May 16, 2025
Journal Article

Assessing the Impact of Energy Transition Initiatives on the Policy Cost of Saudi Arabia's Net-Zero Ambition

Abstract

Saudi Arabia's ambitious goal to achieve a net-zero economy by 2060 offers a unique opportunity for diversification away from fossil fuels while fostering long-term economic resilience and sustainability. Crucial to this transition are energy policies that steer the Kingdom from a fossil fuel-based economy toward carbon neutrality. Using GCAM-KSA, a multi-sectoral integrated assessment model tailored to Saudi Arabia’s economic and energy systems, this study evaluates the impact of early energy transition initiatives on the policy costs of achieving the net-zero target in Saudi Arabia. Insights from the study indicate that early action in the form of current and proposed energy initiatives has the potential to reduce the inertia associated with low-carbon technology adoption. Consequently, this reduces the economic burden associated with the net-zero transition. Comparing the cost estimates of early action to a scenario of delayed implementation reveals significant long-term net benefits, with policy cost reductions ranging from 38-72%. This highlights that early action energy system initiatives have the potential to reduce the economic burden associated with the net-zero transition. These findings offer valuable insights into how current and planned energy policies can mitigate the economic challenges associated with Saudi Arabia's transition to a net-zero economy.

Published: May 16, 2025

Citation

Apeaning R., P. Kamboj, M. Hejazi, Y. Qiu, P. Kyle, and G.C. Iyer. 2025. Assessing the Impact of Energy Transition Initiatives on the Policy Cost of Saudi Arabia's Net-Zero Ambition. Energy and Climate Change 6:Art. No. 100184. PNNL-ACT-SA-10883. doi:10.1016/j.egycc.2025.100184

Research topics