Oman updated its net-zero roadmap, boosting green hydrogen, renewable investments, carbon markets, and sustainable economic growth by 2050.
Oman has unveiled a revised and updated roadmap for achieving net-zero emissions by 2050, reinforcing its commitment to global climate action and positioning itself as a regional leader in green hydrogen and renewable energy. This strategic move, spearheaded by the Ministry of Energy and Minerals through the Oman Centre for Net-Zero, is a critical component of Oman Vision 2040, aiming to foster a resilient, sustainable, and low-carbon economy.
The updated plan stems from a realistic assessment of emission trends, recognizing that without intervention, total greenhouse gas emissions, which stood at approximately 94 million tonnes of carbon dioxide equivalent in 2024, are projected to rise to 127 million tonnes by 2050. The primary contributors to these emissions are the oil and gas, transport, and electricity sectors, accounting for about 70 percent of national emissions. The revised strategy outlines reduction priorities aligned with the national economy, identifies necessary enablers and financing mechanisms, and explores opportunities for a low-carbon transition.
A key event in this roadmap is the establishment of a comprehensive regulatory framework for carbon markets. This framework is designed to convert a targeted 33 percent emission reduction by 2035 into verifiable, tradable, and investable carbon credits. This mechanism aims to attract significant international and private investment into mitigation and adaptation projects across seven key sectors, thereby cementing Oman's position as a reliable supplier of high-integrity carbon credits in global markets.
The economic impacts of this transition are projected to be substantial and overwhelmingly positive. The net-zero pathway is expected to contribute an additional 50 percent to Oman's GDP by 2050, primarily driven by investments in green hydrogen and renewable energy. Oman, blessed with abundant solar and wind resources, is actively positioning itself to develop a robust green hydrogen export economy, attracting foreign investment and creating thousands of skilled jobs. The strategy also anticipates the creation of 20-30 percent more jobs, particularly in the renewable energy and hydrogen sectors, supported by upskilling and reskilling initiatives for Omani citizens. While the transition will require an estimated USD 190-230 billion in capital investment by 2050, the private sector is expected to finance 70-80 percent of this expenditure.
Geopolitically, Oman's commitment to net-zero enhances its global standing and leadership in climate action, aligning with the objectives of the Paris Agreement. The country's ambition to become a regional hub for green hydrogen and renewable energy strengthens its strategic importance in the evolving global energy landscape.
From an industry-specific perspective, the energy sector is undergoing a profound transformation. Policies target a significant increase in renewable energy production, aiming for at least 10 percent by the end of 2026, rising to 60-70 percent by 2040, and 90-100 percent by 2050. The strategy emphasizes energy efficiency, electrification, and the deployment of renewable energy sources like solar and wind, alongside battery technologies, sustainable hydrogen, and carbon capture and storage (CCS). The oil and gas sector, while maintaining production levels and reserve stability in the short term, is also focused on operational safety and exploring new concession areas, even as the nation diversifies its energy mix. This "orderly transition" pathway balances economic development with environmental goals, prioritizing cost-effective and scalable solutions to achieve a sustainable and prosperous future for Oman.
