Paris Climate Agreement Saudi Arabia

Saudi Aramco`s commitment to “meeting the climate challenge” is primarily through “low-carbon oil.” According to data from Stanford University, the carbon footprint of their crude oil in the refinery is much lower than most global competitors – less than a quarter of Iranian crude oil, for example, and about a third of Iraqi oil – partly because of the low fire associated gas. The Saudi government has proposed economic stimulus measures to respond to the economic crisis caused by the pandemic, but at the same time it has increased VAT from 5% to 15% to address revenue losses from lower exports and oil prices. In April 2020, it also authorized additional subsidies of $240 million (US$0.9 billion) for electricity consumers in the trade, industry and agriculture sectors. None of the stimulus measures to combat climate change; On the contrary, subsidies provide additional support to an electricity system that operates almost exclusively on fossil fuels. Even the world`s largest CO2 emitters are suffering the effects of climate change. What prevents countries like Germany, India, Saudi Arabia, the United States and China from changing tactics and becoming green? The COVID 19 pandemic and the economic crisis that followed had a profound impact on Saudi Arabia. Faced with an economy largely dependent on oil export revenues, falling global demand for oil and falling prices have already caused the state budget to fall. As host of the G20 summit in November 2020, Saudi Arabia plays an important role in organizing global economic stimulus. In March 2020, G20 leaders pledged $5 trillion to the global economy to respond to the financial consequences of the pandemic. Although “protecting our planet” and efforts to combat climate change are important items on the agenda of this year`s summit, Saudi Arabia has reportedly made efforts to censor the debate on the abolition of fossil fuel subsidies. Saudi Arabia`s domestic climate policy objectives have no ambition: the NDC`s 2030 target is “critically inadequate.”

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