudi Green Initiative Forum. It comes just a week before the global COP26 climate conference is being held in Glasgow, Scotland. The kingdom is taking over a so-called 'Carbon Circular Economy' approach for itself. However, oil and gas exports form the backbone of its economy. So, the efforts do not impact its continued aggressive investment in fuels export.

The UAE has not announced specifics on how it will reach this target but aims to work with energy, economy, industry, and other sectors to achieve the net-zero target by 2050.

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As for Aramco, Saudi Arabia's energy major, it feels that the global spare capacity of crude is reducing fast, and there is a need for more investment. It still believes that 'demonising' the hydrocarbon industry will be counterproductive to stable energy supplies worldwide. However, the investment in gas would allow Aramco to eliminate major liquid burning and emissions for the kingdom.

Bottom line

Aramco, with this announcement, aims to contribute to the orderly energy transition. It shall have a parallel focus on existing and new energy sources. In recent weeks, energy shortages have engulfed Asia, Europe, and America. Thus, Aramco seeks global economies' support to ensure adequate crude spare capacity as the world emerges from COVID-19.

Also Read: ASX energy stocks to look amid rise in oil prices

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