Achieving Climate Targets via the Circular Carbon Economy: The Case of Saudi Arabia

Abstract

Clean hydrocarbon technologies have a key role to play in achieving the circular carbon economy while meeting climate targets in many countries around the world. The aim of this work is to assess which technology, or combination of technologies, is the most cost-effective in achieving climate targets by 2030 leading to a quick and smooth transition to a low carbon energy system in Saudi Arabia and similar oil-based economies. We find that low carbon policy support by banning crude oil in power generation, leads to accelerated underground oil gasification, in the absence of carbon prices. We also find that setting a policy for carbon reduction targets leads to a more flexible energy system transition enabling more technologies in the mix with an increasing transition period. Our results also show that clean hydrocarbon technologies may be sufficient to achieve new climate targets, as shown by the stabilised emissions in scenario 3 by 2025, without the implementation of renewable sources of energy which most studies do not include. We propose that by investing in clean hydrocarbon technologies over the short term, the transition towards a low carbon economy will be accelerated while developing renewable sources of energy over the long term.