Murshad Habib
Sustainability Policy and Strategy Specialist
Aramco
Participates in
TECHNICAL PROGRAMME | Energy Leadership
Public Policy (Global and Local) - Climate Change, Transition Management, Supply Security and Energy Affordability
Forum 26 | Digital Poster Plaza 5
28
April
10:00
12:00
UTC+3
As the global energy sector navigates the competing priorities of sustainability, affordability, and security, policy makers face increasingly complex decisions—especially in contexts where policy trade-offs manifest unevenly across local and national levels. This abstract investigates how corporate decarbonisation strategies—exemplified by Saudi Aramco’s recent trajectory—can offer critical leadership and evidence to support more effective public policy responses to the energy trilemma.
Nationally, governments are under pressure to meet decarbonisation targets while managing economic competitiveness and energy access. According to the IEA (2023), 45% of necessary emissions reductions to 2030 in net-zero scenarios depend on technologies not yet deployed at scale—many of which require private sector innovation and capital. Aramco’s strategic investment in carbon capture, circular carbon economy technologies, and hydrogen demonstrates how corporate actors can mobilise resources and technical capacity in ways that policy alone cannot achieve. Its pledge to reach net-zero Scope 1 and 2 emissions by 2050 (Aramco, 2023), combined with a $1.5 billion sustainability fund and in decarbonisation investments announced in 2023, provides a template for private-public alignment.
At the local level, policy implementation often falters due to limited administrative capacity and uneven understanding of global energy challenges. Aramco’s iktva program, which has contributed over $200 billion to GDP and supported over 100,000 jobs, offers a replicable model for local industrial development that reinforces national energy strategies while building grassroots economic resilience. Moreover, its community investments—such as STEM education initiatives and disaster relief responses—align with SDG 11 (Sustainable Cities and Communities), demonstrating how companies can fill delivery gaps left by overstretched local governance.
Leadership in this space requires not only technological foresight but also the ability to navigate contested stakeholder interests across levels of governance. Aramco’s dual approach—simultaneously supporting global net-zero goals and regional economic inclusion—illustrates how multilevel governance challenges can be mitigated when corporate and public policy frameworks are strategically aligned.
This paper proposes that global energy companies, through transparent, long-term decarbonisation strategies, can enhance both the credibility and effectiveness of public energy policy. By translating complex climate and energy objectives into actionable pathways with measurable social and economic returns, corporate actors can serve as enablers of just and resilient transitions. Aramco’s case provides a grounded example of such leadership, offering important lessons for emerging and established economies alike.
Nationally, governments are under pressure to meet decarbonisation targets while managing economic competitiveness and energy access. According to the IEA (2023), 45% of necessary emissions reductions to 2030 in net-zero scenarios depend on technologies not yet deployed at scale—many of which require private sector innovation and capital. Aramco’s strategic investment in carbon capture, circular carbon economy technologies, and hydrogen demonstrates how corporate actors can mobilise resources and technical capacity in ways that policy alone cannot achieve. Its pledge to reach net-zero Scope 1 and 2 emissions by 2050 (Aramco, 2023), combined with a $1.5 billion sustainability fund and in decarbonisation investments announced in 2023, provides a template for private-public alignment.
At the local level, policy implementation often falters due to limited administrative capacity and uneven understanding of global energy challenges. Aramco’s iktva program, which has contributed over $200 billion to GDP and supported over 100,000 jobs, offers a replicable model for local industrial development that reinforces national energy strategies while building grassroots economic resilience. Moreover, its community investments—such as STEM education initiatives and disaster relief responses—align with SDG 11 (Sustainable Cities and Communities), demonstrating how companies can fill delivery gaps left by overstretched local governance.
Leadership in this space requires not only technological foresight but also the ability to navigate contested stakeholder interests across levels of governance. Aramco’s dual approach—simultaneously supporting global net-zero goals and regional economic inclusion—illustrates how multilevel governance challenges can be mitigated when corporate and public policy frameworks are strategically aligned.
This paper proposes that global energy companies, through transparent, long-term decarbonisation strategies, can enhance both the credibility and effectiveness of public energy policy. By translating complex climate and energy objectives into actionable pathways with measurable social and economic returns, corporate actors can serve as enablers of just and resilient transitions. Aramco’s case provides a grounded example of such leadership, offering important lessons for emerging and established economies alike.
