Re‑engineering Petrochemical Sustainability in the MENA Region: A PSRI Framework Aligning Decarbonization, Circularity and Digitalization with the UN SDGs
Description
The petrochemical industry in the Middle East and North Africa (MENA) is a cornerstone of global energy-intensive production yet faces mounting challenges from climate policies, market pressures, and the UN Sustainable Development Goals (SDGs). This paper develops and applies the Petrochemical Sustainability Readiness Index (PSRI)—the first sector-specific, non-compensatory composite index that integrates Decarbonization, Circularity, and Digitalization. Methodological innovations include weighted geometric aggregation, floor–ceiling adjustments, coverage penalties to address incomplete disclosure, and validation through 100,000 Monte Carlo simulations with sensitivity analysis. Beyond index construction, the study advances three novel dimensions. First, a systematic barrier analysis of 205 studies reveals structural obstacles across economic, regulatory, technological, organizational, and human capital domains. Second, scenario modeling and abatement cost curves quantify decarbonization pathways, identifying both high-potential and cost-effective options for emission reductions. Third, application of the PSRI to 2024 disclosures from SABIC and Borouge demonstrates differentiated strengths: SABIC outperforms in Decarbonization (0.568 vs. 0.319), Borouge leads in Digitalization (0.547 vs. 0.443), and both underperform in Circularity (0.215 and 0.096). The PSRI framework thus combines diagnosis, prescription, and benchmarking. It provides policymakers and industry leaders with a rigorous and practical tool to track readiness, overcome transition barriers, and design cost-effective pathways for petrochemicals in a decarbonizing world.
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Institutions
- Tanta University