GCC energy players urged to adopt product-level carbon accounting

World Future Energy Summit, and Strategy& Middle East have jointly published a new report titled "Rethinking Corporate Decarbonization: From Enterprise Targets to Product Strategies". Strategy& Middle East is part of the PwC network.

The report assures that carbon accounting will give companies a competitive advantage.

“Shifting to product-level carbon accounting offers GCC energy players several strategic advantages, such as enabling tailored emissions reductions to meet market standards, improving compliance with global policies and enhancing product transparency to build customer trust and reputation. Additionally, it establishes flexibility for adapting to shifting policies and market dynamics, ensuring long-term resilience”, the report says.

Implementing a product-level carbon accounting strategy presents significant challenges. Many energy companies in the GCC have yet to establish comprehensive carbon accounting policies at the corporate level, let alone extend these frameworks to individual products.

Additionally, several GCC nations are still in the process of shaping their regulatory and legislative frameworks for carbon emissions. Accurate allocation of emissions from shared facilities, particularly in complex operations, requires robust methodologies and extensive data management, adding further complexity to the process.

Therefore GCC energy players must:

• Develop, codify and deploy robust product-level carbon accounting frameworks that align with global regulations.
• Invest in advanced automation and data management systems for accurate emissions reporting and real-time policy compliance.
• Focus decarbonisation efforts on products exported to high-regulation markets, ensuring compliance and competitive advantage.
• Investing in capabilities to continuously track and respond to shifting carbon policies globally, ensuring adaptability and leadership.

“This marks a pivotal moment for energy players. Setting broad corporate emissions targets is no longer sufficient. By adopting product-level decarbonisation, GCC energy companies can transform regulatory pressures into growth opportunities, securing their position as leaders in the global energy transition,” said James Thomas, partner at Strategy& Middle East.

“GCC energy companies have a unique opportunity to lead by example, leveraging innovative decarbonisation strategies to align with global demands. This transition will not only safeguard market access but also position them as pioneers in the low-carbon economy,” added Leen AlSebai, general manager of RX Middle East and head of the World Future Energy Summit.