Closing the Climate Action Gap: Accelerating Decarbonization and the Energy Transition in MENA

The MENA region is warming at twice the global average, facing severe water scarcity and economic risks, yet corporate climate action lags behind global peers. While 60% of the region's emissions and GDP are covered by net-zero pledges, only 12% of businesses have committed to net-zero targets. The report argues that MENA can 'leapfrog' the energy transition by leveraging its world-leading solar and wind potential, low-cost hydrocarbon production, and vast carbon storage capacity. It recommends a 'Visionary Pragmatism' approach, combining the continued supply of affordable conventional energy with aggressive investment in green hydrogen, sustainable aviation fuel (SAF), and carbon capture, utilization and storage (CCUS). Specific policy roadmaps are proposed to improve emissions disclosures and support the distinct needs of GCC versus non-GCC countries.

• The MENA region is experiencing extreme warming, heating up at twice the global average over the last 40 years, and could be 4°C warmer by 2050 if current trajectories continue.
• Despite global contributions being around 8%, MENA's emissions have tripled over three decades, with a 21% increase in the last ten years, resulting in a 2019 per-capita emission rate of 8.6 mTCO2e, the second highest globally after North America.
• Corporate climate leadership in MENA significantly trails global peers; only 12% of businesses have committed to net-zero targets, and only 6% have established clear roadmaps to achieve them.
• State-owned enterprises (SOEs) are leading the regional business community in sustainability, with 50% developing capabilities in either clean hydrogen or carbon capture, utilization and storage (CCUS).
• MENA possesses world-leading natural advantages for the energy transition, including receiving 22–26% of all solar energy striking Earth and having an estimated CO2 storage capacity of 170 Gt, the highest globally.
• The region has the potential to generate approximately $120 billion per year through decarbonization levers in the power, industry, and O&G sectors, as well as the export of renewables, clean hydrogen, and SAF.
• By 2035, MENA could export up to 18 Mtpa of clean hydrogen (in ammonia form) to Europe and East Asia, potentially generating $70 billion in revenue.
• The power sector is a major emissions source (33% of regional emissions), and shifting from simple-cycle to combined-cycle turbines and phasing out oil and coal could generate $33–34 billion in revenue by freeing up fuel for export.
• There is a significant gap in consumer perception; while 65% of MENA consumers recognize climate change as a global threat, only 45% perceive the region's specific vulnerability.
• Decarbonization strategies must differ by economic profile: GCC countries should focus on reducing emissions intensity in hard-to-abate sectors, while non-GCC countries must prioritize decarbonization without hindering poverty alleviation and economic growth.

APA

World Economic Forum (2023). Closing the Climate Action Gap: Accelerating Decarbonization and the Energy Transition in MENA. https://www3.weforum.org/docs/WEF_Closing_the_Climate_Action_Gap_2023.pdf

Chicago

World Economic Forum. Closing the Climate Action Gap: Accelerating Decarbonization and the Energy Transition in MENA. 2023. https://www3.weforum.org/docs/WEF_Closing_the_Climate_Action_Gap_2023.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Closing the Climate Action Gap: Accelerating Decarbonization and the Energy Transition in MENA |date=October 2023 |url=https://www3.weforum.org/docs/WEF_Closing_the_Climate_Action_Gap_2023.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2023closing, author = {{World Economic Forum}}, title = {{Closing the Climate Action Gap: Accelerating Decarbonization and the Energy Transition in MENA}}, institution = {World Economic Forum}, year = {2023}, month = oct, url = {https://www3.weforum.org/docs/WEF_Closing_the_Climate_Action_Gap_2023.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }