ILO report highlights the role of Kuwait’s private sector in a just transition to a low-carbon economy

Kuwait City (ILO News) – The International Labour Organization (ILO) and the Kuwait Chamber of Commerce and Industry (KCCI) have jointly published an in-depth report highlighting the vital contribution of the private sector in driving Kuwait’s shift toward a low-carbon economy. The report, developed through extensive research and stakeholder consultations, provides key insights into existing challenges, opportunities, and policy recommendations to accelerate private sector engagement in climate action.

Kuwait’s economy, heavily reliant on the oil and gas sector (47% of GDP), faces mounting environmental challenges, including extreme heatwaves, dust storms, and rising sea levels. As part of Kuwait’s National Vision 2035 and its commitments under the Paris Agreement, the government is revising its Nationally Determined Contributions (NDCs) this year. The study aims to ensure that private sector contributions are recognized and integrated into this process.

The report identifies four main pillars that require urgent attention:

1. Comprehensive Assessment of NDCs and national policies – The study highlights the need for a structured roadmap to achieve Kuwait's climate goals, with stronger private sector engagement in greenhouse gas (GHG) emissions reduction and adaptation strategies.
2. Awareness, challenges, and requirements of the private sector – While large enterprises show growing awareness of sustainability policies, SMEs face financial and logistical barriers in adopting low-carbon technologies. Many businesses recognize the need for more information, training, and support to implement sustainable practices.
3. Effectiveness of government policy tools – The private sector emphasizes the need for targeted incentives, subsidies, and financial support to facilitate investment in low-carbon technologies. SMEs, in particular, require policy frameworks that enable access to funding and technical expertise.
4. Public–private communication channels – The study underscores the importance of structured dialogue mechanisms to align private sector efforts with national sustainability goals. Establishing effective communication platforms will be crucial for enhancing collaboration and policy implementation.

Stakeholders consulted during the study voiced concerns over the economic impact of climate change on their businesses. Many companies see sustainability as an opportunity but require clearer guidance, regulatory support, and incentives to drive meaningful action. The report calls for strengthened collaboration between the private sector and the government to co-design policies and initiatives that encourage green investments, particularly for SMEs.

To ensure the report reflects the perspectives of key stakeholders, a validation workshop was held, bringing together private sector representatives and financial institutions. Feedback from this session was incorporated into the final document, reinforcing the need for a just transition that considers both economic and environmental sustainability.

The ILO and KCCI will continue working closely with policymakers and businesses to advance climate resilience strategies. By fostering an inclusive approach, Kuwait’s private sector can play a pivotal role in achieving the country’s sustainability ambitions while ensuring long-term economic growth.