Decarbonisation in the Middle East: Progress, Challenges & Innovations

In the Middle East, the decarbonisation process is undergoing significant changes in terms of energy production, with a shift towards renewable energy, particularly solar power. This shift is driven by the region's natural advantages, such as abundant sunlight and vast desert landscapes, as well as growing global pressure to address climate change. The UAE has committed to achieving net-zero emissions by 2050, while Saudi Arabia and Bahrain have pledged to reach net-zero emissions by 2060. Middle Eastern investments in the energy sector globally have grown significantly, increasing from USD 173 million in 2023 to USD 442 million in 2024.

According to the World Economic Forum (WEF), about 70% of the Middle East and North Africa (MENA) region’s emissions now fall under net-zero pledges, up from 60%. Approximately 46% of large companies in the MENA region have initiatives to manage their emissions, and 41% of the largest companies disclose their Scope 1 and Scope 2 emissions. Countries included in the scoping for the Middle East region are: UAE, Bahrain, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Oman, Palestine, Qatar, Saudi Arabia, Syria, and Yemen.

Major Strategies for Decarbonisation

1. Renewable Energy Adoption

The shift towards solar, wind, and hydrogen energy is accelerating across the Middle East, driven by national sustainability goals and economic diversification strategies. Large-scale projects, such as Saudi Arabia’s NEOM and the UAE’s solar parks, are playing a crucial role in expanding renewable capacity.

2. Transitioning from Fossil Fuel-Powered Systems to Electric Alternatives

The region is investing in electrification across industries, from electric vehicles (EVs) and public transport to renewable-powered desalination plants. However, challenges such as grid infrastructure and battery storage must be addressed to ensure a seamless transition.

3. Carbon Capture and Storage (CCS)‍

CCS technologies are gaining traction as a critical solution for reducing emissions from existing fossil fuel industries. With a projected 44% CAGR from 2025 to 2030, the Middle East is positioning itself as a leader in carbon sequestration and utilisation to support net-zero ambitions.

4. Sustainable Practices‍

Sustainability initiatives in tourism, construction, and waste management are helping reduce environmental impact. Strategies like zero-waste policies, water recycling, and eco-tourism projects are being widely adopted to balance economic growth with environmental preservation.

5. Policy and Regulation‍

Governments are strengthening climate policies, carbon pricing mechanisms, and sustainability mandates to drive decarbonisation. Frameworks like the UAE’s Net Zero by 2050 and Saudi Arabia’s Vision 2030 set clear roadmaps for reducing emissions and encouraging green investments.

Sector-Specific Overview

1. Power Generation Sector‍

This sector is currently the largest contributor to CO2 emissions in the Middle East, primarily due to its reliance on fossil fuels like natural gas and oil. As of 2023, the Middle East's power generation is heavily reliant on fossil fuels, with natural gas accounting for about 74% of electricity production. However, renewable generation is expected to grow by approximately 14% annually from 2025 to 2027, driven primarily by solar power.

1. Nuclear Energy Contribution: Under the leadership of the UAE, significant strides have been made in nuclear energy, with the Barakah nuclear power plant contributing to a diversified energy mix. Nuclear power saw a 20% year-on-year increase in 2024.
2. Solar Power Capacity: The Middle East currently hosts over 12 GW of installed solar capacity, with significant contributions from countries like the UAE and Saudi Arabia.
   • Saudi Arabia: The National Renewable Energy Program (NREP) targets a total of 58.7 GW of renewable energy capacity by 2030, with approximately 40 GW expected to come from solar power.
   • UAE: The Mohammed bin Rashid Al Maktoum Solar Park in Dubai is set to reach up to 5 GW by 2030.

2. Transportation Sector‍

The World Bank expects emissions from transport to grow by 60% by 2050. Sustainable transportation infrastructure is crucial for the Middle East to reduce emissions and adapt to climate change impacts. The sector accounts for nearly one-fourth of energy-related CO2 emissions in the Middle East.

1. Public Transport: Expanding public transportation networks like metros, buses, and trains contributes to low-carbon mobility across Middle Eastern cities. Major public transit projects are underway in the UAE and Saudi Arabia, such as the Dubai Metro, Abu Dhabi Metro, and Riyadh Metro.
2. Electric Vehicles: The UAE and Saudi Arabia have set ambitious adoption targets for electric vehicles, aiming for up to 30% by 2030.
3. Aviation: Aviation accounts for 2% of global energy-related CO2 emissions in 2022. Dubai’s airline Emirates has created a USD 200 million Sustainable Aviation Fund to finance research and development into sustainable fuel and energy technologies, representing the single largest commitment to sustainable research by any airline.

3. Tourism Sector‍

According to a report by the World Tourism Organization (UNWTO), tourism accounts for around 8% of global GHG emissions, with the hospitality industry being a major contributor. In Middle Eastern countries, the tourism sector contributes about 9% to the region's GDP, which is expected to increase with an average annual growth rate of 7.7% up to 2032, highlighting it as a key engine for economic expansion in sustainable tourism.

1. Saudi Arabia: The ‘Red Sea Project’ aims to integrate conservation with tourism, addressing key threats to the 4,000 km Red Sea coral reef, which faces risks from overfishing, pollution, and mass tourism.
2. Bahrain: The ‘Four Seasons Hotel Bahrain Bay’ recycles 100% of its wastewater for garden irrigation, exclusively uses eco-friendly cleaning products, and follows an energy-saving policy of changing linen and towels every three days. Bahrain’s tourism strategy (2022-2026) is designed to support the nation’s commitment to eco-tourism.

4. Waste Management Sector‍

This sector contributes around 3.5% of global greenhouse gas emissions, with methane from organic waste accounting for 20% of global methane emissions. Currently, the Middle East region generates approximately 150 million tons of urban waste annually, with Bahrain, Saudi Arabia, Qatar, the UAE, and Kuwait ranking among the top ten countries for per capita solid waste production. The region is actively pursuing decarbonisation in waste management through various initiatives, particularly focused on waste-to-energy technologies, circular economy principles, and public awareness campaigns, aligning with regional climate change goals and international sustainability efforts.

Example: The UAE’s 'Waste to Zero’ project focuses on boosting solutions towards decarbonisation in the waste management sector, which emits an estimated 3% to 5% of global greenhouse gas emissions.

Conclusion

As a global hub for oil and gas production, the Middle East has historically been heavily reliant on fossil fuels. However, the growing urgency of climate change and the global shift toward sustainability are driving a transformation. To achieve meaningful progress, collaboration between governments, private sectors, and international partners is essential. Policymakers must implement supportive regulations, incentivise green investments, and foster innovation. While the path to decarbonisation is complex, the Middle East has the potential to become a global model for sustainable industrial transformation, ensuring long-term environmental and economic resilience in a low-carbon future.