First Update of the Second Nationally Determined Contribution

1.1. Introduction ......................................................................................................................................................... 2

1.2 Geographical and Climate Profile ................................................................................................................... 2

1.3. National Circumstances ..................................................................................................................................... 3

1.4. Updated 2nd NDC Highlights ........................................................................................................................... 3

1.5. Stakeholder Engagement .................................................................................................................................. 4 2. Adaptation and Resilience ....................................................................................................... 5

2.1. Climate Vulnerability ......................................................................................................................................... 5

2.2. Climate Sensitive Sectors .................................................................................................................................. 7

2.2.1. Water Resources ................................................................................................................................................. 7

2.2.2. Fisheries and Marine Resources ...................................................................................................................... 7

2.2.3. Agriculture and Allied Sectors .......................................................................................................................... 8

2.2.4. Coastal Sector ...................................................................................................................................................... 9

2.2.5. Urban and Infrastructure Sector ....................................................................................................................... 9

2.2.6. Public Health ........................................................................................................................................................ 9

2.3. Adaptation Measures ......................................................................................................................................... 10 3. Mitigation Pathways ................................................................................................................. 18

3.1. Updating the Baseline Year ............................................................................................................................... 18

3.2. Setting the Business-As-Usual Scenario .......................................................................................................... 19

3.3. Wide-Ranging Scope ......................................................................................................................................... 20

3.4. Progression of Mitigation Targets ................................................................................................................... 20

3.5. Mitigation Targets and Pathways Per Sector ................................................................................................. 21

3.5.1. Power .................................................................................................................................................................... 22

3.5.2. Oil & Gas ............................................................................................................................................................... 23

3.5.3. Industry ................................................................................................................................................................. 25

3.5.4. Transport .............................................................................................................................................................. 26

3.6. Economic Diversification and Co-benefits .................................................................................................... 28

3.6.1. Economic Diversification ................................................................................................................................... 28

3.6.2. Co-Benefits ........................................................................................................................................................... 28 4. Implementation Modalities ..................................................................................................... 29

4.1. Nationwide Strategic Programs .................................................................................................................... 29

4.2. Institutional Arrangements ............................................................................................................................. 31

4.3. Sustainable Development Goals .................................................................................................................. 33

4.4. Capacity Building .............................................................................................................................................. 33

4.5. Technology Development and Innovation Progression ........................................................................ 34

4.6. Financial Requirements ................................................................................................................................... 34

4.6.1. Domestic Public and Private Investments .................................................................................................. 35

4.6.2. Climate Finance .................................................................................................................................................. 35

4.7. Decent and Sustainable Life for All .............................................................................................................. 37

4.8. National MRV Tracking systems .................................................................................................................... 37

4.9. Alignment with International Frameworks ................................................................................................ 38 5. Information Necessary for Clarity, Transparency, And Understanding of The Third Update of the Second NDC .......................................................................................................................... 38 1.National Context

1.1. Introduction 2023 The Sultanate of Oman, situated in a region highly vulnerable to climate change, faces escalating risks. These risks include rising temperatures, prolonged periods of high humidity, sea-level rise and an increased likelihood of extreme weather events such as tropical cyclones, heatwaves, intense rainfall and extended droughts, as underscored in Oman's vulnerability context according to the IPCC AR6 report. Moreover, much of Oman's population, infrastructure, and economic activities are located in coastal zones, making the Sultanate more vulnerable to sea-level rise, saltwater intrusion, and more frequent extreme weather events. The future increase in temperature in the Arabian Peninsula, as projected by the 6th Assessment Report (AR6), is a cause for concern. The report indicates that if global temperatures continue to rise, the temperature threshold of human survivability could be exceeded in many parts of the world, including the Arabian Peninsula. The AR6 report projects that under the high-emissions scenario of global warming ('SSP5-8.5') [1] , average temperatures in Oman could increase by 4 to 5°C by the end of the century compared to the reference period of 1995-2014. This temperature increase will have far-reaching impacts on the environment, including increased water scarcity and decreased crop yields. Moreover, the temperature increase will also significantly impact human health and well-being, particularly for vulnerable populations such as the elderly, children, and people with existing health conditions. The temperature rise will also exacerbate existing problems, such as air pollution, and increase the risk of heat-related illnesses. The Sultanate of Oman recognizes the urgency of taking decisive action and is committed to achieving the Paris Global Goal of limiting global temperature increase to well below 2°C above pre-industrial levels. The country is also actively pursuing additional efforts to achieve the more ambitious target of 1.5°C above pre-industrial levels, as recommended by the IPCC AR6.

1.2. Geographical and Climate Profile The Sultanate of Oman is situated in the southeastern part of the Arabian Peninsula, straddling the Tropic of Cancer and spanning latitudes from approximately 16°40´N to 26°20´N and longitudes from about 51°50´E to 59°50´E. It covers a total land area of approximately 309,500 square kilometers and boasts a diverse landscape, featuring mountain ranges, arid deserts, and fertile plains. Oman's extensive coastline, which stretches for approximately 3,165 kilometers, borders the Arabian Gulf, the Sea of Oman, and the Arabian Sea. This coastal terrain varies significantly, from steep 40-meter-high cliffs near Musandam in the far north, to shallow sandy beaches with occasional inlets, lagoons, and mangroves in the Al Batinah governorates along the Sea of Oman. The mountainous regions occupy approximately 15% of Oman's territory, with the Hajar mountains in the north extending in a 700-kilometer arc from Musandam in the north to Ras Al Hadd in the east. Jebel Akhdar, part of the northern Oman Mountains, includes Jabal Shams, the highest peak, which rises to 3,075 meters above sea level. In the southwestern part of Oman, the Dhofar Mountains feature peaks ranging from 1,000 to 2,000 meters above sea level. Oman's climate is arid according to the Köppen-Geiger classification system. This classification results from the interplay between the country's geographical features and the atmospheric circulation patterns in the region spanning 10°–50°N in Eurasia. Oman's extensive north-to-south stretch and diverse topography, give rise to a range of climatic conditions at local scales. These variations encompass the scorching summer heat of the Rub al Khali desert in the southern Arabian Peninsula to the more temperate climate of the Hajar mountains in the north. This translates into an array of climatic conditions, ranging from hyper-arid (receiving less than 100 mm of rainfall annually) to semi-arid (experiencing 250–500 mm of rainfall annually). These extremes, coupled with varying temperatures, have a profound influence on Oman's vegetation distribution and abundance. Periodically, Oman is subjected to extreme weather events associated with tropical cyclones originating in the northern Indian Ocean and the Arabian Sea. Over the past few decades, Oman has encountered destructive tropical depressions, tropical cyclonic storms, and severe cyclonic storms that have advanced towards its territory. These meteorological disturbances are usually observed during the pre-monsoon period in May and June, as well as the post-monsoon period in October and November. 1 ipcc.ch/assessment-report/ar6/ 2

1.3. National Circumstances 2023 The landmark decision made in October 2022 to transition to carbon neutrality by 2050, led by His Majesty Sultan Haitham bin Tariq, stands as a monumental milestone for Oman. This commitment signals a critical shift towards cleaner energy production and consumption, safeguarding the country's long-term sustainability while preserving the planet for future generations and shifting to a knowledge-based green economy. To reach Net-Zero by 2050, the Sultanate of Oman has defined five basic principles : Energy Environmental Economic Social Security system sustainability impact impact of supply costs Additionally, Oman has identified the most advanced decarbonization technologies that will facilitate the transition: 1 Energy and resource efficiency 2 Electrification and renewables 3 Battery electric technology 4 Sustainable hydrogen 5 Carbon capture and storage 6 Negative-emission solutions

1.4. Updated 2nd NDC Highlights More Ambitious Emission Reduction Target The government of Oman has significantly revised its target for reducing net greenhouse gas (GHG) emissions by 2030. The new target now aims for a 21% reduction from the Business-as-Usual Scenario in 2030 (7% committed, 14% conditional). This a substantial increase from the previous NDC target of 7% in total (Figure 1). This target is contingent upon several factors, including international climate financing, technology transfers, the activation of Article 6 of the Paris Agreement, and support for capacity-building programs. Oman has already identified several ongoing and upcoming projects that are set to account for the country's targeted emissions reduction by 2030. The main approach for achieving these reductions will involve the implementation of energy efficiency measures and the adoption of green electrification technologies. Oman GHG Mitigation Target Progression 2nd NDC 1st Update of the 2nd NDC 0% 5% 10% 15% 20% 25% Committed Conditional Figure 1. GHG Target Progression 3 2023 Alignment of the NDC with Oman Vision Updated Base Year for Emission 2040 and Pathway to NetZero 2050 Projection The revision of NDC targets is a critical step in aligning a Oman has adopted a bottom-up approach to country's climate action plans with broader, long-term establish an extensive national inventory using the sustainability goals. In this context, the revised NDC is Decarbonization Scenario Explorer (DSE) strategically designed to be in sync with the methodology, laying the groundwork for the implementation of three major initiatives: implementation of Net Zero 2050. The updated NDC • The 2040 Oman Vision [2] offers a comprehensive breakdown of emissions by • The Sultanate of Oman’s National Strategy for an sector and outlines strategic pathways to achieve Orderly Transition to Net Zero [3] net-zero emissions. To ensure accuracy, the process • Environmental Policy for the Energy Sector [4] adheres to the IPCC QA/QC (Quality Assurance/Quality Control) guidelines for the GHG Inventory, with ongoing efforts to update the Focus on Co-Benefits and Economic National Communication. Notably, the latest carbon Diversification emissions data from 2021 (90 Mt CO2) are now used The NDC update report provides strategic direction to as the baseline, replacing the previous 2015 data (96 climate actions as an opportunity to unlock economic Mt CO2) representing current technology processes . potential, particularly in sectors such as renewable This revised baseline covers strategies across four energy, sustainable construction, efficient pivotal sectors: industry, oil and gas, power transportation, responsible water and waste generation, and transportation. management and showcase the Sultanate Oman’s commitment to the global climate cause. Moreover, the Updated Adaptation Actions update report showcases strategic initiatives to achieve This update provides a detailed approach to better net-zero emissions by 2050, aligning its economic address vulnerabilities in specific sectors through sectors with the objectives of the Paris Agreement. strategic actions. This update reflects a commitment to adapt to the challenges posed by climate change and work towards a more sustainable and resilient future.

1.5. Stakeholder Engagement Stakeholder engagement played a crucial role in Oman's Stakeholder Engagement all relevant entities in a past efforts to plan Vision 2040 and Net Zero Strategy society-wide process included: 2050, and for successful implementation of NDC initiatives. Oman had recognized the paramount •All Government Departments through Carbon Lab: importance of involving a broad spectrum of The consultations conducted by Oman's Carbon stakeholders to ensure the comprehensive Management Lab serve as a central coordinating development and execution of its climate and body that engages all government departments and sustainability objectives. Public Sector Companies in the implementation of Vision 2040 and the Net Zero 2050 Strategy. It facilitated interagency cooperation, aligned objectives, and ensured that climate and sustainability considerations were integrated into departmental policies and actions. •Ministries: Various ministries in Oman play a pivotal role in achieving climate and sustainability targets. They are actively engaged in the planning and execution of sector-specific initiatives by the Environment Authority, Ministry of Energy and Minerals, Ministry of Commercial, Industrial & Investment Promotion, Ministry of Agriculture and Fisheries Wealth, Ministry of Economy, Ministry of Finance, and Ministry of Transport and Communications and Information Technology have collaborated to meet climate and sustainability goals. 2 mof.gov.om/pdf/Vision_Documents_En.pdf 3 ea.gov.om/media/aaslyc3l/oman-net-zero-report-2022_screen.pdf 4 https://andp.unescwa.org/sites/default/files/2022-12/environmental-policy-document.pdf 4 2023 •Banks and Private Sectors: The involvement of public financial institutions , such as the Ministry of Finance, Oman Investment Authority, and the Central Bank in combination with private sector entities, are essential for financing and implementing climate projects and sustainable practices. •Academic Institutes: Oman's academic institutions such as Sultan Qaboos University play a crucial role in research and innovation in climate science. Collaboration with such an institution helps ensure Oman's climate strategies are backed by well-informed personnel and expertise. •Non-Governmental Organizations (NGOs): NGOs, environmental organizations, and civil society groups provide valuable perspectives, awareness, community mobilization , and contributing to the success of environmental and climate related projects. 2. Adaptation and Resilience

2.1. Climate Vulnerability The Sultanate of Oman faces significant challenges associated with climate change because of its hot and arid desert climate and its location within a region already experiencing the effects of climate change. Oman's temperature patterns are strongly influenced by various air masses affecting the Arabian Peninsula. During winter, the Polar Continental air mass brings cold temperatures and high pressure, while in summer, the Tropical Continental air mass brings extreme heat and dryness. Monthly average temperatures typically range from 10°C to 30°C (Figure 2). Since the year 1900 , Oman has experienced a consistent increase in its average temperature. Between 1901 and 2020, Oman’s temperature has increased with an average of 1.4°C (2.5°F) , surpassing the global average temperature increase of 1°C (1.8°F) during the same period [5] (Figure 3). Monthly Climatology of Min-Temperature, Mean- Observed Climatology of Mean-Temperature 1991-2020 Temperature, Max-Temperature & Precipitation 1991-2020 Oman Oman 42ºC 12 mm 36ºC 10 mm 30ºC 8 mm Temperature (ºC) Precipitation 24ºC 6 mm 18ºC 4 mm 12ºC 2 mm 6ºC 0 mm Ja Fe ar Ap ay n l Ju g p Oct ov De c n b M r M Ju Au Se N TEMPERATURE (°C) Min-Temperature Mean-Temperature Max-Temperature Precipitation -50 -40 -30 -20 -10 0 10 20 30 40 50 Figure 2: Monthly temperature & precipitation, Figure 3: Observed Mean Temperature, Oman, world bank climatology Oman, world bank climatology 5 climateknowledgeportal.worldbank.org/country/oman/heat-risk 5 2023 The mean temperature in Oman is projected to continue to rise in the future. The Intergovernmental Panel on Climate Change (IPCC) projects that the average annual temperature in Oman could increase by 2.6°C (4.7°F) by 2100 under a high emissions scenario Projected Min-Temperature Anomaly for 2020-2039 Oman; (Reference Periond: 1995-2014), SSP2-4.5 & SSP5-8.5, Multi- Model Ensemble 3 2 1 0 -1 TEMPERATURE (°C) -2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 0 1 2 3 4 5 6 7 8 9 10 11 12 SSP5-8.5 SSP2-4.5 Figure 4. Projected Temperature in Oman Representing a slight decrease since 1900, the average annual precipitation in Oman ranges from 80 mm to 100 mm. The reasons may be climate change related, causing the Arabian Peninsula to become drier. Additionally, it is anticipated that the average annual precipitation in Oman will continue to decrease in the future, which will have a significant impact on agriculture and water resources (Figure 5) Projected Precipitation Anomaly for 2020-2039 Oman; (Reference Periond: 1995-2014), SSP2-4.5 & SSP5-8.5, Multi- Model Ensemble 25 20 15 10 5 PRECIPITATION (MM) 0 -1000 -800 -600 -400 -200 0 200 400 600 800 1000 -5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec SSP5-8.5 SSP2-4.5 Figure 5. Projected precipitation in Oman 6 2023 Albeit Oman’s precipitation annual average continues to decrease, the varying frequency and intensity of rainfall has been causing extreme weather events, such as floodings and cyclones. Notably, the recent occurrence of the Shaheen Cyclone on October 3rd, 2021, in coastal districts has highlighted the repercussions of this climatic shift. The cyclone, categorized as a 1st degree event, brought about substantial rainfall and a significant surge in sea waves, reaching up to 12 meters. The aftermath of the Shaheen Cyclone has been marked by severe human and financial consequences. Official reports indicate that the estimated financial impact of the cyclone exceeds 200 million OMR, underscoring the tangible economic toll associated with such climatic occurrences. As precipitation patterns continue to evolve, it becomes imperative for stakeholders to address the escalating risks posed by these extreme weather events in order to mitigate their adverse effects on both human and economic fronts. While Oman expects sporadic episodes of rainfall to become more intense, the overall average rainfall remains uncertain. This uncertainty is coupled with a higher likelihood of prolonged dry spells, exacerbating water scarcity issues, increasing drought intensity, and stressing ecosystems. Careful water resource management and agricultural practices will be critical to mitigate the effects of changing precipitation patterns, ensure food and water security, and address the growing challenges posed by increased drought severity.

2.2. Climate Sensitive Sectors

2.2.1. Water Resources Oman’s water resources are primarily derived from groundwater and surface water. To meet the growing water demand for household consumption and other uses, Oman has implemented desalination and wastewater treatment plants. However, the country's water consumption still exceeds the resources available from renewable sources by approximately 25%. In regions where groundwater storage is scarce, there exists a potential threat to critical resources such as domestic water supplies and other essentials. Increased water scarcity will impact families' livelihoods, particularly in farming communities. In coastal regions, excessive groundwater extraction has led to the intrusion of saline water, negatively impacting agricultural production and the environment. Rising sea-levels are impacting groundwater quality in critical aquifers due to salinization. Compared to other GCC countries, Oman’s per capita freshwater availability and consumption ranking is among the lowest [6] . For instance, in the Qurm district of Muscat, the average annual household water consumption is estimated to be 519 cubic meters per year, while in the Seeb district, it stands at 440 cubic meters per year. These figures underscore the significant water consumption patterns in the GCC region, with Oman demonstrating relatively lower usage compared to its counterparts. Oman is highly susceptible to extreme weather pattern natural disasters. Between 2000 and 2014, there was a discernible change in the severity of extreme rainfall events across the country, particularly in areas like Adam, Masirah, and Thumrait. These changing rainfall patterns pose a significant risk for future flooding. As overflowing waterways become more frequent and cause greater erosion, flooding and extensive infrastructural damage is more likely to occur. One significant threat to Oman's groundwater quality stems from dynamic sea-level changes and thermal ocean expansion. Even conservative AR6 projections of sea-level rise present substantial risks to the integrity of Oman's aquifers. A good example of this can be observed in the Jamma aquifer located in south Al-Batinah, a region vital for agricultural activities. By the year 2070, even under low estimates of sea-level rise, approximately 8 square kilometers of agricultural land are expected to become salinized, rendering it unsuitable for cultivation. Additionally, nearly 2 billion cubic meters of groundwater will become unsuitable for irrigation, significantly affecting agricultural productivity 6 water.fanack.com/oman/water-challenges-oman/ 7

2.2.2. Fisheries and Marine Resources 2023 With a rich cultural and long history, fishing and aquaculture are two of Oman’s oldest and most significant economic industries. Prior to the discovery of Oil & Gas resources, these two old industries were important revenue generators. Although currently estimated to be only 0.5% to 2% of GDP, the fisheries sector is recognized as potentially important to the future of Oman. Hence, there is a need to improve overall management of the fishery sector to better prepare it for expected climatic impacts. The Sultanate has committed more than 1.2 billion USD to the fishery sector, mainly for building resilience in the sector. Additionally, Oman has expanded the area of natural reserves, in compliance with international laws, in order to be better utilized for economic investment. Recent changes in the Western Arabian Sea have raised concerns about potential ecological consequences for Oman's marine biodiversity and commercial fisheries. Over the past five decades, significant shifts in the physical and chemical characteristics of this region have been observed. The gradual rise in ocean temperatures has reduced primary production due to increased stratification in the upper water column. Sea surface temperatures during the summer have risen by over 2°C since 1960 and by about 1°C at depths of 300 meters [7]. Additionally, salinity levels have been on the rise, increasing by approximately 0.1 parts per thousand per decade since 1950. These changes, coupled with increased acidity (resulting in a drop in pH), declining nitrate concentrations, reduced dissolved oxygen levels, and decreased chlorophyll-a concentration, have resulted in fish kill incidents and habitat compression for pelagic fishes. The yields of yellowfin tuna and sardines in Omani waters have declined due to these changes. Catch Per Unit Effort (CPUE) data for both species indicate a significant reduction in recent decades. According to IPCC AR6 projections, the Arabian Sea is expected to see yield declines ranging from approximately 40% to 65%, while Oman's Exclusive Economic Zone (EEZ) is projected to experience reductions ranging from 28% to 68%.

2.2.3. Agriculture and Allied Sectors In Oman, the agricultural industry plays a key role in the socioeconomic and developmental advancement of rural communities. The main agricultural products are date palms, fruits, perennial fodder, vegetables, and field crops. About 72,000 hectares of land, or 0.2% of the nation's total land area is irrigated and 72% of all farms are small farms. The agricultural sector in Oman must be sustained over the long term in order to protect the country's food supply as well as provide jobs, fight poverty, protect the most vulnerable populations including children, and raise living conditions in rural areas. 3.2 million tonnes of agriculture were produced in 2022 , with a 5.5 percent average annual growth rate from 2015 to 2021. According to the Global Food Security Index (GFSI), the Sultanate of Oman is ranked third among Arab nations and among the top 35 countries overall. Earlier, most of the water for irrigation was obtained through the “Aflaj Irrigation Systems”, which is a United Nations Educational, Scientific and Cultural Organization (UNESCO) World Heritage system that reflects the historical water management practices. However, the water table along the Al Batinah coast, Al Sharqiyah region, has dramatically dropped, leading to a spike in the salinity of the wells and a considerable deterioration in water quality. This is mainly due to land cultivation occurring too close to the sea, a rise in sea levels and the extraction of well water surpassing the rate at which it can be naturally replenished. Climate projections indicate that by mid-to-late century, under high emission scenarios, extreme heat will adversely affect crop growth rates. This scenario is primarily characterized by escalating temperatures and diminished rainfall, intensifying the existing challenges of water scarcity. In 2017 and 2018, Oman was affected by drought conditions, which had an impact on agriculture and water supplies. The Food and Agriculture Organization (FAO) and the Sultanate of Oman have started a Green Climate Fund (GCF) preparedness program with the primary goal of strengthening the development of prioritized agriculture and water-related projects and concept notes. Complicating matters, the COVID-19 epidemic has caused supply chain disruptions, turning Oman’s focus to strengthening its food security and the resilience of its food production. Oman is investing heavily in surface water harvesting infrastructure in order to boost water availability and to enhance water resource management. This includes building dams, reservoirs, and other water storage facilities to capture and store rainwater, especially during the rainy season, for use during drier periods. 7 doi.org/10.3390/cli8040050 8

2.2.4. Coastal Sector 2023 In recent decades, Oman's coastal districts have gradually seen sea levels increase at a pace of 0.18 to 0.23 centimeters per year [8], which is predominantly caused by climate change. According to IPCC AR6 forecasts, this trend foretells an increase in the frequency of high tide events along its coastline, exacerbating the technical difficulties faced by coastal populations and urban infrastructure. Furthermore, the climate change scenario of increased cyclone intensity in the region exacerbates these challenges. As a result, Oman has to deal with a variety of difficulties, such as coastline erosion, increasing groundwater salinity, and a higher danger of flooding in low-lying urban areas. The Sultanate of Oman is implementing proactive coastal defense tactics and creating extensive, long-term planning projects that consider the changing climate dynamics, especially the increased cyclone risk.

2.2.5. Urban and Infrastructure Sector Oman's urban areas and tourist attractions are characterized by a dense population and a thriving commerce and industrial sector. These areas are increasingly vulnerable to major climate events. Recent cyclonic events, including Cyclone Gonu in 2007, Phet in 2010, Mekunu in 2018, and Shaheen Cyclone in 2021 resulted in significant loss of life, extensive infrastructural damage, and considerable economic setbacks. Urban flooding, a recurring issue in areas including the capital Muscat, often results from rapid urbanization and inadequate drainage systems, exacerbated by intense rainfall events. The wadis in Oman, natural channels carved in the terrain, occasionally experience flash floods, especially during torrential rains, posing threats to adjoining settlements. Coastal cities, such as Salalah, have witnessed the devastating impacts of storm surges, particularly during events like Cyclone Mekunu in 2018. Additionally, these cities' key infrastructures sustained severe damage, rendering multiple roads, electricity towers, water and wastewater networks, health centers, and communication infrastructure inoperable. This underscores the imperative to enhance the resilience of overall infrastructures while also expanding their accessibility to the entire population. The heat island effect, more pronounced in rapidly expanding urban centers like Sohar, elevates local temperatures due to concrete structures and decreased vegetation, further intensifying the naturally occurring heatwaves in the region. In addition, the air quality in major cities is also deteriorating due to the dust storms. These climate stressors, interplaying uniquely in each urban area, underscore the necessity for comprehensive adaptive measures. The Al-Batinah region is predicted to be the most vulnerable. Oman's sensitivity to a variety of climate-related problems, makes climate threats to urban areas a substantial and varied concern.

2.2.6. Public Health As a consequence of the ongoing global warming trend, Oman faces an elevated risk of heat-related ailments, including heat exhaustion and heatstroke, owing to the intensification of high temperatures. Additionally, due to climate-related changes, disease vectors' habitat ranges are expanding, especially for mosquitoes, which increases vulnerability to vector-borne illnesses including malaria and dengue fever, both of which are major causes of mortality among children globally. Due to the increased frequency of dust and sandstorms driven on by climate change causes, the population may experience deteriorating respiratory illnesses and cardiovascular health problems as a result of the poor air quality. The rising intensity and frequency of extreme weather events, including tropical cyclones, increase the risk of accidents, population displacement, infectious disease epidemics, and threats to the healthcare system. Beyond these obvious health dangers, it is important to give particular focus to how climate change may affect people's mental health as a result of ongoing stress, and disruptions to their way of life. When it comes to Oman’s most vulnerable groups, the children are more exposed to heat waves, as well as other health problems including chronic respiratory conditions, asthma, and cardiovascular diseases. The increasing intensity and frequency of dust storms put children at a higher risk of exposure to micro-particles and acute respiratory tract infections, and increased risk of respiratory diseases, cardiovascular diseases, and cardiopulmonary diseases.Although in terms of Crude Death Rate (CDR), Infant Mortality Rate (IMR), Under-Five Mortality Rate (U5MR), the Sultanate of Oman has made notable advancements over the previous forty years. 8 climateknowledgeportal.worldbank.org/country/oman/impacts-sea-level-rise 9

2.3. Adaptation Measures 2023 Oman affirms with Article 7 of the Paris Agreement and the Global Goal on Adaptation that adaptation is crucial for addressing the negative consequences of climate change and improving climate resilience. Oman is dedicated to strengthening its capacity for adaptation to protect its people and infrastructure given the region's vulnerability to the effects of climate change and the desert environment. With the support of the Green Climate Fund, Oman is now developing its National Adaptation Plans (NAPs). The Environmental Authority (EA) is working with the United Nations Industrial Developemnt Organization (UNIDO). Additionally, in a number of the nation's climate-sensitive sectors, adaptation measures are being planned and implemented through various programmes. A monitoring group for the execution of Oman Vision 2040 has been established featuring a strong planning framework to ensure the smooth operation of the Vision 2040. Since its establishment in January 2021, it has worked in conjunction with pertinent organizations to develop an extensive planning framework. Each organization contributes to an integrated follow-up system that includes planning, execution, monitoring, and reporting stages, playing a critical role in attaining the Vision's objectives. Several initiatives have been undertaken to achieve Oman Vision 2040, boosting the overall framework. To assure the completion of the system's components, the monitoring group is committed to effective collaboration with all concerned parties. The table below provides a detailed analysis of adaptation measures currently in place or planned by the Sultanate. These measures encompass initiatives and policy actions in climate-sensitive sectors identified in section 2.2 above. Table 1. Adaptation Measures Sector Area Current Measures Planned Measures Ministry of Regional Municipalities and Water Oman is actively planning to secure a Resources is actively developing its National consistent and sufficient water supply for Water Strategy, which is grounded in circular irrigation, even in the face of changing climatic economy principles. This strategy focuses on conditions. This strategic action is aimed at adopting water-saving technologies, bolstering the resilience of the agricultural optimizing water allocation, and promoting sector and ensuring continuous food efficient water use across various sectors, production. particularly in agriculture. The Ministry of Agriculture and Fisheries has Oman has outlined plans to implement water authorized comprehensive water irrigation pricing mechanisms that accurately reflect the management practices. This initiative aims to true cost of water use in agriculture. enhance the efficiency and sustainability of Simultaneously, the government is preparing the irrigation sector, which is crucial for to offer subsidies to efficient water users as Irrigation Requirements agriculture in the face of changing climate part of a comprehensive strategy to conditions. encourage sustainable water practices. Water Resources Recognizing the cultural significance and vital Prepare a comprehensive approach to water role of the Aflaj Irrigation System, Oman is resources management, which will be committed to its preservation and confined to and diligently implemented in all conservation. This ancient system serves as a catchments across the country. This proactive primary water source for a substantial portion measure is intended to safeguard and of the population, making its protection a top sustainably manage water resources in diverse priority. Moreover, under Royal Decree No. geographic regions. 374/1992 a national computerized well and Aflaj inventory was established to assess the quantity and quality of groundwater and its use. Oman has strategically developed twelve artificial rain seeding stations in specific regions to mitigate the impact of droughts. This proactive approach enhances water resources and helps maintain agricultural productivity during dry periods. 10 2023 Sector Area Current Measures Planned Measures Oman has initiated experimental projects to explore the use of treated water in various applications. These projects include the utilization of treated water at locations like Shakhakhit farms in Barka and the Wadi Dayqah Dam tourism development project, promoting sustainable water practices. Oman is actively promoting water Supreme Council for Planning revealed that conservation efforts, particularly through the Oman is set to invest USD 7 billion in the next adoption of micro-irrigation techniques and 20 years – averaging USD 381 million per year greenhouse technologies. These measures – to develop wastewater treatment plants and optimize water usage in agriculture and other extend sewage network lines across the sectors. country. This initiative will be carried out through the National Strategy for the Use of Tertiary-treated Wastewater 2040 program. Oman has implemented regulations and introduced the Royal Decree No. (82/1988) to control the drilling of new wells and manage the extraction of water from existing ones. such regulations will ensure the sustainable utilization of groundwater resources, considering the challenges posed by climate change. Oman is investing in the development of Water Resources wastewater treatment plants with some of these plants using membrane bioreactor technology (MBR) such as Madinat Al Sultan Qaboos and Shattie Al Qurm. Moreover, Royal Decree RD 114/2001; states that “it is prohibited to discharge hazardous waste and substance and other environmental pollutants in wadis, watercourses, groundwater recharge areas, rainwater, flood drainage system or Aflaj and their channels discharge systems.” It is also prohibited to reuse or discharge treated wastewater without obtaining a permit. Oman is developing decarbonization Promote the use of renewable energy desalination plants and is focusing on water resources for water supply, desalination, reuse through the use of renewable energy treatment, and distribution. sources. Currently, Sur desalination plant with an 80,000 m3/day capacity is the first facility of Water Sector Decarbonization its kind in the Sultanate of Oman and the wider Middle East region, to be powered by renewable electricity. 11 2023 Sector Area Current Measures Planned Measures The National Water Sector Master Plan Improve water demand management plans (2015-2040) has been developed for and reduce the gap between supply and sustainable management of water resources in demand. Improved Water Resources Oman. The plan includes a number of initiatives for water conservation, such as the promotion of water-efficient appliances and the development of rainwater harvesting systems. Management Oman Water Index is an indicator that gauges the quantity of water to meet a variety of demands, such as those for drinking, irrigating crops, industrial uses, and source sustainability measures. The water index has improved by 5%, increasing from 488 million cubic meters in 2021 to 513 million cubic meters in 2022. Oman is strengthening data quality Strengthen data management systems at the management at local Aflaj Authorities level in national level and to improve local capacities Al Dakhiliyah Governorate, is updating flood for data management, monitoring, and Awareness and hazard maps , upgrading gauge station reporting. equipment, and monitoring flash flooding threats. Monitoring Oman is implementing the Al Batinah Coastal Promote groundwater recharge through Aquifer Recharge Project through the injection treated water and establish water quality Groundwater of treated wastewater into coastal aquifers. standards for aquifers receiving treated sewage water. As well as implement a groundwater quality monitoring program. Recharge Fisheries Development of Oman (FDO) and Undertake long term climate vulnerability Oman Aquaculture Development Corporation studies within the fisheries sector to analyze (OADC) are advancing the climate-resilient the climate impacts on physiology, life cycles, fisheries management through monitoring and environment of aquaculture species. and assessing the impact of climate change on fish stocks and adjusting catch limits. FDO and Conservation of Fisheries OADC also work on preventing overfishing and protecting vulnerable species by helping Fisheries and Marine local entrepreneurs and businesses adopt sustainable fish farming. 12 2023 Sector Area Current Measures Planned Measures The Marine Science and Fisheries Centre in Facilitate greater stakeholder engagement Muscat is conducting studies on the breeding with an emphasis on the domestic and habits of fish. The center is also monitoring international large scale tuna fisheries, changes in their migration patterns caused by regional king fisheries, and high value warming waters. domestic species (like abalone and cuttlefish), which are facing the greatest economic and climatic challenges. The Marine Science and Fisheries Centre in Muscat is conducting studies on the breeding habits of fish. The center is also monitoring changes in their migration patterns caused by warming waters. Conservation of Fisheries Oman is also implementing and enforcing sustainable fishing practices to prevent overfishing, such as the use of specific net sizes, seasonal fishing bans, and restrictions on catching juvenile fish. Oman is also promoting aquaculture projects, such as Al Jazeera shrimp farm, Al Bustan fish farm to reduce pressure on the coastal fisheries. Oman is also enhancing the resilience of fishing infrastructure, such as harbors, fish markets, and processing units, to withstand Fisheries and Marine extreme weather events and rising sea levels. The Environment Authority has undertaken a nationwide survey of flora and fauna. The first MPA, the Dimaniyat Islands, formed in Formation of more MPAs in Oman to protect 2003 to protect against human activities, such the country's marine resources for future as fishing, anchoring, and the disposal of generations. waste that can harm marine life. Development of Marine Protected Areas (MPA) The Coastal Protection Strategy aims to Integrate mitigation capacities of other coastal protect Oman's coastline from the impacts of and marine ecosystems through mangroves climate change, such as rising sea levels and related Nature Based Solutions (NBS). coastal erosion. The strategy includes a number of initiatives to improve coastal infrastructure and to restore coastal ecosystems and Coastal Zone Management Oman coastal zone management Draft the blue carbon strategy for the programme's overall goal is conservation and management and restoration of the mangrove management. Hence, certain designated conservation. mangrove areas are protected zones or nature reserves. 13 2023 Sector Area Current Measures Planned Measures Oman has been developing a new act that Govern the EWS with tools needed to make aims to conserve and restore the mangroves the system more time efficient. for their ecosystem services, it also helps build climate resilience. Oman is developing an Early Warning Systems (EWS) for extreme weather events, such as cyclones or harmful algal blooms. Food security effort have been dictated by Promote sustainable agriculture by OFIC and Tanfeedh, the government initiative diversifying its agricultural activities, Food Security, Diversification tasked with bringing together various sectors cultivating climate--resilient and high-value with the goal of diversifying national income crops that have the potential to access resources. Fisheries is one of five sectors – domestic and international markets, and along with manufacturing, tourism, transport reducing reliance on traditional crops and mining – prioritized for development of Crops, and Livestock under Tanfeedh. Oman is employing treated water resources in Enforce sustainable livestock management Management collaboration with an energy investment firm, practices to control overgrazing and to OQ, to support the cultivation of fodder crops, maximize local breeding instead of livestock while concurrently implementing expansive imports. initiatives for large-scale tree planting, both in productive tree plantations and to counter desertification Long sea defense dams are being constructed Develop various governorates in rainwater Water Use Efficiency at Khor Al Rustaq in the city of Sur to prevent drainage and sewage water treatment in order the intrusion of surface saline sea water and to to target 550-600 million cubic meters/person withhold part of the Wadi waters for recharge to 650-700 million cubic meters/person - and leaching. generation of water quantity through advanced methods. The Sultanate is planning to enhance water use Agriculture efficiency in agriculture drip irrigation, efficient water delivery systems, water reuse, soil moisture conservation, and rainwater harvesting, among other practices. Oman has launched a nationwide initiative to Promote the adoption of efficient irrigation Native Tree plant 10 million natural trees, including apicals, methods, such as drip and sprinkler irrigation, acacias, and Ziziphus Spina-Christi (Sider), to to conserve water resources and ensure crops combat desertification, improve air quality, receive adequate moisture; even during and reduce temperatures in populated areas. periods of reduced rainfall. Plantation Initiatives Additionally, Million Date Palm Plantation Projects in Ibri, Nizwa, Al Safa, Rahab, and more areas have been initiated. In 2016, the Government of the Sultanate of Develop a comprehensive strategy in line with Sustainable Oman unveiled the Sustainable Agriculture the National Adaptation Plan to combat and Rural Development Strategy towards desertification, manage aquifer desalination, 2040, commonly referred to as SARDS 2040. promote soil conservation through extensive This strategic initiative is designed to offer plantation programs, and establish measures comprehensive programmatic and policy to mitigate the effects of water salinity on Agriculture Strategy direction, guiding investments in the Omani agriculture. agriculture and rural sector. The sectoral plan outlines a framework for activities spanning up to the year 2040 14 2023 Sector Area Current Measures Planned Measures Omani Agriculture Association has initiated Adopt modern agricultural technologies and projects that include smart-technology in practices including advanced irrigation Technology fields, thus reducing the overall costs of systems and improved farming techniques, to technology (Periodical Newsletter issued by boost agricultural productivity. the Ministry of Higher Education, Research and Adoption Innovation). This holistic approach fortifies Oman's agricultural sector against climate-induced challenges, while fostering sustainability and diversity. -The Sultan Haitham Smart City initiative is currently in progress, with plans for its Establish smart cities utilizing advanced Developing Smart development catering to a population of services and modern technology. approximately 100,000 residents in close proximity to Muscat. -development of Oman spatial planning Cities and Climate strategy and extensive master plans for all governorates, -development and upgrade of state of the art Resilient Infrastructure integrated road network. -Investment in construction of large numbers of storage and protection dams. -Development and upgrade of communication networks, reaching every resident in Oman. Urban areas and Infrastructure -Construction of integrated power supply network including generation plants, distribution networks. -Development of integrated water desalination and distribution networks. The Civil Aviation Authority conducts disaster Conduct vulnerability analysis to come up with Storm Surge Analysis and management studies, using tools like ATLAS scenarios for the year 2100 in order to and Storm Search, to identify flood-prone determine the degree of land flooding caused areas during tsunamis and extreme events. by rising sea levels. Inundation Modelling Coastal Vulnerability Index (CVI) has been launched to prioritize vulnerable urban areas. As part of its urban planning adaptation Develop urban transportation plans to reduce efforts, Oman is actively promoting the emissions and promote public transportation adoption of electric vehicles to reduce carbon options. These efforts aim to reduce traffic Transportation emissions. The Minister of Energy and Minerals congestion and improve air quality in urban is leading an initiative to incentivize electric areas. vehicle usage, in line with the Net Zero 2050 Planning Agenda's annual target of 0.85 tons per capita carbon emissions. These measures include integrating self-driving electric vehicles and establishing charging infrastructure to lower Oman's urban carbon footprint. 15 2023 Sector Area Current Measures Planned Measures Oman Environmental Service Holding Conduct in-depth examination of the Company (be’ah) was established by Royal governance of its Waste Management Sector Decree No. 46/2009 and was granted the with the objective of accelerating its evolution mandate and the legal status as the entity into a thriving economic sector aligned with responsible for solid waste management in the principles of a circular economy Sultanate of Oman. Be’ah is set to launch a biogas facility by 2026, the facility will convert organic waste from industrial food sources Waste Management into valuable biogas for sustainable energy. Oman is promoting secondary material use over primary resources, and is establishing a global secondary market exchange for recycled materials. Moreover, the Sultanate has also launched the National Waste Management Registry on the Environment Authority’s website. Oman is putting extended producer responsibility initiatives into place, encouraging recycling and eco-friendly product design. Oman is developing national building and Adopt Climate-resilient policies for designing National Building design codes to enhance community national building codes. resilience. These codes ensure that structures can withstand climate-related challenges, while contributing to environmental stewardship and community well-being. and Design Codes These codes will play a crucial role in ensuring that buildings and structures are built to withstand climate-related challenges like heatwaves, storms, floods, and damages with low carbon footprint The National Urban Development Strategy, Expand smart green cities (the use of designed with a forward-looking perspective innovative materials to reduce demand for spanning the next 20 years, is centered on traditional energy). achieving development objectives while fostering sustainability Urban Greening Directives The Ministry of Housing and Urban Planning developed guidelines for urban greenery with the goal of enhancing green cover and reducing the heat island's effects, with an emphasis on urban areas. Oman is accelerating the implementation of Adapt healthcare facilities for the complexity the One-Health System, which aims to achieve of upcoming climate patterns, this crucial sustainable balance and improve human, evaluation will ensure their resilience and animal, plant, and ecosystem. effectiveness. Climate-Resilient Public Health Conduct a thorough evaluation of their Health System medical facilities by the end of 2023 in order to determine how well-equipped Oman is to handle the challenges posed by climate change and how well-prepared they are to adapt to changing weather patterns 16 2023 Sector Area Current Measures Planned Measures In compliance with the royal directives of His Increase research capacity to assess the health Knowledge Majesty Sultan Haitham bin Tarik, a central consequences of climate change within the public health laboratory for all health country. disciplines has been lunched in Feb, 2023. The Expansion and lab will promote health and prevent diseases by taking a lead in laboratory science activities and supporting public health and Raise public awareness about the adverse Raising Awareness environmental conservation efforts health effects of climate change and intensify disease prevention and health promotion. Public Health -Oman has developed the standards for Develop local data driven health models Enhancing Accessibility Ambient Air Quality (AAQ). Currently there are (HUMDIX, THI etc.), improve health 3 monitoring stations installed in Rusail, monitoring, and develop preparedness and Rasisout harbor and Sohar Industrial areas. response strategies for vectors Several activities are developed in other areas such as chemical safety, food safety, occupational health and safety and injury and Resilience prevention. -Development of integrated and state of the art health system including primary, secondary and tertiary treatment facilities. National Committee for Civil Defense (NCCD) Undertake sectoral vulnerability studies and coordinates disaster preparedness and response plans agencies during emergencies. The Civil Aviation Authority performs accurate Establish effective inter-ministry, weather forecasting and employs advanced public-private SOPs, and communication techniques to predict weather patterns and channels to ensure readiness in times of extreme events adverse. Oman is currently implementing the National Invest in physical infrastructure and Emergency System which is designed to computational resources to obtain more data coordinate the response of various agencies and produce better analysis results. and provide real-time information during disasters. Disaster Preparedness Data-driven Readiness Oman has strategically established shelters equipped with essential amenities, particularly in regions that are more susceptible to cyclones and floods. This proactive approach ensures that citizens have access to safe havens during times of disasters Oman collaborates with international organizations, such as the United Nations and the World Health Organization, to learn the best practices in disaster preparedness and response Oman is working to ensure that its infrastructure; roads, buildings, communication systems, and more, can withstand extreme events. This includes designing structures that can endure flooding or cyclonic winds. Oman has invested in early warning systems that use satellite data and other technological tools to provide timely alerts to vulnerable communities. 17 3.Mitigation Pathways

3.1. Updating the baseline year 2023 In alignment with the Net Zero 2050 Strategy, Oman has shifted its NDC baseline year from the initial 2015 to the year 2021. This strategic shift was carefully considered, taking into account various factors. As seen in Figure 6 below, using a bottom-up analysis, the baseline was created by triangulating reported data on emissions, activity levels, and the energy consumption, ensuring that emissions measurements are accurate and reflect current circumstances. Additionally, projections for economic and energy sector growth were carefully re-assessed through economic modeling and energy sector analysis, providing a holistic view of emissions trends. Importantly, the baseline year update acknowledges the unique and unprecedented challenges posed by the COVID-19 pandemic, including the decline in economic activity, business closures, and the shift to remote work. All of which had a noticeable impact on emissions across various sectors. Overall, the decision to update the baseline year to 2021 emphasizes Oman's commitment to precision, transparency, and adaptability to its climate action efforts, ensuring that its NDC remains reflective of the ever-evolving global climate landscape. Baseline adjustment has also been applied for all (sub)sectors and industries to account for the COVID-19 effect using data sources such as National Transport Model, National Centre for Statistics & Information, GHG Lab Oman Vision 2040, etc. Emissions Reported emissions on a segment level where available A Baseline C B Energy balance Activity levels Energy consumption by fuel type Bottom-up calculation of the on a (sub) segment level energy and emissions based on activity levels Figure 6. Baseline Bottom-Up Analysis 18

3.2. Setting the Business-As-Usual Scenario 2023 Based on the historical patterns and observed trends, in the absence of any significant mitigation efforts or transformative actions, the Business-As-Usual (BAU) was projected from 2021 to 2050, as depicted in Figure 7 below. This BAU scenario provides a visual representation of potential outcomes if sustainable interventions are not enacted. The figure illustrates how emissions, resource consumption, and other critical indicators are likely to evolve within this timeframe, following the trajectories set by existing demographic shifts, economic growth patterns, technological advancements, and policy dynamics. In this period, without deliberate mitigation measures, emissions are likely to rise in tandem with increased industrialization, urbanization, and energy consumption. The energy sector, which includes Power, Industry, and Oil & Gas, is expected to remain a primary driver of emissions that is influenced by a growing demand for energy as economies expand. Similarly, the Transport sector may see growing emissions due to the growing number of vehicles and limited adoption of cleaner transportation technologies. The Building sector might experience an increase in emissions as urbanization continues, leading to higher demand for infrastructure and housing, which will be reflected in increased energy consumption. Agriculture, though subject to yield improvements, could still contribute to emissions due to conventional farming practices and livestock production. These projections underscore the importance of transitioning to more sustainable agricultural methods. 110 Business-as 100 -usual outlook 90 Decarbonization vs. BAU 2030, Percent 80 70 Sector 2030 2040 2050 60 50 Industry -7 -54 -89 40 Oil & Gas -17 -76 -88 30 Transport -19 -54 -100 20 Power -42 -69 -99 10 Other 0 2021 30 40 2050 Vs BAU -21% -62% -93% Figure 7. Oman's Orderly Transition to Net Zero 2050 Within this BAU framework, economic growth may elevate living standards, but it might also be accompanied by a commensurate increase in resource consumption and waste generation. Biodiversity loss and environmental degradation could intensify as ecosystems face heightened pressures. The BAU analysis depended on forecasting four main areas: 1- The population forecast: Based on the Spatial Strategy and the UN World Population Prospects for High fertility scenario 2- The GDP forecast: Based on Oman 2040 Vision document 3- Oil and Gas Production forecast: Based on the Ministry of Energy and Mineral (MEM) data and on external Global Energy forecast, which calculates production from countries based on global demand and global supply cost curve 4-The industrial forecast: Based of the Annual Industrial Statistics report (2019) 19

3.3. Wide-Ranging Scope 2023 Oman's updated NDC builds upon a foundation of economy-wide targets and a revised base year, encompassing all domestic sectors, including land use, land use changes, and forestry. The commitment extends to the comprehensive coverage of all national GHG emissions, including Carbon Dioxide (CO2), Methane (CH4), and Nitrous Oxide (N2O). Notably, the current iteration of Oman's NDC includes emissions from Fluorinated Gases (F-gasses) in the Industrial Sector only, while inventory research on these gasses is ongoing for other sectors. However, Oman plans on their inclusion for all sectors in future NDC submissions, aligning with international agreements such as the Kigali Amendment and the Montreal Protocol. Thus, Oman's regulatory framework is being updated to effectively address F-gasses emissions in all sectors, being in alignment with global best practices. Oman's NDC includes emissions from domestic aviation and shipping, which falls beyond the normal scope of an NDC, underscoring the country's commitment to mitigating these sources. It is important to note that local entities are actively contributing to the reduction of emissions in these sectors. Oman's strategies include promoting Sustainable Aviation Fuels (SAFs) and exploring the potential of green shipping corridors, which are specialized maritime routes aimed at showcasing low-emission shipping fuels and technologies. Oman's support for the decarbonization objectives outlined by the International Civil Aviation Organization (ICAO) and the International Maritime Organization (IMO) further highlights its dedication to global emissions reduction goals.

3.4. Progression of Mitigation Targets Oman has committed to achieving net-zero emissions by developing a well-balanced and systematic strategy, embracing an orderly transition pathway. Looking ahead to 2030, there is a concerning projection of a 13% increase in emissions in the industrial sector compared to the levels recorded in 2021. This uptick is primarily driven by the expansion of industrial activities, particularly in sectors like petroleum refining, petrochemicals, cement production, aluminum manufacturing, as well as iron and steel production. Within the Net Zero 2050 strategy, the Industrial sector is a focal point, as it currently contributes a significant 32% of all GHG emissions based on validated data from 2021. Addressing this growth in emissions is pivotal, as Oman strives to meet its sustainability goals and create a more environmentally responsible future. The Oil and Gas sector, renowned for its proactive stance on emissions reduction, charts a course to achieve 7% emissions cut by 2030. Anchored in cost-effective decarbonization strategies, this journey hinges on energy efficiency enhancements, the repurposing of captured natural gas, and the electrification of upstream production processes, all aiming to wield substantial influence. Anticipating a transformation in the landscape of transportation, the sector casts its aspirations towards a 3% reduction in GHG emissions by 2030. This forward-looking trajectory envisions the integration of diverse solutions such as the proliferation of Electric Vehicles (EVs), the utilization of Hydrogen Fuel Cells (HFCs) for heavy-duty vehicles, and the widespread adoption of biofuels. Collectively, these efforts form a comprehensive strategy to reduce emissions. In the power sector, fossil fuels (mainly natural gas) account for approximately 92% of power generation, which prompts for immediate transformative interventions. A notable 80% of electricity consumption is attributed to the buildings and residential sector, which anticipates surges due to population growth. As the population grows, the expansion of housing is expected to lead to a 90% increase in energy consumption by 2050. In this context, the introduction of green hydrogen, harmonized with wind and solar energy, is a critical step in addressing these challenges, as it aligns with the sectors targeted 3% reduction in emissions by 2030. 20

3.5. Mitigation Targets and Pathways Per Sector 2023 An Orderly Transition Plan In Oman’s pursuit of achieving the net-zero emissions target by 2050, Oman has structured its efforts into two key categories: Priority decarbonization measures, and system decisions and selections. The first being the most cost-effective ways to reduce emissions, the second involves making decisions that may include trade-offs in order to tackle challenging emissions sources. The identified priority decarbonization measures are expected to contribute significantly to Oman’s five objectives to reach net-zero, representing half of the total emission reduction Oman aims to accomplish by 2050, spanning various sectors, with a primary focus on industry, Oil & Gas, power generation, and transportation (Figure 8). Other sectors, including Agriculture, Land Use and Land Use Change and Forestry (LULUCF), Waste, and Hydrogen, collectively amount to less than 5% of the total emissions in the orderly transition to Net Zero pathway, and thus are not shown in detail in the mitigations levers section. Business -as-Usual outlook 110 100 90 80 70 60 50 40 Multiple 30 pathways 20 An Orderly possible 10 Transition pathway 2021 25 30 35 40 45 2050 Key priority levers (not exhaustive) Idustry Electrify low/medium-temperature heat across indusries feedstock changes in steel, cement, PetChem, and selective grid connections Oil & Gas Electrify low/medium-temperature heat and implement efficiency improvements, LDAR for fugitives, and repurpose/export flared gas Transport Wide transition to EVs2 and H2-fule cells for long-distance trucks and buses, behavioral changes reducing car usage, biofuels blending for lower for lower emissions from ICE3 vehicles Power Deploy renewable power generation at large scale, mainly driven by solar PV and onshore wind. In the Buildings subsector, improve insulation standards for new builds, improve energy effciency of air conditioning units and other electrical equipment. Other Agriculture, LULUCF, Waste, and Hydrogen Figure 8. Priority levers across the main sectors By 2030, Oman aims to lower emissions by 21% compared to the Business-as-Usual scenario, followed by a 54% reduction by 2040, and an ambitious 92% reduction by 2050. This strategic trajectory leaves Oman with a "last mile" challenge, constituting approximately 8% (7 million CO2e) of emissions, which needs to be addressed to attain Net Zero emissions by 2050. To bridge this remaining gap, Oman has identified several key strategies. First, Oman intends to leverage breakthrough decarbonization technologies that hold the potential to significantly reduce emissions. Additionally, Oman is exploring the possibility of utilizing engineered or natural negative emissions methods, such as Direct Air Capture (DAC) of carbon with subsequent storage in depleted reservoirs or the expansion of carbon-absorbing mangrove forests. 21

3.5.1. Power 2023 Figure 9. Power Field, Oman Sector Base Year and Target In 2021, Oman's power sector emitted 19% (17.1 MtCO2e) of total emissions. By 2050, power related emissions could rise by 58% (up to 26.91 MtCO2e) due to increased electricity demands. Oman targets net-zero emissions with 60% renewables (solar, wind) and decarbonization (gas, CCS, potential nuclear) for the remaining 40%. Table 2. Power Sector Basline, BAU, and Target emissions Baseline GHG Emissions in 2021 17.1 MtCO2e BAU GHG Emissions by 2030 21.37 MtCO2e Mitigation Target by 2030 (Percentage from BAU) 42% Current Policy levers and Future Initiatives The table below provides a detailed analysis of the Power sector related mitigation measures currently in place or planned by Oman. These measures encompass initiatives and policy actions. The buildings sector reductions policy levers, and initiatives have been included within the power sector, as most measures will result in energy consumption reduction (in the form of electricity savings). Table 3. Power sector policy levers and future initiatives Area of Interest Current Policy Levers Future Initiatives The National Energy Strategy aims to increase Example of planned RE projects: Renewable Energy Projects the share of renewable energy in the energy - Ibri 2& 3 solar power station mix to 35-39% by 2040. The strategy includes - Barka Waste to Energy (WTE) Project a number of initiatives to promote renewable - Madayn solar project in Sohar energy, such as the development of solar and - Liwa solar power plant wind power projects. - Manah 1 and 2 Solar Projects Example of commissioned RE projects: - Al Mazyuna Solar Power Plant - Ibri 1 Solar Projects - Duqm, Jaalan Bani Bu Ali, and Harweel Wind - Amin Solar PV Park projects - Independent Power Project (IPP) - Sohar Solar Qabas Project - Dhofar Wind Farm - Utilization of hybrid solar and wind power - Smart meter plants for efficient load management. - Establishment of a North-South corridor for renewable power evacuation and peak load management. Government Subsidies Introduction of Sahim Residential Initiative that Introduce a Net-Metering scheme allowing allows wide-scale deployment of excess electricity sales to the grid in addition grid-connected photovoltaic (PV) systems in to other incentives and subsidies such as residential premises throughout Oman in Green bonds by the central bank to addition to the Accelerated Subsidy encourage renewable energy adoption. and Incentives Adjustment Scheme (ASAS) extending solar panel subsidies, providing subsidies for residential solar panel installations and advancing solar investment program promoting solar investments and incentives. 22 2023 Area of Interest Current Policy Levers Future Initiatives Transition to Cleaner The Environmental Authority (EA) actively Planned retirement of all diesel power plants promotes investment in solar energy to by 2028, shifting to cleaner and sustainable increase the green energy mix. This involves energy sources. In addition, hybrid solar and creating favorable conditions and incentives wind power plants will be utilized for load for solar power projects, encouraging the management purposes. By combining these Energy Sources transition to renewable energy sources. renewable sources, the supply of electricity can be optimized, ensuring stability and reliability. The provider of electricity, water and Continued focus on sustainability and energy Sustainability wastewater services has prepared strategic efficiency across sectors. planning initiatives for the next 7-years, planning to implement a range of renewable Initiatives energy projects and has dedicated a focused 5-year blueprint to enhance transmission infrastructure Buildings Subsector Oman has taken many steps in the area of - Implementation of building codes for energy energy efficiency in buildings. Some of which efficiency in the construction sector Enhanced Energy are as follows: -Linking obtaining international green building -Implementation of energy efficiency certificates (LEED, EDGE, BREEM, etc.) to standards for appliances (Energy Efficiency governmental incentives. Ratio - EER) to reduce overall energy - Expansion of energy audits to identify Efficiency consumption. energy-saving opportunities in a broader -Inspections and enforcements to ensure range of buildings. compliance with standards. -Pilot funding programs to establish Energy Service Companies (ESCOs) who offer energy-efficient solutions to clients. The Ministry of Environment has set Allocation of budget for R&D of assessments and regulations of refrigerant environmentally-friendly technologies. Protection of gases used in appliances to prevent harm to the ozone layer, banning the use of ozone-depleting gases. Ozone Layer The Ministry of Housing and Urban planning is Advancement of lighting standards to further Transition to promoting the transition to LED lights for lower improve energy efficiency. power consumption and reduced energy-related emissions. LED Lighting

3.5.2. Oil & Gas Figure 10. Oil Rig, Oman 23 2023 Sector Base Year and Target In 2021, Oman's oil and gas sector contributed to approximately 26% (22.9 MtCO2e) of total emissions. Looking forward to 2050, a substantial reduction of 88% in emissions from the BAU is anticipated through the orderly transition strategy. Table 4. Oil and Gas Sector Basline, BAU, and Target emissions Baseline GHG Emissions in 2021 22.9 MtCO2e BAU GHG Emissions by 2030 25.33 MtCO2e Mitigation Target by 2030 (Percentage from BAU) 17% Current Policy levers and Future Initiatives The table below provides a detailed analysis of the Oil and Gas sector related mitigation measures currently in place or planned by Oman. These measures encompass initiatives and policy actions. Table 5. Oil and Gas sector policy levers and future initiatives Area of Interest Current Policy Levers Future Initiatives The work is ongoing for the implementation of -Increasing renewable energy generation and natural gas capture and repurposing like enhance the electrical grid in order to enable Decarbonization Sadad North Gas recovery project and Saih the electrification of the LNG terminals. Rawl-CPP flare recovery project, as well as the -Extensive initiatives to map out CO2 sources electrification of upstream production facilities and identify CO2 appropriate sinks focusing on and instruments. Furthermore, the Ministry of CO2 utilization and storage opportunities Measures Energy and Minerals is collaborating with across key parts in Oman. private sector companies to identify suitable locations for a Green Fuel Hub (Hydrogen or Ammonia) -The Ministry of Energy and Minerals is Replacement of existing infrastructure exploring potential projects in the field of (pipelines, assets) to eliminate remaining Cross-Sectoral Carbon Capture, Utilization, and Storage emissions. (CCUS) technology. The goal is to scale these technologies to become financially viable Projects -Renewable energy projects like Amin solar PV, Miraa solar to steam, solar car parks initiatives. Examples of alternative energy efforts: -The establishment of the Atmospheric -Conversion of three single cycle power plants Pressure Flare Recovery project which to combined cycle in Lekhwair, Qarn Alam and prevents the annual release of 600 MMSCF of Alternative Bahja-Rima clusters. gas, equivalent to 40,000 tCO2e emissions. -Waste heat recovery projects in Qarn Alam and Amal. Energy Efforts -Nimr wetlands and Rima wetlands water treatment projects to treat produced water using biological treatment processes. -Various solar roof-top installations initiatives in Ras Al-Hamra and Muscat area. Methane Emission The O&G companies have pledged to reduce -Acceleration and Legislation of efforts by methane emissions by 30% by 2030. They are private and public sector companies to working on the implementation of Gold measure, report, and verify methane Standard level 4 measurements standard of Oil emissions. Reduction and gas methane partnership. -Promotion of high abatement technologies to reduce GHG footprint. -Development of domestic carbon markets. 24

3.5.3. Industry 2023 Sector Base Year and Target As of 2021, Oman's industrial sector stands as a notable contributor to the country's emissions landscape, accounting for 28.4 MtCO2e, which represents approximately 32% of the nation's total emissions. Projections indicate that this figure could rise to 35.7 Mt by 2050, if Oman were to continue with business as usual. By 2050, industry will achieve net zero by switching to alternative production methods and a 50/50 energy mix between hydrocarbon and renewable sources. Figure 11. Industry Field, Oman Table 6. Industry Sector Basline, BAU, and Target emissions Baseline GHG Emissions in 2021 28.4 MtCO2e BAU GHG Emissions by 2030 34.44 MtCO2e Mitigation Target by 2030 (Percentage from BAU) 7% Current Policy levers and Future Initiatives The table below provides a detailed analysis of the industry sector related mitigation measures currently in place or planned by Oman. These measures encompass initiatives and policy actions. Table 7. Industry sector policy levers and future initiatives Area of Interest Current Policy Levers Future Initiatives Emission Reduction in The Chamber of Industry encourages - Gradual electrification of processes in industries to adopt green initiatives, petrochemicals, aluminum, and cement environmentally-friendly practices, and solar industries. power technologies. Some of these initiatives - Replacement of traditional gas with green include: hydrogen in selected sectors. -Electrification of refining processes and Industrial Sector low-to-medium temperature heat processes, which is anticipated to result in a 14% reduction. -Connecting selected sectors to the grid, resulting in a 9% reduction. The following steps have been taken: - Promotion of technological advancements -Ambitious goals for renewable hydrogen in hydrogen-based steel production production: 1 Mt by 2030, Up to 3.75 Mt by - Acting upon the results of the ongoing 2040, Up to 8.5 Mt by 2050. feasibility studies for green hydrogen. Hydrogen - The establishment of the Oman Hydrogen Center. Production -Five agreements have been signed for green hydrogen projects, signaling a commitment to the development of this clean energy source, including Gindad Shaded, Sohar Aluminum, Sohar ports and free zones, and Asyad maritime. 25 2023 Area of Interest Current Policy Levers Future Initiatives -A seven-year project is in progress to provide comprehensive feasibility studies, laying the groundwork for effective implementation of green hydrogen initiatives. Examples of ongoing efforts in CCUS: -Investment and deployment of CCUS technologies in hard-to-abate sectors such as Carbon Capture, -Early demonstrator projects for CCUS cement, ammonia, methanol, and technology exploration (post-2030). petrochemicals Utilization, and -Ongoing efforts in Hayma city to mitigate environmental impact through tree planting, green buffer zones, and plans for carbon Storage (CCUS) neutrality. -The Environmental Authority's “Plant a Tree” initiative in the Special Economic Zones and Free Zones, supervised by OPAZ. Transformation of -The Biogas Project aims at diversion of 60% of -Transition to alternative production methods Municipal Solid Waste (MSW) from landfills by by 2050, reducing reliance on conventional 2025, and 80% by 2030. processes and achieving a 50/50 split with renewable energy sources. Industrial Landscape

3.5.4. Transport Figure 12. Transport Sector in Oman 26 2023 Sector Base Year and Target In the year 2021, Oman's transportation sector released 15.9 million MtCO2e, contributing to 18% of the nation's overall emissions. Within this sector, passenger cars were responsible for approximately 60% of these emissions, with 1.3 million cars constituting around 87% of the transport fleet. If this current trajectory continues without intervention, emissions in this sector are projected to rise by 41% by the year 2050, primarily due to population growth. Through policy changes and infrastructure investments to support the adoption of electric and fuel cell electric vehicles, the transport sector will be able to achieve net zero by 2050. Table 8. Transport Sector Basline, BAU, and Target emissions Baseline GHG Emissions in 2021 15.9 MtCO2e BAU GHG Emissions by 2030 18.62 MtCO2e Mitigation Target by 2030 (Percentage from BAU) 19% Current Policy levers and Future Initiatives The table below provides a detailed analysis of the transport sector related mitigation measures currently in place or planned by Oman. These measures encompass initiatives and policy actions. Table 9. Transport sector policy levers and future initiatives Area of Interest Current Policy Levers Future Initiatives The Sustainable Transport Master Plan aims to - Policy revisions and infrastructure reduce the carbon intensity of the transport investments to facilitate BEVs and FCEVs Electrification of sector by 20% and electrify 34% of its cars by adoption by 2050 2030. The plan includes a number of initiatives - Passing import laws that make EVs and FCEVs to promote sustainable transportation, such as cost-competitive with Internal Combustion the development of public transportation Engine (ICE) vehicles Vehicle Fleet systems and the promotion of EV, as well as creating a bus lane on Sultan Qaboos Street, which reduce 0.85 tons CO2e per capita per year). Maritime and The efforts are focused on GHG reduction Exploration of Sustainable Aviation Fuel (SAF) measures in ports to mitigate emissions, to reduce carbon emissions in aviation. including but not limited to studying the viability of solar power at Oman Airport. Aviation Sector The government of Oman is leading in early Policy revisions and infrastructure investments Electric Vehicle technology adoption, including the to ensure widespread integration of BEVs and establishment of 350 charging stations FCEVs by 2050, ensuring continuous Charging throughout Oman. monitoring and data-driven policy shaping. Infrastructure The Ministry of Transportation is leading the Continued efforts to promote biofuels efforts in transitioning to biofuels as a blending as a means to reduce emissions from Biofuels sustainable approach to lower carbon traditional ICE vehicles through establishing footprint through a pilot project for action plans to align transportation sector with Blending incorporating biofuels blending (B5) to reduce current initiatives in waste digestion emissions from ICE vehicles by 5%. 27

3.6. Economic Diversification and Co-benefits 2023

3.6.1. Economic Diversification Thanks to the contributions from both the Oil and Gas sector (3.1%) and non-oil sectors (5.5%), Oman’s GDP grew by 4.3% in 2022, outpacing the 2007-2017 average of 4.1%. It is important to note that this growth occurred despite all COVID-19 challenges. Oman's commitment to mitigate GHG emissions while driving sustainable growth is evident in its NDC report. This commitment is emphasized by transforming the economy towards innovation, embracing new technologies, and capacity building, seeking comprehensive integration between economic sectors to diversify trade, invest in high-value sectors, and grow the non-oil GDP share. In order to succeed, fostering local innovation, empowering entrepreneurship, and a conducive legislative environment are essential. As a result, Oman's global and regional economic competitiveness will be strengthened, ensuring sustainable and stable growth. A set of policies to accelerate economic diversification, termed "Tanwea’a", anchors Oman's NDC strategy. Oman also launched a National Program for Investment and Exports Development “Nazdaher” to achieve economic diversification. The nation is reducing reliance on oil and gas by encouraging sectors like tourism, technology, and green innovations (such as Green Hydrogen, CCUS, and solar investments). This approach not only aims for emissions reduction, but also numerous co-benefits like improved living standards for its citizens. Although Oman's Economic Development Index (EDI) showed a slight improvement in 2021, more efforts are needed to meet Oman’s vision, the main objective being to achieve the top 20 global rank. Investments in renewable energy, eco-tourism, and other sustainable domains are creating diverse job opportunities, promoting skills enhancement, community empowerment, and green employment, , ensuring future work opportunitiies for youth. This strategic direction, aligned with Sustainable Development Goals (SDGs) 8 and 9, places Oman at the forefront of the global green economy. Oman is currently working on various economic areas for economic diversification including Salalah Methanol Company, Salalah Ammonia Plant, Asyad Dry Dock, Karwa Motors, Intaj Sohar on Advanced Manufacturing, polymers plant, The Sustainable City Yiti, Omani abalone farming project, Ras Markaz crude oil storage terminal, Sohar Aluminum, Oman Chromite Company expansion, Duqm Dry Dock, and investments related to the Special Economic Zone at Duqm. Along with encouraging the localization and establishment of many industrial initiatives, the government is supporting the efforts of the National Program for Fiscal Sustainability and Financial Sector Development team, with an emphasis on high-impact projects.

3.6.2. Co-Benefits Recognizing the connection between climate action and socio-economic development. Oman’s strategy prioritizes co-benefits that align environmental and socio-economic objectives. To begin with, transitioning away from fossil fuels and embracing cleaner technologies not only curbs GHG emissions but also enhances air quality, leading to positive impacts on public health and an elevated overall quality of life. Moreover, this strategic shift to renewable energy sources promotes Oman's energy security, shielding the nation from global energy price fluctuations and fostering self-sufficiency. Furthermore, Oman's rich cultural heritage, picturesque landscapes, and pristine coastlines provide a platform for sustainable tourism practices. Investments in eco-tourism, cultural preservation, and responsible hospitality not only stimulate Oman's economy but also demonstrate the nation's dedication to environmental conservation. In addition, diversifying the economy through innovation and the adoption of advanced technologies promotes economic growth and positions Oman as a pioneer in sustainable development. Initiatives such as renewable energy promotion and methane avoidance in the Oil & Gas sector, create new business opportunities and green jobs in Oman. 28 4. Implementation Modalities 2023 To effectively implement the NDC, it is essential to coordinate efforts across various administrative levels and among diverse stakeholder groups. The Net Zero Strategy 2050 serves as Oman's principal policy framework for guiding national mitigation actions in the long and short term. It is crucial to recognize that it provides a high-level approach to addressing the challenges of climate change on a national scale. This collaboration can involve capacity-building initiatives in areas such as scientific research, policy analysis, and the adoption of robust monitoring and verification protocols.

4.1. Nationwide Strategic Programs Oman Vision 2040 Oman has embraced a comprehensive development approach under Vision 2040, which also integrates the 17 SDGs into its efforts. Vision 2040 highlights Oman's key performance indicators (KPIs) for accelerating developmental and climate actions to confront the future impacts of climate change. It underscores the imperative of global alignment, collaboration, and a shared vision to create a world where communities can thrive in the face of climate change's impacts (Figure 13). Our National Priorities Development The Private Labour Economic Economic Well-being Citizenship, Health Education, Governance Legislative, Environment of Sectore, Market and Diversification Leadership and Social Idenriry and Learning, of state`s Judicial and and Natural Governorates Investment Employment and Fiscal and Protection National Scientific Administrative Oversight Resources and and Sistainability Management Heritage and Research Bodies, System sustainable International Culture and Resources Cities Cooperation National and Projects Capabilities Figure 13. National Priorities of Oman Monitoring of Vision 2040 Targets Oman Vision 2040 pursues clear guidelines and a greater implementation of the relevant national plans to ensure the effective incorporation of the SDGs into its decision-making process. Additionally, a coordinating body, the Oman Vision 2040 Implementation Monitoring Unit, was established alongside other governmental bodies to monitor development of the 69 Key Performance Indicators outlined in the Vision 2040. Oman conducts regular progress reports [9] to assess its achievements and challenges in pursuing the SDGs. By aligning its national priorities with these global goals, Oman is actively contributing to the collective efforts needed to address the climate crisis and promote sustainable development for the benefit of its citizens and the world. 9 oman2040.om/Oman2040Report?lang=en 29 2023 National Programs To realize Oman Vision 2040’s core priorities, several National Programs were prepared under the follow-up Unit and in close collaboration with relevant stakeholders. These programs are set in motion following Royal Directives or subsequent endorsement by the Council of Ministers. Each program operates under the purview of a designated minister, supported by a dedicated executive body, an independent budget allocation, and specialized teams committed to formulating initiatives and projects. These teams work in tandem with the unit, actively contributing to program objectives and collaborating on overcoming associated challenges. Additionally, rigorous oversight encompasses the performance metrics linked to the individual initiatives and projects nested within each program. • The National Program for Fiscal Sustainability and Financial Sector Development “Estidamah” • The National Employment Program “Tashgheel” • The National Program for Investment and Exports Development “Nazdaher” • The National Program for Economic Diversification “Tanwea’a” • Government Digital Transformation Program • The National Program for Carbon Neutrality Net Zero Strategy 2050 The Paris Global Goal and Vision 2040 both include the Net Zero Strategy 2050, which acts as Oman's road map for a resilient, sustainable, and prosperous future. It complies with SDGs 13 (Climate Action) and 15 (Life on Land) by placing sustainable environmental practices at the core of its operations. The nation is committed to attaining net zero emissions by 2050, and placing a focus on switching to renewable energy, reducing its reliance on fossil fuels, and protecting its biodiversity and natural ecosystems. National Strategy for Adaptation and Mitigation to Climate Change (2020-2040) In April 2019, Oman approved a comprehensive 20-year National Strategy for Adaptation and Mitigation to Climate Change, underscoring its commitment to addressing the challenges posed by climate change. This strategy is organized around three integrated themes, informed by five primary objectives, that collectively reflect Oman's priorities in responding to climate change. The first theme, Climate Science, entails an in-depth analysis of historical climate trends and projections of future climate changes. It includes the development of climate information, regional climate modeling, air monitoring, and strategic research actions. The second theme, Vulnerability and Adaptation, forms the basis for Oman's Climate Change Adaptation Strategy by examining the vulnerabilities of priority sectors in Oman to climate change impacts. The third theme which is the core of this strategy, Sustainable Development, which seeks to harmonize climate adaptation and mitigation efforts with broader development goals, emphasizing the importance of building climate resilience while promoting sustainable development. Build Institutional Capacity to effectively address climate change challenges. Enhance Engage awareness of actively at both climate change the national and across various international levels to meet climate public and private change needs. sector groups. Five Primary Objectives Develop sector-specific Advance climate policies as an research to essential component improve access of Oman's climate to crucial climate adaptation data. strategy. Figure 14. The five primary objectives of the National Strategy for Adaptation and Mitigation to Climate Change (2040-2020) 30 2023 National Adaptation Plan The Climate Change Adaptation Strategy is being developed with the GCF Readiness Program support to address the impacts of climate change in Oman. The strategy will guide climate actions in five critical sectors: water resources, marine biodiversity and fisheries, agriculture, urban areas, tourism and infrastructure, and public health. Oman recognizes the need for sector-specific adaptation strategies, which will be integrated into sectoral processes and incorporated into the portfolios of relevant ministries.

4.2. Institutional Arrangements Legislation Efforts In its ongoing commitment to incorporate climate change requirements into its legal framework, the Omani Environmental Authority, in collaboration with relevant stakeholders, is currently revising Oman’s Environmental Law. This update aims to clarify emission reporting rules for various sectors, as well as establish the institutional framework for committees that are responsible for monitoring and resolving climate-related matters. Additionally, the draft intends to offer guidance on local and international carbon market participation and criteria for registering carbon emission reductions for private use. This aligns with Oman’s NDC and other strategic documents to ensure the fulfillment of Oman’s national commitments. In addition, a Steering Committee for Climate Change has been recently formed to supervise the technical teams under its purview, including teams focusing on mitigation, adaptation, finance, technology, and capacity building as a segment of the broader Ministerial Committee on Climate Change. Carbon Management Lab The carbon management lab workshop was conducted for all Ministries and Departments for the long-term ambition of transitioning to a carbon net-zero status by 2050. The lab established a roadmap for all sectors, and as a result, a number of projects and initiatives were approved, including mitigation projects that would significantly reduce greenhouse gas emissions. By establishing the baseline and creating a national strategy and execution plan for each sector’s transition to carbon net zero, the Carbon Management Lab consolidated all of Oman’s national efforts. Energy Economy Oil & Gas 8 1 5 Enviro- nment 1 Invitiatives 10 Industry 6 18 Cities & 6 Building Transport Figure 15 Net Zero Initiatives 31 2023 1 Provide general support and overall guidance for the implementation of laboratory outputs by reviewing and resolving any challenges or obstacles facing and initiatives 2 Oversee progress along with guaranteeing that the RCA Program Role outputs are aligned with the aspirations of the sultanate and strategic directions of Oman`s Net-zero plan Create promising opportunities and exciting prospects for the Net-zero 3 carbon investment map Ensure that research and innovation practices are being integrated along with strengthening of the human capabilities of national cadres Ensure all parties follow a research and innovation driven approach 4 Make sure all concerned individuals follow a data driven approach Monitor key metrics relevant to the Net-zero and ensure that all related parties are utilizing a data driven approach Offer follow up and continual assistance Figure 16. Net Zero Initiatives Formation of a National Program for Carbon Neutrality (PMO) The national program was launched in January 2023 by the Oman Vision 2040 in collaboration with the Ministry of Energy and Minerals and the Environment Authority in order to hasten the attainment of the desired status and strategic direction of the Sultanate of Oman's pathway to net-zero emissions as it was announced that these pathways and budget were necessary to achieve net-zero emissions by the year 2050. The national program monitors a total of 49 Initiatives and projects including 32 enabling projects and 17 projects that contribute directly to lower emissions. The organizational structure and role of the program are described in Figure 17 below: Program Sponsor Chaired by H.E. Excellency Minister of Energy and Minerals H. E Chairman of Oman Vision 2040 Implementation follow-up unit Program CO-Sponsor H. E. Chairman of the Environment Authority Environment and Natural Head of Program Resources Priority Support Management Office Team Deputy Head of Program Management Office Planning, Research and Financial, Administrator Support and Performance Monitoring Initiatives Follow-up International Reports Continuous Development and Media Lead Problem Solving Lead Lead Lead Lead lead Cities and Buildings Transport Representatives Industry Representatives Energy Representatives Representatives Oil and gas Representatives Electricity Representatives Figure 17. National Program for Carbon Neutrality (PMO) 32

4.3. Sustainable Development Goals 2023 The Sultanate of Oman recognizes the gravity and multifaceted nature of the global climate crisis. In response, Oman has adopted a comprehensive approach that integrates the SDGs into its climate action strategy, positioning the country on a resilient development trajectory. Acknowledging the urgency of climate adaptation and resilience-building, Oman underscores the necessity of unified efforts and a shared vision among nations to create a world capable of thriving, despite climate challenges. The 2030 Agenda for Sustainable Development has been seamlessly integrated into Oman's Five-Year Plans and the Oman Vision 2040. Remarkably, Oman has achieved substantial progress towards the 2030 SDGs, ranking among the six Arab countries that have accomplished at least 60% of these goals by 2022, with an average score of 68.59 [10] out of 100. Commitment and Reporting Oman's holistic approach, aligned with the SDGs, signifies its dedication to addressing the climate crisis and fostering sustainable development. The nation's exemplary progress towards these goals demonstrates its commitment to creating a resilient and thriving future.

4.4. Capacity Building Oman's commitment to mitigating emissions and adapting to climate change takes center stage through its concerted efforts to cultivate human resources and capabilities. Embodied within Oman's Net Zero Strategy 2050, a visionary blueprint is emerging, one that envisions a populace - including women, children, and youth - empowered to address climate challenges head-on. This strategy visualizes a substantial surge in employment opportunities, aiming to generate over 40% new roles in the power sector and an impressive 55% expansion in the Hydrogen sector by 2050. It's important for Oman to establish partnerships, both domestically and globally, to gain access to knowledge, resources, and best practices. International collaboration holds the potential to enhance Oman's ability to effectively tackle climate change challenges holistically. Additionally, regular reviews and revisions of the Climate Change Strategy are essential to ensure its alignment with evolving scientific insights and changing circumstances. This flexibility is vital to remain on course in achieving climate-related objectives and responding rapidly to emerging issues in the realm of climate change. Furthermore, the elimination of regulatory obstacles will streamline the swift and efficient implementation of climate action plans across various sectors. Central to this pursuit is the strategic development of skills and capabilities, that maximizes the potential of these opportunities while facilitating a seamless transition to a sustainable economy. This approach is marked by a keen focus on aligning skill sets with emerging technologies like CCUS, hydrogen technologies, and Electric Vehicles (EVs). This strategic endeavor unfolds in tandem with an overarching collaborative spirit, engaging stakeholders across sectors to drive climate action. Core to this collaboration is capacity building, equipping stakeholders with the knowledge and tools to adeptly navigate climate initiatives' complex terrain. Simultaneously, a focal point is placed on raising awareness about climate change and its cascading implications. Nurturing a shared sense of accountability towards climate challenges and highlighting the promising avenues of the green economy. In the convergence of these efforts, Oman stands poised, not only to realize its Net Zero ambitions, but to usher in a future where its citizens are empowered agents of sustainable progress. 10 dashboards.sdgindex.org/profiles/oman 33

4.5. Technology Development and Innovation Progression 2023 Technology Development Oman's NDC report underscores the strategic imperative to harness cutting-edge solutions across multiple sectors, ranging from energy and resource efficiency to electrification, renewables, and advanced technologies. By embracing these innovations, Oman aims to catalyze positive change, create economic opportunities, and accelerate the transition towards a low-carbon and resilient future. Oman is prioritizing research and development initiatives to ensure the efficient production of both green and blue hydrogen. Green Hydrogen, harnessed from renewable energy sources, and Blue Hydrogen, extracted from natural gas with the implementation of Carbon Capture and Storage (CCS) technologies, will feature prominently in Oman’s strategies to curtail emissions across various sectors. Not to mention that established requisite infrastructure for hydrogen storage, transportation, and distribution, facilitate its widespread adoption. In alignment with Oman’s dedication to the Global Methane Pledge, the pivotal role of accurate methane monitoring and emissions tracking is being underscored. Oman is poised to collaborate closely with international organizations and fellow nations to access and exchange satellite data that specifically pertains to methane emissions. This collaboration will significantly enhance Oman’s ability to promptly detect and respond to methane emissions; therefore, aligning with Oman’s methane reduction objectives and supporting global climate action. Oman's Progressive Innovation Initiatives The Sultanate of Oman, in its drive for progress and innovation and pursuit of SDGs, has initiated numerous programs to bolster investment in education, scientific research, and multidisciplinary innovation which will naturally bolster environmental knowledge. Through partnerships with the private sector, Oman has set up 42 public schools, encouraged private participation in R&D, and has taken significant digital strides with the Oman Innovate Platform. Essential institutions, including the Industrial Innovation Academy, Liwa Science and Innovation Centre, and Oman Aviation Academy, highlight the nation's commitment to pioneering advancements. In healthcare, the Sultan Qaboos Comprehensive Cancer Care and Research Centre (SQCCCRC) showcases Oman's dedication to premier medical research and care. To fortify the future, Oman has launched the National Youth Plan, National Fund for Emergencies, and the National Subsidy System (NSS), reinforcing financial sustainability. In energy efficiency, Oman targets the integration of smart meters for 50,000 industrial users to foster efficient energy practices. Furthermore, the Oman Investment Authority champions human capital through programs like "Nomu", "Eidaad", and "Takatuf Scholars." Economic diversification is prioritized via the National Program for Investment and Exports Development (Nazdaher), covering various sectors. Environmentally, Oman demonstrates commitment through initiatives like the Oman Hydrogen Centre, the planting of 10 million trees, and the deployment of artificial rain seeding stations. These diverse and impactful initiatives collectively underline Oman's dedication to progress, innovation, sustainability, and the well-being of its citizens and environment.

4.6. Financial Requirements Oman recognizes the need for accelerated climate financing to implement its identified mitigation actions and adapt to climatic impacts. It is expected that the financing for Oman’s ambitious energy transition will primarily come from climate finance, carbon markets, and private sector investments, contributing 70-80% of the required funds. Simultaneously, the government is committed to playing a significant role in supporting this transition, contributing 20-30% of the necessary financing. This collaborative effort between the public and private sectors highlights the shared commitment to sustainable energy practices, environmental stewardship, and the decarbonization of Oman’s energy landscape. 34

4.6.1. Domestic Public and Private Investments 2023 Establishing the necessary frameworks, within both the public and private sectors, are key drivers for ushering a low carbon economic footprint and reinforcing the economy's resilience in the face of regional and global changes. A competitive economy, spearheaded by the private sector, will capitalize on various advantages the Sultanate possesses. Notably, its political and economic stability, and its long-term investments in strategic relationships. The low-carbon business landscape will be cultivated, with the private sector assuming a leading role and being empowered to foster equitable economic growth. This empowerment aims to create a competitive and enabling environment for the private sector, promoting the development of free, socially responsible, and environmentally sustainable industries. There will be a focus on enhancing financial depth in the capital market and ensuring sustainable funding through innovative models to kickstart productive enterprises, particularly small and medium-sized enterprises (SMEs). Oman's strategically advantageous geographic location offers a prime opportunity to facilitate investment collaborations between Omani private enterprises and the international business community, attracting high-quality foreign direct investments in green technologies and aiding Oman in becoming a net zero by 2050. These global partnerships will broaden economic diversification and boost Oman's GDP through increased export contributions.

4.6.2. Climate Finance In the journey towards achieving Oman's net-zero strategy, the significance of a well-defined climate finance strategy cannot be overstated. As all nations unite to combat the escalating challenges posed by climate change, the role of climate finance in facilitating sustainable development has emerged as a cornerstone. According to the Net Zero 2050 strategy, the magnitude of investments needed to catalyze the hydrogen export economy alone adds an estimated USD 230 billion to the already substantial funding requirement. This increase in capital expenditure, constituting a significant 60-65% rise above the business-as-usual scenario, underscores the scale of financial commitment demanded by Oman's transition to a sustainable future. Notably, these supplementary investments cannot be solely borne by the Government; an urgent call for diverse sources of funding emerges. In this context, the projection that the private sector could potentially shoulder 70-80% of the global energy transition expenses by 2050 takes on heightened significance. To transform this projection into reality, an adept climate finance strategy assumes a pivotal role in attracting external investments, offering a fertile ground for partnerships between public and private stakeholders. By facilitating access to capital and mitigating financial risks, this strategy becomes the linchpin in steering Oman towards its net-zero objectives, while simultaneously fostering an environment ripe for collaboration and sustainable growth. Table 10. Climate Finance mechanisms Article 6 Oman fully supports and intends to actively participate in the implementation of Article 6 of the Paris Agreement. Moreover, Oman will work collaboratively with international partners to establish robust rules and guidelines for the transparent and accountable operation of these mechanisms. Carbon Market Blue Carbon Strategy Recognizing the significance of coastal ecosystems in isolating carbon and safeguarding against climate impacts. The country aims to protect and restore mangroves, seagrasses, and other coastal habitats that act as valuable carbon sinks. By doing so, Oman contributes to mitigating climate change while enhancing coastal resilience and supporting biodiversity. This strategy can be financed through the participation of the private sector as well as emission removal monetization. 35 2023 Oman's engagement with the GCF began in 2016 through the Readiness and Preparatory Support (RSP) program, which significantly enhanced the Ministry of Environment and Climate Affairs (MECA). Including the accreditation of a direct access entity, the establishment of Oman's Country Programme, dissemination of GCF-related information to key stakeholders, and improved understanding of the benefits and engagement Green possibilities with the GCF, particularly in the private sector. Climate Fund So far three GCF readiness programs implemented: (1)Low-Carbon Transportation Development in the Sultanate of Oman. (2)Building a Resilient Environment and Sustainable Agriculture and Water. (3)Enhancing the NAP Process for the Sultanate of Oman (Ongoing). Tropical cyclones present substantial difficulties and hazards for Oman, as it has encountered more than nine powerful cyclones within the last half-century. A prominent illustration of this is the tropical cyclone Shaheen, that hit Oman in 2021, inflicting extensive harm to infrastructure, leading to loss of life, and resulting in considerable economic setbacks exceeding several billion US dollars in uninsured sectors. The economic toll of this cyclone surpassed the impact of Cyclone Gonu 2007, which amounted to 4.2 billion dollars. Loss and Furthermore, Cyclone Shaheen 2021 caused economic damage of more than 3 billion and Damage required more funds for the recovery activities. For that reason, the Sultanate of Oman is planning to initiate a national loss and damage policy and response fund to integrate into the country's broader climate adaptation and resilience strategies. This will help seek international cooperation and financial support in dealing with the complex and multifaceted challenges. This exercise would be supplemented with the vulnerability assessment studies carried as part of the NAP. Oman is exploring opportunities in the realm of green finance, including the issuance of green bonds through its proposed multilateral banks. Green bonds are a vital instrument for funding environmentally sustainable projects and initiatives, aligning with Oman's Multilateral commitment to environmental stewardship and sustainability. These green bonds will enable Development the country to raise capital specifically for eco-friendly projects, such as renewable energy, Banks clean transportation, and environmentally responsible infrastructure. By incorporating green finance into its multilateral bank development strategy, Oman aims to make a positive impact on its environment ,while simultaneously attracting investments in sustainable development. 36

4.7. Decent and Sustainable Life for All 2023 Oman is actively promoting socio-economic empowerment programs with the goal of enhancing adaptive capacity and ensuring a decent and sustainable life for all segments of society. These programs primarily target the needs of low-income groups, women, children, and youth. The key objectives are to deliver social justice, create new job opportunities, foster skill development, and support the transition to a green economy. In this context, the Juthoor Program and Ocean Generation Initiative, launched in the first quarter of 2023, are educational initiatives designed to engage youth and local communities. Their primary goal is to cultivate awareness of environmental sustainability and instill attitudes and values supportive of this cause. The initiatives yield tangible outcomes, including the establishment of a quantitative indicator for gauging environmental behavior, the development of interactive educational materials for schools and universities, and the implementation of public programs and activities. Furthermore, in collaboration with Veolia Oman, the Ministry of Education has instituted Namat Competition, an annual sustainability innovation competition in schools. This competition specifically emphasizes innovation in water management, waste management, and energy management. These efforts align with SDG 4 (Quality Education) and SDG 3 (Good Health and Well-being). Additionally, Oman is investing in education and healthcare to provide its citizens with access to quality education, healthcare services, and opportunities for personal development.

4.8. National MRV Tracking systems The National Monitoring, Reporting, and Verification (MRV) system to be established in Oman will play a crucial role in tracking various aspects related to climate action. It will monitor GHG emissions across all sectors of the economy, encompassing energy, transport, industry, agriculture, and waste. Furthermore, the system will also track the progress of mitigation actions, such as the installation of renewable energy projects and advancements in energy efficiency. In addition to emissions and mitigation actions, the MRV system shall oversee the implementation of adaptation measures, including the construction of seawalls and the development of drought-resistant crops. It will also track financial flows associated with climate change, including investments in both mitigation and adaptation initiatives. Lastly, the MRV system shall keep a record of capacity building activities aimed at supporting the implementation of Oman's NDC, ensuring that the nation's climate goals are effectively realized. The specific activities to be included in the scope of the MRV system will depend on Oman’s specific circumstance. However, some examples of activities that could be included are: collecting data on GHG emissions, mitigation actions, adaptation measures, financial flows, capacity building activities, verifying the accuracy and reliability of the data that is collected, reporting on the progress of Oman's NDC implementation to the UNFCCC, and ensuring that all stakeholders are accountable for their actions related to climate change. The MRV system is being developed by the Environmental Authority of Oman (EA) in collaboration with other government agencies and stakeholders. It will be based on international standards and guidelines such as the UNFCCC’s MRV Protocol. The development of the MRV system is a critical step for Oman to meet its climate change targets. By tracking its emissions and progress, Oman will be able to make informed decisions on climate change policies and measures. 37

4.9 Alignment with International Frameworks 2023 The NDC for the Sultanate of Oman is fully aligned with Article 6, Paris Global Goal, Economic Diversification and Mitigation efforts regarding Oman's policies on Net Zero Strategy 2050 and Vision 2040. This is an updated strategic guidance for the Oman climate agenda. This update provides a comprehensive outlook through 2030 and beyond. This document will be supplemented with the Adaptation Plan which is under preparation, including future assessment and evaluations on loss and damage in addition to Article 6 framework. 5. Information Necessary for Clarity, Transparency, and Understanding of The First Update of the Second NDC 1. Quantifiable information on the reference point (including, as appropriate, a base year) a. Reference year(s), base year(s), reference period(s) or Base year: 2021 other starting point(s); Reference period: 2021-2030 Business-as-Usual projection year: 2030 b. Quantifiable information on the reference indicators, their The Sultanate of Oman’s GHG emissions in 2021 (base year) were 90 MtCO2e. values in the reference year(s), base year(s), reference Section 3.5 provides data on sectoral GHG emissions, presenting both base period(s) or other starting point(s), and, as applicable, in year and future projections for the year 2030. the target year; c. For strategies, plans and actions referred to in Article 4, Not applicable paragraph 6, of the Paris Agreement, or policies and measures as components of NDCs where paragraph 1(b) above is not applicable, Parties to provide other relevant information; d. Target relative to the reference indicator, expressed Reduction of 21% (7% committed and 14% conditional) by 2030 (equivalent numerically, for example in percentage or amount of to 22.46 MtCO2e) relative to BAU, with total GHG emissions, capped at reduction; 84.25 Mt CO2e in 2030. By 2030, the Sultanate of Oman aims to achieve significant reductions in GHG emissions for the below four key sectors compared to their Business-As-Usual (BAU) emission levels. Other sectors collectively contribute to less than 5% of emissions and include Agriculture, LULUCF, Waste, and Hydrogen. BAU Scenario for Mitigation Target by 2030 Sector GHG Emissions in (Percentage from BAU) 2030 (MtCO2e) Power 21.37 42% Oil & Gas 25.33 17% Industry 34.44 7% Transport 18.62 19% Other 6.96 45% 38 2023 e. Information on sources of data used in During the Carbon Management Lab, the reference points were created by quantifying the reference point(s); triangulating reported data on emissions, activity levels, and the energy consumption. Sector Area Data sources and Notes Oil & Gas production Public MEM AR | Natural gas consumption Oil & Gas Flaring Permit reports | MEM data | LNG data Fugitives / Venting LNG fuel use MEM AR, LNG data Petroleum refining MEM reported production levels Petrochemical MEM reported naphtha production industry Note: Detailed activity numbers per product not modeled based on activity levels of individual Petro-chemical products| Cement Industry Aluminum Company reporting | Permit reports | Industry sector database Iron & Steel Note: Cement includes captive power generation Methanol Urea & ammonia F-gases OCMM 2021 Other industry MEM AR Delta of subtotal and total reported gas usage Passenger cars 1- Based on the registered vehicles based on 2021 data and reported fuel consumption in 2019 to account for the Covid 19 effect 2 &3 Wheelers 2- Based on Oman National Centre for Statistics & Transport Information (2021 data) 3- Cars and buses based on the Oman National Transport model; trucks based on diesel consumption, Buses allocating reported diesel consumption in 2019 on trucks ( 100 % of the fleet), after deducting diesel consumed by buses ( 50 % of the fleet) and cars 10 % of LCVs the fleet); LCVs and 2 & 3 Wheelers based on Middle East average Trucks Commercial 1- No. of commercial and governmental dwellings based on APSR CRT electrical energy consumption data and presumed similar energy consumption per dwelling 2- Technology split based on UCL Energy Institute and Governmental the Authority for Public Services Regulation (f.k.a. AER) Buildings report Note: In alignment with the Oman s Carbon Management Lab, it is assumed that 95 % of current buildings have a low insulation level, all energy Residential consumption is electrified (e.g., cooking) and that there is negligible district cooling MEM Annual report | Gas production and consumption Power Note: 0.7 TWh of 'Other power generation', which NA includes electricity import from UAE and electricity fed back into the grid produced by the industry is not considered f. Oman has issued a tender to develop a GHG dashboard inventory and in Information on the circumstances under the process to develop its independent MRV (Measurement, Reporting, which the Party may update the values of and Verification) system to effectively monitor its emissions and gauge its the reference indicators. progress. The forthcoming Biennial Transparency Report (BTR) will serve as a valuable resource for accessing up-to-date information on this endeavor. 39 2023 2. Time frames and/or periods for implementation a. Time frame and/or period for implementation, From 2021 to the end of 2030. including start and end date, consistent with any further relevant decision adopted by the CMA; b. Whether it is a single-year or multi-year target, as Single-year target applicable. 3. Scope and coverage a. General description of the target; The emission reduction target seeks to achieve a 21% reduction relative to the Business-As-Usual (BAU) projection for the year 2030. b. Sectors, gases, categories and pools covered by the Sector: nationally determined contribution, including, as Sectors with specific quantitative targets encompass: applicable, consistent with IPCC guidelines; • Power • Oil & Gas • Industry • Transport Greenhouse gases covered: Oman's commitment to addressing GHG emissions covers all major gases including Carbon Dioxide (CO2), Methane (CH4), and Nitrous Oxide (N2O). c. How the Party has taken into consideration Fluorinated Gases (F-gases) are included for the industrial sector only as paragraphs 31(c) and (d) of decision 1/CP.21; it is still under research in the other sectors. However, Oman plans to include F-gases for all sectors in future commitments, aligning with international agreements. The country is updating its regulations to meet global best practices in managing F-gas emissions. The maritime and aviation sector are not considered here, since these sectors are outside of the remit of the Paris agreement d. Mitigation co-benefits resulting from Parties’ Refer to Section 2.3 “Adaptation measures” for mitigation co-benefits adaptation actions and/or economic diversification actions and refer to Section 3.6 for economic diversification plans. plans, including description of specific projects, measures and initiatives of Parties’ adaptation actions and/or economic diversification plans. Planning process 4. Information on the planning processes that the Party undertook to prepare its NDC and, if available, on the Party’s implementation plans; a(i) Domestic institutional arrangements, public Refer to Section 1.5 ‘Stakeholder Engagement’ and Section 4.2 participation and engagement with local communities ‘Institutional Arrangements’ for planning processes. and indigenous peoples, in a gender-responsive manner; a(ii) Contextual matters, including, inter alia, as appropriate: (i) National circumstances, such as geography, climate, Refer to Section 1 ‘National Context’ above economy, sustainable development and poverty eradication; a(i) Refer to Section 1 ‘National Context’ above Best practices and experience related to the preparation of the nationally determined contribution; 40 2023 On October 11, 2022, a Royal Directive was issued to support Oman’s objective of becoming carbon neutral by 2050 as part of its Vision 2040 plan. The Oman Sustainability Centre was established to supervise and enforce zero-carbon emission initiatives to achieve this goal. The Centre will drive the country towards a more sustainable future. (iii) Other contextual aspirations and priorities acknowledged Refer to Section 1 ‘National Context’ above when joining the Paris Agreement; b. Specific information applicable to Parties, including Not applicable regional economic integration organizations and their member States, that have reached an agreement to act jointly under Article 4, paragraph 2, of the Paris Agreement, including the Parties that agreed to act jointly and the terms of the agreement, in accordance with Article 4, paragraphs 16, 18, of the Paris Agreement; c. How the Party’s preparation of its nationally determined The Sultanate of Oman is committed to the outcome of first Global Stocktake. contribution has been informed by the outcomes of the The First Update of the Second NDC was informed by the following IPCC global stocktake, in accordance with Article 4, paragraph reports: 9, of the Paris Agreement; • The IPCC AR6 Synthesis Report: Climate Change 2030. • The IPCC AR6 Climate Change 2022: Mitigation of Climate Change. • The IPCC AR6 Climate Change 2022: Impacts, Adaptation, and Vulnerability. d. Each Party with a nationally determined contribution under Article 4 of the Paris Agreement that consists of adaptation action and/or economic diversification plans resulting in mitigation co-benefits consistent with Article 4, paragraph 7, of the Paris Agreement to submit information on: d(i) How the economic and social consequences of response Oman's NDC, informed by the "Net Zero 2050" document, underscores its measures have been considered in developing the NDC. commitment to address the economic and social repercussions of response measures. Comprehensive impact assessments have been conducted to assess the consequences of proposed climate actions on various economic sectors and communities for Orderly Transition. The goal is to implement mitigation measures that not only curb GHG emissions but also stimulate sustainable economic growth, job creation, and social equity. By integrating the principles of the "Net Zero 2050" document into its NDC, Oman aims to ensure a balanced transition toward a low-carbon, climate-resilient future that aligns with both climate goals and national development priorities. Please refer to the 3.6.1 on the information related to Economic Diversification. d(ii) Specific projects, measures and activities to be Refer to Section 2.3 “Adaptation measures” for further details. implemented to contribute to mitigation co-benefits, including information on adaptation plans that also yield mitigation co-benefits, which may cover, but are not limited to, key sectors, such as energy, resources, water resources, coastal resources, human settlements and urban planning, agriculture and forestry; and economic diversification actions, which may cover, but are not limited to, sectors such as manufacturing and industry, energy and mining, transport and communication, construction, tourism, real estate, agriculture, and fisheries. 5. Assumptions and methodological approaches, including those for estimating and accounting for anthropogenic GHG emissions and, as appropriate, removals: 41 2023 a. Assumptions and methodological approaches used for The different pathways for Sultanate of Oman were shaped in the accounting for anthropogenic GHG emissions and Decarbonization Scenario Explorer (DSE), This methodology enables the removals corresponding to the Party’s NDC, consistent modeling of scenarios based on underlying activity levels, such as with decision 1/CP.21, paragraph 31, and accounting transportation usage or cement production, which influence the country's guidance adopted by the CMA; emissions over the projected time horizon. The methodology contains more than 200 technologies and shift levers across all sectors of the economy that allowed Oman to build tailored abatement scenarios. Thanks to the bottom-up modeling of energy consumption, capital expenditures, operating expenditures, and emission factors, the methodology granularly quantifies the greenhouse-gas abatement, investments, savings, and energy system implications of each scenario. The Sultanate of Oman has employed the IPCC methodology and guidelines of 2006 for the inventory of their GHG emissions and removals, which was reported as 96 Mt CO2 equivalent for 2015 in their Biennial Update Report. Additionally, Oman used the same methodology and guidelines for projecting GHG emissions up to 2030 under the Business-As-Usual scenario, which is projected at 106 Mt CO2e. b. Assumptions and methodological approaches used for The Sultanate of Oman will report on the implementation progress of the first accounting for the implementation of policies and updated of the second NDC in its Biennial Transparency Report using measures or strategies in the NDC; appropriate methods and assumptions. c. If applicable, information on how the Party will take into Please refer 5(a) above account existing methods and guidance under the Convention to account for anthropogenic emissions and removals, in accordance with Article 4, paragraph 14, of the PA, as appropriate; d. IPCC methodologies and metrics used for estimating Please refer 5(a) above anthropogenic GHG emissions and removals; e. Sector-, category- or activity-specific assumptions, methodologies and approaches consistent with IPCC guidance, as appropriate, including, as applicable: e(i) Approach to addressing emissions and subsequent The Sultanate intends to develop a strategy focused on blue carbon to removals from natural disturbances on managed lands; effectively manage and restore mangrove conservation. e(ii) Approach used to account for emissions and removals Not Applicable from harvested wood products; e(iii) Approach used to address the effects of age-class Not Applicable structure in forests; f. Other assumptions and methodological approaches used for understanding the NDC and, if applicable, estimating corresponding emissions and removals, including: f(i) How the reference indicators, baseline(s) and/or reference Please refer to sections 1(e) and 5(a) above level(s), including, where applicable, sector-, category- or activity specific reference levels, are constructed, including, for example, key parameters, assumptions, definitions, methodologies, data sources and models used; f(ii) For Parties with NDCs that contain non-GHG components, Not applicable information on assumptions and methodological approaches used in relation to those components, as applicable; 42 2023 f(iii) For climate forcers included in NDCs not covered by IPCC Not applicable guidelines, information on how the climate forcers are estimated; f(iv) Further technical information, as necessary; Not applicable g. The intention to use voluntary cooperation under Article 6 Please refer to the Section 4.6.2 “Climate Finance” of the Paris Agreement, if applicable. 6. How the Party considers that its NDC is fair and ambitious in the light of its national circumstances: a. How the Party considers that its NDC is fair and ambitious As a non-annex I country, Oman aims to become carbon neutral by 2050 and in the light of its national circumstances; considers its updated NDC target to align with Article 2 of the Convention. The updated third NDC is a comprehensive, ambitious goal backed by the latest scientific and evidence-based research. Please refer to Section 1.4 above under “More Ambitious Emission Reduction Target” b. Fairness considerations, including reflecting on equity; Refer 6(a) above c. How the Party has addressed Article 4, paragraph 3, of the This NDC of Oman is in line with Article 4, paragraph 6, of the Paris Agreement. Paris Agreement; Refer to Section 3.5 ‘Mitigation Targets and Pathways per sector’. d. How the Party has addressed Article 4, paragraph 4, of the Not applicable Paris Agreement; e. How the Party has addressed Article 4, paragraph 6, of the Not applicable Paris Agreement. 7. How the NDC contributes towards achieving the objective of the Convention as set out in its Article 2: a. How the NDC contributes towards achieving the objective Oman’s 1st Update of the 2nd NDC contribute to the objective of the of the Convention as set out in its Article 2; Convention as set out in Article 2 Refer to Section 3.5 ‘Mitigation Targets and Pathways per sector’. b. How the NDC contributes towards Article 2, paragraph 1(a), Oman's NDC not only conforms to the goals set out in Article 2.1(a) of the Paris and Article 4, paragraph 1, of the PA Agreement, aiming to constrain the global average temperature increase to well below 2°C above pre-industrial levels and pursuing efforts to limit it to 1.5°C, but also underscores Oman's commitment to achieving net-zero emissions by 2050. 43