Written in collaboration with the World Government Summit.
Launched in 2021, Oliver Wyman Climate Action Navigator reveals that global emissions must decrease by half this decade to avoid irreversible heat rises across the globe. Middle Eastern countries, in particular, face significant challenges in reducing emissions in sectors that are structurally difficult to decarbonize due to their high reliance on industrial and refining activities. In addition, subsidies on energy prices encourage consumption and have created a cost advantage for industrial development, which is hard to phase out.
Adding to this complexity is the high cost of transition to green systems, mainly driven by limited know-how and the availability and accessibility to technology that can support the shift towards green sources. In addition, the tightening global investment climate, global decline of FDI flow, and fiscal and monetary policy tightening to curb inflation have created significant challenges in securing investments in green energy.
This report explores sustainable policies and climate actions that Middle Eastern countries can take to achieve those targets. Leveraging the Oliver Wyman Climate Action Navigator, we analyze data and success stories to inform policy and decision-makers for solutions and tools relevant to the Middle East region. Our analysis shows that Middle Eastern countries will need to gradually transition to a net zero future without damaging regional economic growth and impacting an economy that is still heavily reliant on oil and hydrocarbons.
We examine policies and actions across five main categories: Integrating Carbon Capture Storage (CCS) and Carbon Capture Usage (CCU) technologies in energy and industrial sectors, reducing emissions from building heating and cooling, scaling-up low-emission power generation, target emissions in logistics and transport, and increasing energy efficiency for industrial processes. The report also examines principles and guidelines that can be applied across those actions to achieve a robust, gradual, and sustainable transition while considering the region's economic, social and fiscal structure.