Table of Contents |
1. | Environmental Challenges, Regulations and Institutions in Saudi Arabia | 1 |
1.1. | Overview | 1 |
1.1.1. | Key Environmental Challenges | 2 |
1.2. | Environmental Regulations | 8 |
1.3. | Institutions Responsible for Environmental Policies in Saudi Arabia | 11 |
1.3.1. | Services Provided by PME | 13 |
1.3.2. | Achievements of the PME | 13 |
1.3.3. | Institutions Responsible for Renewable Energy | 14 |
1.3.4. | Strengthening Regulations and Institutions | 17 |
1.4. | Lessons from Around the World | 19 |
1.5. | Comparing Saudi and Other Countries' Laws on Waste Control and Management | 20 |
1.6. | Lessons on Energy Efficiency | 23 |
1.7. | Opportunities for the Private Sector | 24 |
2. | Environmental Concerns and Policies in Saudi Arabia | 27 |
2.1. | Overview | 27 |
2.2. | Stylised Facts | 28 |
2.3. | Literature Review of the Economic Growth--Environment Nexus | 40 |
2.4. | Modelling the Economic Growth--Environment Link for Saudi Arabia | 41 |
2.4.1. | Analysis of the Results | 44 |
2.4.2. | Economic Growth Forecasts Based on the Three Emissions Reduction Scenarios | 46 |
2.4.3. | Testing for Structural Breaks in the Environment--Growth Relationship | 47 |
2.5. | Policy Implications | 48 |
3. | Environmental Investments | 53 |
3.1. | Overview | 53 |
3.2. | Green Bonds and Green Sukuk | 54 |
3.2.1. | Why Green Bonds? | 54 |
3.2.2. | Leading Issuers of Green Bonds | 55 |
3.2.3. | Leading Underwriters of Green Bonds | 57 |
3.2.4. | Prospects of Green Bonds | 58 |
3.2.5. | Key Issues and Challenges | 59 |
3.2.6. | Islamic Bonds (Sukuks) | 60 |
3.3. | Venture Capital | 63 |
3.3.1. | Why Venture Capital? | 64 |
3.3.2. | Global Landscape of Venture Capital | 64 |
3.3.3. | Venture Capital Investment in Environmental or ̀Green' Products | 67 |
3.3.4. | Venture Capital in the GCC Region | 68 |
3.3.5. | Investment Strategies of Venture Capital Funds | 70 |
3.4. | Private Equity and EFs | 71 |
3.4.1. | Environmental Funds | 72 |
3.4.2. | Investment Strategy of EFs | 73 |
3.4.3. | Performance of EFs | 75 |
3.5. | Clean Development Mechanism | 78 |
3.5.1. | CDM Project Eligibility and Trends | 78 |
3.5.2. | Limitations of CDM | 79 |
3.6. | Public Private Partnerships | 80 |
3.6.1. | Global PPP Landscape | 81 |
3.6.2. | PPPs in the GCC Region | 83 |
3.6.3. | Challenges Facing PPPs in the GCC Region | 85 |
3.6.4. | Policy Options for Successful Implementation of PPPs in the GCC Region | 91 |
3.7. | Conclusion | 92 |
4. | Incentive Structures | 95 |
4.1. | Overview | 95 |
4.2. | Incentives Schemes for Green Investments | 96 |
4.3. | Direct Financial Incentives | 98 |
4.3.1. | Tax Instruments | 98 |
4.3.2. | Subsidies, Direct Grants, and Soft Loans | 99 |
4.4. | Public Finance Mechanisms | 101 |
4.5. | Legal and Regulatory Policies | 103 |
4.5.1. | Feed-in Tariffs | 106 |
4.5.2. | Utility Quota Obligation | 109 |
4.5.3. | Net Metering | 110 |
4.5.4. | Obligations and Mandates | 111 |
4.5.5. | Challenges Posed by Weak Legal and Institutional Capacities | 112 |
4.5.6. | Miscellaneous Incentives | 112 |
4.5.7. | Education and Information Dissemination | 113 |
4.5.8. | Stakeholder Involvement | 113 |
4.6. | Policy Options for Saudi Arabia | 114 |
5. | Environmental Business Channels | 117 |
5.1. | Overview | 117 |
5.2. | Global and Regional Environmental Markets | 118 |
5.3. | Global Environmental Business Segments | 121 |
5.4. | Key Players in the Global Environmental Market | 126 |
5.5. | Do Incentives Matter? | 126 |
5.5.1. | Regression Results | 130 |
5.6. | Environmental Investment Opportunities | 133 |
5.6.1. | Opportunities in the Environmental Resources Segment | 134 |
5.6.2. | Water Utilities | 152 |
5.7. | Opportunities in the Environmental Services Segment | 154 |
5.7.1. | Waste Management | 154 |
5.7.2. | Recycling Waste Energy | 156 |
5.8. | Opportunities in the Environmental Equipment Segment | 157 |
5.8.1. | Water and Wastewater Treatment Equipment | 157 |
5.9. | Conclusion | 159 |
6. | The Way Forward | 161 |
6.1. | Overview | 161 |
6.2. | Global and Regional Economic Growth Outlook | 163 |
6.3. | Global Energy Demand Forecasts | 165 |
6.3.1. | Sectoral Assessment | 169 |
6.4. | Options for Promoting Clean Technology Business | 170 |
6.4.1. | Government Policy Actions | 170 |
6.4.2. | Financing issues | 178 |
6.4.3. | The role of the private sector | 179 |
6.5. | Conclusion | 180 |
| Appendices | 183 |
| References | 199 |