{"id":12063,"date":"2016-11-04T15:52:47","date_gmt":"2016-11-04T19:52:47","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/negotiating-your-own-demise\/"},"modified":"2016-11-04T15:52:47","modified_gmt":"2016-11-04T19:52:47","slug":"negotiating-your-own-demise","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/negotiating-your-own-demise\/","title":{"rendered":"Negotiating your own demise"},"content":{"rendered":"

Saudi Aramco\u2019s Path towards Sustainability <\/em><\/p>\n

“How does a country negotiate its own perceived demise?\u201d[1]<\/a> This question posed by journalist Antonia Juhasz in a 2015 Newsweek report relating to the UN\u2019s 21st Conference of Parties is one worth considering when thinking about Saudi Arabia\u2019s role leading up to the climate change discussions.<\/p>\n

Until recent years, leaders of oil-dependent economies have focused on reaping the economic and social benefits of their limited natural resources to drive growth and prosperity. Like a double edged sword, the path towards development has also paved the way towards long-term impacts on energy sustainability and the environment. For many countries and companies, finding the balance between long-term growth and sustainability has proved difficult.<\/p>\n

Threats and Opportunities in Combating Climate Change <\/em><\/p>\n

Deploying renewable power and targeting energy efficiency strongly depends on oil revenues. Saudi Arabia controls 16% of the world\u2019s proven oil reserves with the oil sector accounting for roughly 80% of budget revenues, 45% of GDP, and 90% of export earnings.[2]<\/a><\/p>\n

The country embarked on a National Transformation Program (\u2018NTP\u2019)[3]<\/a> aimed at preserving natural resources and diversifying the economy by channeling oil earnings into lower emission sectors ranging from financial services and tourism to renewable energy and efficiency technology to enhance growth[4]<\/a>. Plans to diversify the energy mix would lead to co-benefits in pursuing economic diversification from oil, while contributing to greenhouse emission (\u2018GHG\u2019) mitigation and adaptation to climate change. Today, the key issue for Saudi Arabia and its national oil company Aramco is around accountability and commitments to limit warming below 1.5\u00b0C [5]<\/a>.<\/p>\n

Mitigation and Adaptation Measures<\/em><\/p>\n

During the Oil & Gas Climate Initiative, ten member companies including Aramco, BP and Shell agreed to increase their investment to combat climate change. \u00a0The program committed to significant investments in natural gas, carbon capture and storage (\u2018CCS\u2019), renewable energy, as well as low-GHG research and development.<\/p>\n