RIYADH: In a highly anticipated announcement scheduled for tomorrow, Saudi Arabia is set to introduce a new domestic market mechanism that promises credibility, transparency, and adaptability.
Speaking at the MENA Climate Week in Riyadh, Saudi Energy Minister Prince Abdulaziz bin Salman, said: “We have a very important announcement tomorrow. We will be launching credible, transparent, and adaptable domestic market mechanism.”
The minister emphasized that Saudi Arabia sees an opportunity to generate clean electricity as part of its efforts to reduce carbon emissions. He noted: “We believe that we can become a source of green and clean hydrogen and a source of green electricity.”
Furthermore, the energy minister pointed out that global energy needs will evolve over time, leading to changes in the landscape of oil production.
MENA Climate Week, taking place in Riyadh from Oct. 8 to 12, will contribute to the UN Climate Change Conference, also known as COP 28, in Dubai at the end of the year. (SPA)
He explained: “The world will need all these energy resources, and in the long term, the map of who produces oil will change.”
He added: “There are regions and countries in the world that will try to benefit from their resources, and consequently, at some point, we will find that their oil production will decrease, while other countries will have the capacity to produce for years in the future.”
The minister stated there is a justifiable and important reason for Saudi Arabia to keep producing oil and gas, even though the share of oil and gas in the overall energy supply “diminished.”
However, he continued: “But that is within an integrated energy system leading up to 2050,” highlighting that “the most important thing is optimal utilization, how to achieve it, and where these resources will come from.”
The energy minister also said: “We are working with SABIC and several other institutions on the technology of extracting, capturing and benefiting from carbon.”
Suhail bin Mohammed Al-Mazrouei, the UAE minister of energy and infrastructure, highlighted the significance of interconnectivity in the context of energy transition.
He noted that the Gulf Cooperation Council region is “fortunate” to have invested in a network that connects them, facilitating the transition to cleaner energy sources.
“One thing that is very important as well is interconnectivity. You cannot transition without transmission and transmission now is very important,” Al-Mazrouei said.
Expressing concern about current energy consumption habits, Al-Mazrouei urged the present generation to teach their children to use significantly less energy, aiming for a reduction of 40 to 50 percent compared to current energy consumption levels.
The MENA Climate Week, taking place in Riyadh from Oct. 8 to 12, will contribute to the UN Climate Change Conference, also known as COP 28, in Dubai at the end of the year.
Participants in Riyadh will discuss climate action challenges and opportunities in the MENA region, with a focus on accelerating the implementation of the Paris Agreement.
