The Middle East Is Implementing Novel NOC And IOC Economic Structures In An Effort To Create A Low-Carbon Global Economy

Since cement production accounts approximately 8 percent of global carbon emissions, skyscraper developments cannot be made carbon neutral by just planting trees during construction. The oil and gas sector is also closely linked to pollution. There is a consequent need to inquire as to what strategies these sectors have in place to prevent CO2 from entering the atmosphere.

Dr. Akram Awad, a partner at the Boston Consulting Group, notes that "countries of the region remain among the highest emission producers per capita, with the limited short-term aim that falls beyond the 1.5C Paris Agreement Target" (BCG).

As a side effect of the conflict in Ukraine and the subsequent ban on oil and natural gas from Russia, a fight to conserve energy has been sparked, with the urgency of climate action becoming a casualty.

Fearing a shortage of natural gas, Germany has resumed burning coal at its power facilities. Due to rising energy prices caused by conflict, more nations are turning to fossil fuels than expected, putting pressure on their ability to meet emission reduction goals. What happens to the fossil fuel industry's lofty net-zero ambitions if production is ramped up to fulfil the demand sparked by the conflict in Ukraine?

Greenwashing can increase a company's stock price by the use of empty but symbolic gestures like advertising campaigns, publishing emission targets, and establishing advisory boards. But are the businesses really making a difference by taking real climate action? Are they, and if so, what evidence do they have?

 There is still a long way to go before all Middle Eastern sectors are on pace to meet national net-zero targets, but significant actors in the energy and industrial sectors have made progress in incorporating climate action into their agendas, as noted by Awad.

Do businesses in the Middle East have plans, strategies, structures, and tools necessary to put such plans into action? And, most crucially, who is responsible for tracking how close local firms are to meeting their goals as a result of these plans?

Here's where NQA comes in to make sure sustainability isn't just lip service. The group, which operates in 90 countries, defines carbon neutrality as when a business removes more carbon from the atmosphere than it releases. It suggests that a full rethinking of business models may be necessary in order to take use of energy-saving technology, move to low-carbon energy sources, and run on renewable power.

Carbon neutrality certification by NQA is based on a two-stage audit procedure that is consistent with the hundreds of ISO standards that are used to help businesses reach net-zero emissions. It also notes that while businesses are making strides to reduce their carbon footprint, the science behind absorbing CO2 is still in its infancy. Carbon capture and storage technologies, along with related equipment like carbon dioxide scrubbers, are not yet economically viable.

The aviation industry has been singled out by a global accreditation body as one that is reevaluating its methods and tools.

Little people making a big difference in climate change?

While aviation is responsible for only 2.5% of global carbon emissions, significant steps have been taken to save the environment. Airlines in the Middle East are increasing their climate action by using biofuels and increasing passengers' knowledge of turbulence, both of which reduce aircraft energy use.

Qatar Airways has joined the IATA's turbulence awareness campaign and implemented 70 fuel-saving measures since 2015. As part of this initiative, airlines all over the world share information regarding weather conditions to aid one another in navigating the skies more efficiently and with less energy use. In addition, it has promised to help achieve the World Economic Forum's target of having 10% of jet fuel come from sustainable sources by 2050.

With its goal of reaching carbon neutrality by 2050, Qatar Airways has also made history by being the first airline to complete a transaction on the International Air Transport Association's (IATA) Aviation Carbon Exchange (ACE) platform. This market allows airlines to buy and sell emission units in order to fulfil carbon reduction targets.

Emirates, a major airline headquartered in Dubai, has taken a more practical tack, calling on the aviation industry to maintain reasonable goals. At the IATA World Air Transport Summit in late 2021, President Tim Clark criticised the industry's lofty goals of reducing emissions by 40% in a decade. In terms of concrete measures, Emirates has collaborated with navigation service providers to chart the most efficient routes and minimise headwinds in order to lower fuel consumption each flight. Using fuel monitoring technology and data analytics, the airline has also decreased fuel uplift at the pilot's discretion.

Under our environmental sustainability framework, reducing emissions is a top concern for Emirates. According to Shannon Scott, Emirates' senior manager for Environment Affairs, "this comprises a strategy of maintaining a young and fuel-efficient fleet, a continuing comprehensive operational fuel efficiency programme, and support for the UAE and international programmes on sustainable aviation fuel."
Besides taking use of tailwinds, shutting down some engines during approach, and avoiding engine reverse thrust during landing, Emirates also employs a few other basic measures to save fuel consumption. The airline utilises artificial intelligence to forecast the rise of drinkable water in each trip as part of regulating the weight of each aircraft to boost energy efficiency.

"Carbon Offsetting and Reduction Scheme for International Aviation, which Emirates has pledged to implement (CORSIA). To stabilise global emissions at 2019 levels over the medium term and to offer extra incentives for adopting sustainable and low carbon fuels, ICAO established CORSIA, which is being implemented by ICAO member nations including the UAE," stated Scott.

Emitters at full strength to confine carbon

The oil and gas industry is responsible for 42% of all emissions, or over 2 billion tonnes per year, due to both industrial processes and consumer use of fossil fuels. Thus, the global energy sector must completely revamp its business model and adjust to the emergence of unconventional energy sources if it is to fulfil its commitment to lowering its carbon footprint. With sanctions on Russia, demand for oil and gas from the Gulf has surged, and Saudi Arabia and the United Arab Emirates are the world's biggest oil producers in the Middle East.

Reaching net-zero levels by 2050 will be an enormous challenge for Saudi Aramco, a state-owned company. By 2035, the corporation has committed to reducing yearly carbon dioxide emissions by more than 50 million metric tonnes and to capturing 11 million tonnes of CO2 for use in other processes. While the corporation has promised to cut emissions from its own activities, it has been silent on the issue of Scope 3 emissions, which result from customers using the fossil fuels the company sells.

Carbon capture or sequestration is the practise of storing carbon dioxide (CO2) that would otherwise be released into the environment by large-scale enterprises like factories or power plants. As an additional area of research, Aramco experts have spent nearly a decade perfecting mobile carbon capture technology, which involves bringing CO2 from a vehicle's exhaust into contact with solvents. While doing so, it produces and stores most of its own exhaust in a tank on board. This exhaust consists of nitrogen, water vapour, and carbon dioxide.

While the global energy and economic landscape remains unpredictable, Aramco president and CEO Amin H. Nasser says the company is "investing for the long-term" and "will continue to integrate innovative technology in our operations over the next decade and beyond." Aramco is increasing output to create 11 million tonnes of blue ammonia and 2 million tonnes of blue hydrogen as part of its sustainability agenda. Steam methane reforming creates blue hydrogen by removing carbon from the hydrogen and storing it separately. But there's a catch: natural gas drilling, which is required to make blue hydrogen, results in fugitive emissions due to methane leakage into the atmosphere.

ADNOC, the state-owned equivalent of Aramco in the UAE, is another major oil producer in the Middle East, and it has pledged to reduce the intensity of its greenhouse gas emissions by 25% by 2030. The corporation plans to raise annual carbon capture from 800,000 tonnes to 5,000,000 tonnes in order to accomplish this.

To add to the positive impact on the environment, ADNOC recycles the seawater it uses for cooling back into the ocean after each production cycle. Along with this, ADNOC plans to reduce its use of freshwater to 0.5 percent of its total usage. Following in Aramco's footsteps, ADNOC has joined Masdar in acquiring a 25% share in BP's blue hydrogen project in the United Kingdom. In addition, the companies will collaborate to build Abu Dhabi's first blue hydrogen generation facility.

Strategic plans for meeting global demand while reducing emissions

Several noteworthy systems and initiatives aimed at reducing or capturing emissions appear to be proceeding as planned. Of course, these oil behemoths have some big shoes to fill as well. How likely is it that emission reduction targets will be met, given the differing circumstances?

In addition, Nasser stated, "Our goal is to achieve operational net-zero by 2050," and the company's sustainability report details how it plans to keep up with increased energy consumption while also aiding the greater energy transition.

Retailers in the Middle East are doing their part to lessen the region's negative impact on the environment alongside the oil and gas industries. To achieve a positive environmental impact by 2040, the Majid Al Futtaim group is working to reduce its usage of both water and carbon-based fuels. The retail giant has challenged all of its divisions to reduce their operational carbon and water footprints by 37% by the end of 2022.

Organizations can get a leg up on their net-zero goals with the help of smart systems powered by data analytics and AI. Artificial intelligence (AI) can be used to fine-tune and improve operational procedures, resulting in a smaller carbon footprint for the entire business. According to Awad, the options "cover the whole gamut, from steps aimed at reducing emissions to bolstering the company's capacity for adaptation and resiliency."

The future of the Middle East as seen through these pledges is green, but big emitters are still struggling to put their ideas into action. Smaller emitters, including airlines, appear to be on track to meet their targets. In such a setting, the effectiveness of regional emission reduction targets remains to be seen.