Since the first industrial revolution, rising carbon emissions have caused harmful effects on our environment. There is a broad consensus that climate change is happening and that it is as a result of anthropogenic carbon emissions, primarily from burning fossil fuels. This raises concern for the future of our carbon-based world energy and world economy, particularly with economies heavily dependent on oil, such as Saudi Arabia. This book/dissertation aims to answer the question: How could Saudi Arabia, given its oil-based economy and vast oil reserves, respond to the challenges of climate change and the world's transitioning towards environmental sustainability, and away from fossil fuels. A Saudi sustainable carbon management 'system of innovation' (SSCMSI) was proposed. Given Saudi Arabia's heavy dependence on oil, which characterised its 'national system of innovation' (NSI) fabric, constructing an NSI around its energy sector was important. The proposed SSCMSI role includes: accelerating innovation in the energy sector, encouraging energy efficiency, accelerating the use of renewable energy, improving market conditions, supporting technology transfer from advanced economies, utilising international cooperation and mobilizing private sector investment in energy.