Energy research shows that Saudi Arabia plays a key role in a carbon-friendly future. The Arab Petroleum Investment Corporation, jointly initiated by 10 Arab oil exporting countries, announced a few days ago that to support the energy transition, it plans to allocate US$1 billion to green energy projects and sustainable energy companies in the Middle East and North Africa in the next two years.

Currently, the company’s green assets, including loans and direct investments, have reached $55 million, which has quadrupled from five years ago and accounts for 13% of its investment portfolio. In the next period of time, the Arab Petroleum Investment Corporation will introduce green and sustainable bonds to promote the adoption of sustainable business models in the energy industry and encourage industry participants to practice energy diversification and sustainability.

On September 13, the company announced a new environmental, social and governance (ESG) policy framework to promote the energy transition of its member states and related countries. The new policy framework includes the establishment of due diligence tools to assess the impact of financial investment decisions on the environment, society and governance, focusing on supporting the dissemination and application of renewable energy and low-carbon technologies, and forging more strategic partners to promote the sustainable agenda.

In this way, Saudi Arabia and other Gulf countries can establish economies of scale and pool human, capital, and technological resources in a cost-effective manner. The chairman of the company’s board of directors, Abdullah, said that the world is undergoing unprecedented changes. The company’s member states, partners and stakeholders have the responsibility to respond to environmental and climate change challenges. Economic Transformation. Editor/Xu Shengpeng