Goldman Sachs – Low-carbon Capex

Goldman Sachs acknowledges the potential for the Gulf Cooperation Council (GCC) countries to become a global hub for clean energy. With the upcoming United Nations Climate Change Conference in 2023, these countries have set ambitious net-zero carbon targets and are actively working towards decarbonization. This includes companies in the energy, industrials, and infrastructure sectors. As part of Goldman Sachs' Carbonomics framework, the company recognizes the advantages of the GCC region, including its low-cost energy position, proximity to key import markets, and supportive regulatory environment. These factors make the region well-positioned to not only develop fossil fuels but also renewable energy, carbon sequestration, clean fuels, and technologies. Goldman Sachs identifies four key areas where significant investments will be made to support the transition towards clean energy. These include increasing natural gas and renewable capacities to phase out liquids in power generation, expanding clean fuel offerings through investments in clean technology, and developing the necessary infrastructure to support this transition. The estimated investment required for these sub-sectors by 2030-35 is between US$608-654 billion, which closely matches the investments targeted in traditional energy. This report from Goldman Sachs is part of their GCC Capex Wave Series, which aims to identify completed, ongoing, and planned projects by GCC countries as they work towards achieving their decarbonization goals.