All of Saudi Arabia’s planned upstream oil projects fit within a budget consistent with a two-degree Celsius rise in global warming, according to a new report released by the climate think-tank Carbon Trackers.

On a global level, hydrocarbon projects worth $1.6tn will no longer be economically viable if the world implements the policies needed to meet the targets set out in the 2015 Paris agreement, according to the Carbon Tracker analysis.

Canadian oil sands and Arctic resources are some of the most exposed assets, with a total of $545bn is at risk in the US and $110bn in Canada.

Projects in low-cost producer countries in the Middle East are amongst the least exposed to measures such as carbon taxes and more stringent emissions regulation, according to the report. These countries include Saudi Arabia, Iran, Iraq and Kuwait.

While upstream oil projects in low-cost producer countries in the Middle East are likely to remain profitable – margins may narrow and these nations could struggle to balance their budgets, according to Carbon Trackers.

“Large oil exporting countries typically require a certain oil price to balance their governments’ budgets,” it says.

“We do not attempt to predict oil prices, but suggest that all other things being equal, lower demand is likely to equal lower oil prices on average.”

“Hence while low- cost producers may be able to profitably maintain production from their oil fields even in the low demand scenarios that lead to a relatively good climate outcome, that is not to say that those that are more reliant on oil revenues might not have uncomfortable decisions to make.”

Oil projects that are currently planned or under execution in the GCC comes to a total of $416bn.