• Joint report by World Future Energy Summit and Strategy& Middle East recommends four strategic steps for GCC energy players to lead decarbonization efforts

Abu Dhabi, UAE: As global policies tighten to reduce greenhouse gas emissions, energy companies face increasing pressure to transition from broad reduction targets to precise strategies which address the carbon footprint of individual products. This requires a complete rethink of how emissions are measured, reported, and mitigated.

For GCC energy companies, this presents both an opportunity and a challenge, as their relatively lower-carbon intense products offer a competitive edge to differentiate themselves in increasingly carbon-conscious global markets, according to a new report titled "Rethinking Corporate Decarbonization: From Enterprise Targets to Product Strategies," a collaboration between the World Future Energy Summit, and Strategy& Middle East, part of the PwC network.

Major energy players in the GCC are now obligated to report their overall carbon emissions - as part of national biennial carbon inventory submissions - under UNFCCC guidelines. However, national and regional carbon policies are evolving; and energy products often fall under the scrutiny of policies developed far beyond their country of production.

New carbon policies and regulatory frameworks are increasingly emphasizing the carbon footprint of products. With regulations such as the EU’s Carbon Border Adjustment Mechanism (CBAM) mandating full carbon transparency at the product level, energy companies must rethink their strategies to stay competitive. This shift reflects demand for transparency regarding the emissions associated with or embedded in individual products along their entire value chain, from extraction of raw materials, through processing, manufacturing, logistics and even end-of-life.

“This marks a pivotal moment for energy players. Setting broad corporate emissions targets is no longer sufficient. By adopting product-level decarbonization, 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.

The report presents a 3D framework which represents a real-time view of the latest global policies impacting sectors and products. It enables GCC energy companies to align carbon accounting and emissions mitigation efforts with regulatory demands and market expectations. The approach helps companies respond dynamically to policy shifts and stakeholder demands, positioning them ahead of competitors who adhere to traditional enterprise-level emissions goals.

“GCC energy companies have a unique opportunity to lead by example, leveraging innovative decarbonization 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.

Carbon accounting as a source of 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.

Key actions to transition to product-level carbon accounting

However, the report notes that implementing a product-level carbon accounting strategy is not without its challenges. Many GCC energy players have yet to fully codify and deploy carbon accounting policies at the corporate level, let alone for individual products.

Several GCC countries are still developing their regulatory and legislative agenda for carbon emissions. Additionally, robust methodologies and significant data management are needed to accurately allocate emissions from shared facilities, particularly in complex operations

To mitigate these challenges and seize opportunities, the report outlines four critical dimensions for energy companies to focus on. Specifically, GCC energy players must:

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

The Path Forward

As the GCC continues to position itself as a global energy leader, transitioning to product-level decarbonization represents a pivotal opportunity to lead by example. By taking these steps now, GCC energy companies will be well-positioned to navigate future changes, fostering resilience and growth in a carbon-conscious world.

Strategy& Middle East is an Insights Partner of World Future Energy Summit 2025, the foremost regional event advancing clean energy and sustainability hosted by Masdar and part of Abu Dhabi Sustainability Week. To see the full report, please visit here.

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About World Future Energy Summit 

The annual World Future Energy Summit in Abu Dhabi is a global think tank, powered by global innovation, pioneering minds, and groundbreaking insights. Bringing together government and business leaders, through its exhibitions and conferences, it showcases pioneering solutions and ground-breaking initiatives in Pathway to 1.5 C, Solar & Clean Energy, Water, EcoWASTE, Sustainable Cities, Green Finance, and eMobility.

As a global hub for business, innovation, and knowledge exchange, the World Future Energy Summit inspires the advancement and transfer of ideas, technologies, and investment across borders and between the public and private sectors worldwide. The exhibition and industry conferences help stimulate sustainable growth for all stakeholders. For more information, please visit www.worldfutureenergysummit.com

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About Strategy& 

Strategy& is a global strategy consulting business uniquely positioned to help deliver your best future: one that is built on differentiation from the inside out and tailored exactly to you. As part of PwC, we’re building the winning systems that are at the heart of growth every day. We combine our powerful foresight with this tangible know-how, technology, and scale to help you create a better, more transformative strategy from day one. 

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