Climate action: Report finds MENA business community lagging behind

Arabian Post Staff
While MENA countries have demonstrated a growing commitment to climate action through net-zero targets, action from the business community still lags behind that of global peers, and consumers still underestimate their regional vulnerabilities, a report jointly prepared by the World Economic Forum and Bain & Company said.

The report focusses on nine major MENA economies: Saudi Arabia, UAE, Egypt, Qatar, Kuwait, Morocco, Oman, Tunisia, and Bahrain.

The report, however, said despite starting from behind, the region has the necessary conditions to leapfrog others on the sustainability journey and share a new model for bold and coordinated regional action that leaves no one behind on a path to greener growth.

MENA holds the advantage in both conventional sources of energy—given its low costs and low-emissions profile for hydrocarbon extraction—and renewables energy generation—noting its solar potential and vast swathes of available land.

It says successfully transitioning to a sustainable future will hinge on bold measures from policymakers and companies, raising awareness and increasing the number of multi-stakeholder partnerships. This entails stepping up efforts on decarbonization and emission-related target-setting, and taking bold steps to unlock value from energy transition.

The report finds that MENA countries have demonstrated growing commitment to climate action through net-zero targets, however current pledges fall short, business adoption lags global peers, and consumers underestimate regional vulnerabilities. Successfully transitioning to a sustainable future will hinge on bold measures from policymakers and companies, raising public awareness and establishing multi-stakeholder partnerships.

For businesses, the report outlines that this entails setting science-based targets, decarbonizing operations, deploying resilient planning, and mobilizing sustainable finance. For policymakers, it is imperative to establish clear climate regulations, enable access to technology and infrastructure, expand access to sustainable financing solutions, and facilitate access to education to grow talent. Together, strategic climate action can strengthen economic diversification, exports and employment across MENA.