Saudi Arabia’s climate strategy is now more focused on green mega projects and hydrogen investments. Crown Prince Mohammed bin Salman’s leadership since 2017 has pushed the country towards sustainability and diversification away from oil, chiefly through Vision 2030.
This initiative includes the NEOM megacity project, which promises to host the world’s largest green hydrogen plant, though human rights abuses and detailed plans for full carbon neutrality remain concerns.
Saudi Arabia was once known as a major emitter of greenhouse gases. Now, it aims to transform its global image by investing in several sustainability projects. These include the Saudi Green Initiative, which plans to plant 10 billion trees, and the Middle East Green Initiative to combat climate change regionally. However, the most ambitious project is NEOM, a futuristic megacity meant to be entirely carbon-neutral and powered by renewable energy.
Saudi Aramco, the state-owned oil company, has aligned itself with the new sustainability-focused strategy. Since 2021, Aramco has released sustainability reports, with goals to achieve net-zero emissions across its directly operated assets by 2050. The reports also highlight investments in carbon capture technologies and hydrogen. Despite these efforts, Aramco continues to expand fossil fuel production.
Critics argue that Saudi Arabia’s focus on green hydrogen might be more about rebranding than a genuine shift away from oil. The kingdom remains a top global oil producer and has no immediate plans to phase out its hydrocarbons. Instead, it is betting on hydrogen to extend the lifespan of its oil and gas assets. Hydrogen can be produced in different ways, with green hydrogen being the most sustainable as it uses renewable energy to split water into hydrogen and oxygen.
The NEOM Green Hydrogen Company, a joint venture involving Saudi entities and a U.S. partner, plans to produce 220,000 tons of green hydrogen per year by 2026.
