In recent decades, climate change has become one of the most critical issues for international, national and local communities. The concept of a green economy arose in response to international environmental and climate issues, as well as their impact on development and economic well-being. The green economy, because of its potential to integrate the environmental, economic, and social components of sustainable development, has become a tool of attaining sustainable development and attracting international investment. For decades, Saudi Arabia’s economy has been highly vulnerable to oil price shocks. Climate change presents an additional challenge to Saudi Arabia’s economy as it affects both the oil and non-oil economic sectors. Cognizant of the potential threats posed by climate change, Saudi Arabia has expressed its intention to engage in restorative measures and planning in accordance with the Kingdom’s efforts towards economic diversification.