Riyadh - Mubasher: Saudi Arabia could become the centre for green finance in emerging markets, bringing huge economic and commercial benefits to the economy in line with the Saudi Vision 2030, according to KPMG International.
The Saudi government intends to attract $30-50 billion of new investments into renewables by 2030 and plans to tender around 9.5 gigawatts (GW) of solar and wind capacities by 2023.
“The amount of capital required to support the energy transition is vast and it is for this reason that a whole new sector called green finance has emerged in recent years delivering new products such as green bonds and green insurance. Much of the expenditure in renewables over the next 20 years will be in emerging markets and so Saudi Arabia should concentrate on creating a centre for green finance for emerging markets," said Michael Hayes, Global Head of Renewables at KPMG.
The International Renewable Energy Agency (IRENA) predicts that until 2050, $148 billion will be needed per year to meet the goals of the Paris Climate Accord, limiting global temperature increases to 1.5 degrees above pre-industrial levels.
“Climate change is now recognised as the most significant risk on the planet and is likely to dominate the political and economic landscape for many years to come. While there are many different ways to help in the fight against climate change, transitioning from conventional power usage to renewable power is still one of the best and most effective solutions available,” Hayes noted.
