The Circular Carbon Economy Index has given Saudi Arabia a tool to engage with the energy
transition in a solutions-oriented way. KAPSARC President Fahad Alajlan shares more.
- Can you share more about KAPSARC’s Circular Carbon Economy Index project and how it is helping to tackle future energy challenges?
The Circular Carbon Economy (CCE) Index was devised by KAPSARC to measure how major countries, including G20 nations, are positioned when it comes to their energy transition journey. The index utilises a comprehensive framework that is technology-agnostic and aligned with the Paris Agreement climate goals. This measures and benchmarks major economies to help energy and climate policymakers, as well as other stakeholders compare country performance and how they can realise their unique pathways to their net-zero ambitions, while factoring in their economic development and national circumstances.
- What are your views on Southeast Asia’s transition towards a net zero future?
Given that future economic growth and associated energy demand will be concentrated in Asia, especially Southeast Asia, it is critical that the region manages its transition towards a net zero future. However, enabling this economic growth requires energy security and affordability. Thus, it is important to bring down the cost of technology towards emissions abatement. This is especially so for hydrocarbon sources which will continue to play a major role over the next two decades and beyond.
- What do you think are the opportunities and challenges in facilitating green financing for energy infrastructure developments?
There are many opportunities to focus on bringing down the cost of emissions abatement technology such as carbon capture and storage (CCS) and direct air capture (DAC). Green financing will be essential to deploy those technologies at scale, which will help bring costs down. On the challenges, it is imperative that we move away from the narrow focus on renewables and look at all options. We need more investment in all forms of energy in order to have a smooth energy transition, instead of the volatility we have experienced over the last 12 months. Infrastructure for new forms of energy, especially hydrogen, will be essential especially in energy-importing regions such as Southeast Asia.
- How is KAPSARC facilitating dialogue on balancing energy security and sustainability, including in Asia?
KAPSARC has authored several research papers and projects that focus on the energy transition, oil and gas investment, electric vehicles, energy mix and hydrogen, with a special focus on Asia including China, India and Japan. We have also held many events, conferences and workshops dedicated to these topics, to share knowledge and different perspectives.
Currently, we are working on several new projects including climate policy, critical minerals and rare earth metals, with a focus on energy security as the energy transition advances.
- How is KAPSARC’s research and expertise in the global energy landscape helping to shape “A Resilient and Sustainable Energy Future”?
We are very focused on resilience, especially in the aftermath of COVID-19 and the volatility in commodity markets. First, all of our research is data-driven. We also ensure that this includes resilience, and have tried to quantify that resilience and reliability. For example, when discussing spare capacity, this used to be taken for granted but no one examined the impact.
KAPSARC looked at the spare capacity of Organization of the Petroleum Exporting Countries (OPEC) members and tried to quantify this value to the global economy, which the paper estimated at US$500 billion. This approach is critical in a world where volatility has an economic but also social cost. So as we chart the pathways to net zero, we are continuously looking for new ways to ensure our research helps policymakers address not just climate change, but also energy security and affordability.
About Fahad Alajlan, President, KAPSARC:
Mr Fahad Alajlan was appointed as the President of King Abdullah Petroleum Studies and Research Center (KAPSARC) in August 2021.
Prior to joining KAPSARC, Fahad held many senior roles across both government and the corporate world. In 2020, Fahad was also appointed as head of the Circular Carbon Economy National Program, which aims to manage Saudi Arabia’s emissions while creating economic value.
In 2019, he held the position of Director of the Hydrocarbon Sustainability Program at the Ministry of Energy, where he was responsible for looking at the long-term energy trends plus their impact on global energy markets, with special emphasis on the demand for oil and gas.
Before this, Fahad worked at the Ministry of Economy and Planning, where he advised on energy markets, policy, industry trends, and the petrochemical sector. In addition, to the above responsibilities, his experience spans several senior roles in operations, corporate strategy, and investment planning, as well as mergers and acquisitions at Saudi Aramco, where he served for 15 years.
As KAPSARC president, Fahad will build on the momentum the Center has enjoyed while supporting the Saudi energy ecosystem in introducing the Circular Carbon Economy and build on the Think 20 (T20) engagement groups developed during the Saudi G20 2020 presidency. Fahad holds a BSc. in Mechanical Engineering from North Carolina State University and an MBA from Stanford University in California.
KAPSARC is an advisory think tank within global energy economics and sustainability providing services to entities and authorities in the Saudi energy sector. From its Riyadh base, in one of the world’s most vital energy-producing regions, KAPSARC develops economic frameworks to help achieve effective alignment between energy policy objectives and outcomes.
It brings together an international group of researchers with over 156 experts from more than 15 different nationalities. KAPSARC researchers collaborate with leading regional and international research centres, public policy organisations, and regional and local industry and government institutions to share knowledge, insights, and analytical frameworks.