RIYADH: Saudi Arabia is set to deepen its collaboration with the International Renewable Energy Agency to advance sustainability initiatives, according to a senior official. 

Speaking to Arab News on the sidelines of the UN Convention to Combat Desertification COP16, Francesco La Camera, director-general of IRENA, stated that Saudi Arabia is a key leader in transitioning away from fossil fuels, thanks to the Kingdom’s Green Initiative. 

He also highlighted global progress in renewable energy, noting that last year saw a record increase in capacity, driven by advancements in green hydrogen and sustainable biomass.

“We are working on signing an agreement with the GCC countries, so we will see when we will be ready. We will announce that we are working more closely with Saudi Arabia on our topics and our area of interest,” La Camera said. 

He added: “Just to give you an example now, ACWA Power is a Saudi company, but it is the elite company for decentralization. They invest in 12 different countries, and this is something amazing, and this is an effort also outside the country to work for the energy transition, providing water in a country that stresses all this.” 

The IRENA director-general stressed the importance of all nations, including Saudi Arabia, to increase efforts, with the expectation that updated national climate contributions will be submitted before February 2025. 

“Everyone has to do more, so we expect to see also the national climate contribution to be presented before February 2025. We also hope that our presence at COP will allow us to have more discussion and to increase the level of engagement of Saudi in the work of IRENA,” La Camera said. 

He added: “We think that, inevitably, Saudi is a leading country on all of this. It has the potential. It has the resources. It has the leadership to go faster and scale in the energy transition.” 

La Camera also outlined a strategy to address the structural challenges hindering the deployment of renewable energy at the speed and scale required to meet global energy and climate goals. 

The focus is on overcoming infrastructure barriers by creating interconnected, flexible, and balanced grids that can support a higher integration of renewable energy. 

This is where regional collaboration comes in, which is essential to achieving this objective. 

“I emphasize the role of the infrastructure. We need groups that are interconnected, flexible, and balanced to allow more renewables. Regional collaboration is crucial,” La Camera said. 

During his keynote speech at the Saudi Green Initiative, La Camera spoke about the need to design the market in a way that is more favorable for renewables. 

“We need to strengthen the capacity of the distribution to deal with this through a system that is more distributed instead of centralized, and also the need to reskill the personnel that is moving from the fossil fuel to the renewable area,” he said. 

La Camera concluded the interview by highlighting IRENA’s long-term planning efforts, which are essential for aligning financial investments with the needs of the renewable energy sector. 

RIYADH: Sovereign wealth funds have committed to intensifying their efforts to align financial investments with the goals of the Paris Agreement, marking a significant milestone in global climate finance.

At the 7th Annual One Planet Sovereign Wealth Funds CEO Summit in Riyadh, more than 140 global financial leaders, including French President Emmanuel Macron and Saudi Arabia’s Public Investment Fund Gov. Yasir Al-Rumayyan, presented strategies to accelerate the transition to a net-zero economy.

Held alongside COP29 and the Saudi Green Initiative, the summit brought together SWFs managing a combined total of $46 trillion in assets. These funds reaffirmed their dedication to integrating climate considerations into their investment portfolios.

In his speech, President Macron urged SWFs to play a more active role in driving sustainable investments. “Members of the OPSWF Network have the unique opportunity to lead a structural shift in global markets, steering investments toward climate resilience. By leveraging high-quality climate data and ensuring transparency, you are setting new standards for how markets assess sustainability,” Macron said.

He also highlighted the importance of innovative financial instruments, such as biodiversity credits, to help fast-track the transition to a sustainable global economy.

Al-Rumayyan echoed Macron’s call, emphasizing the PIF’s commitment to climate-aligned investments. “PIF is dedicated to achieving net-zero emissions by 2050, in line with Saudi Arabia’s goal of reaching net-zero by 2060. Renewables are a key focus for PIF, and we are working to localize renewable energy and hydrogen production to meet the target of developing 70 percent of the nation’s renewable energy capacity,” Al-Rumayyan stated.

The PIF governor also highlighted PIF's leadership in green finance, noting that it was the first sovereign wealth fund to issue a green bond and the first to launch a 100-year green bond.

“PIF, along with other OPSWF members, is fostering a sustainable and inclusive investment approach that ensures no one is left behind in the transition to net-zero,” he added.

A major theme of the summit was refining investment strategies to better incorporate climate considerations. Many OPSWF members have advanced their due diligence processes, using greenhouse gas emissions data and setting measurable climate-related targets. These efforts are geared toward scaling up investments in renewable energy, supporting green finance in challenging sectors, and utilizing AI technologies to enhance emissions reduction efforts.

During the summit, participants emphasized the need for greater transparency in climate data. OPSWF members agreed to improve climate-related disclosures, providing investors with clearer insights into risks and enabling them to align their portfolios with climate goals. A key initiative discussed was the development of platforms for real-time emissions tracking to support investment decisions.

Technology played a central role, with AI and climate data platforms highlighted as critical tools for improving investment efficiency and tracking emissions. The summit also focused on strategies for decarbonizing hard-to-abate sectors like energy, real estate, and hydrogen, with clean hydrogen identified as a pivotal solution for the global energy transition.

In addition, the summit addressed sustainable building practices to reduce emissions in real estate and launched initiatives to promote renewable energy investments in emerging markets, particularly in Africa. Participants committed to expanding nature-based solutions, aiming to deliver both long-term climate and financial benefits.