Market mechanism for greenhouse gas emissions launched in ... - Arab News
Market mechanism for greenhouse gas emissions launched in Saudi Arabia | Arab News
RIYADH: Saudi Arabia has launched a market mechanism to compensate and balance greenhouse gases in the Kingdom.
The initiative was unveiled by the Minister of Energy Prince Abdulaziz bin Salman at the Middle East and North Africa Climate Week 2023, and is part of Saudi Arabia’s drive to hit zero neutrality in carbon emissions by 2060.
Morocco welcomes IMF and World Bank annual meeting a month after deadly earthquake
IMF and WB decided in 2018 to host their annual meeting in Morocco, bringing the affair to the African continent for the first time in 50 years
Updated 34 min 17 sec ago
AP
MARRAKECH: Less than a two-hour drive from where families sleep in tents and earthquake rubble remain in piles, the world’s most powerful financial institutions are gathering for a week of discussions on economic challenges during times of war, inequality and climate change. The International Monetary Fund and World Bank decided in 2018 to host their annual meeting in Marrakech, Morocco, bringing the affair to the African continent for the first time in 50 years. Their original timeline was delayed by the pandemic, but the meeting beginning Monday arrives at an apropos time. After a devastating earthquake last month killed nearly 3,000 and wreaked $11.7 billion in damages, both officials and civil society groups are eagerly anticipating discussions about how to promote economic resiliency in light of natural disaster. “In no other area is the need for international cooperation as evident as in addressing the existential threat of climate change. The world has a responsibility to stand with vulnerable countries as they deal with shocks they have not caused,” Kristalina Georgieva, the IMF’s managing director said in a speech on Thursday. Often lenders of last resort, the IMF and the World Bank use billions in loans and assistance to buoy struggling economies and encourage countries operating in deficit to implement reforms they say promote stability and growth. Still, they’ve been criticized for excluding the neediest nations from their governance and decision-making process, demanding painful spending cuts. “It’s a time of multiple crises, particularly for Arab and African countries who’ve been hit by various exogenous shocks not of their making,” said Iskander Erzini Vernoit, the director of the Morocco-based Imal Initiative for Climate & Development. “’There’s this massive financing gap on the order of trillions for developing countries and also the key question of how affordable the financing can be.” Those shocks include the pandemic and rising energy and food costs spurred by the war in Ukraine. Those challenges are particularly pronounced in Africa, where many countries spend more on debt than health care and education combined. Critics say the terms of many loans offered force governments from Egypt to Zambia to choose between paying debt or implementing unpopular spending cuts. In the aftermath of the earthquake, the IMF approved a $1.3 billion loan to “help strengthen its preparedness and resilience against natural disasters” in Morocco — a longtime borrower who has used loans and credit to weather economic downturns, including most recently when the pandemic hit tourism and exports particularly hard. The institution has pushed Morocco to balance its budget and continue raising interest rates. In mountain villages far from the city’s swanky hotels, midrise apartments and billboards advertising new construction, roads remain unpaved, water can be scarce and jobs hard to come by. The earthquake, residents say, exacerbated disparities plaguing rural areas and compounded struggles facing already-impoverished communities. Signs of the country’s rapid economic development will be on display in Marrakech, where streets have been swept and damaged landmarks. But laid-off miner Brahim Ait Brahim — who lives in Anerni, a mountain village near the quake’s epicenter — said he’s still waiting for emergency financial and housing assistance one month after his house was destroyed in the earthquake. “That’s Marrakech. It’s the capital for tourism,” Ait Brahim said, describing it as the face of Morocco. “Here’s it’s hidden behind.”
Updated 08 October 2023
Haifa Alshammari
RIYADH: Highlighting the latest technologies revolutionizing environmental progress at MENA Climate Week in the Saudi capital, speakers called for adopting an all-inclusive approach to ensure energy transition.
The MENA Climate Week, taking place in Riyadh from Oct. 8 to 12, will contribute to the UN Climate Change Conference, also known as COP28, in Dubai at the end of the year.
Countries in the Middle East and North Africa region are working to reduce the threat of climate change by utilizing cutting-edge techniques and adapting more modern approaches. However, economic challenges delay the speed at which certain regions acclimate to more eco-friendly practices.
“We need to make sure that transition doesn’t leave anyone behind,” emphasized Borge Brende, president of the World Economic Forum, while discussing the various levels at which countries are progressing toward their sustainability goals.
Saudi Energy Minister Prince Abdulaziz bin Salman confirmed that the Kingdom intends to focus on continuous environmentally-conscious growth.
“Climate action is most effective and most ambitious when aligned with the country’s various ambitious prospects,” the minister noted.
Joseph McMonigle, the secretary-general of the International Energy Forum, highlighted keynotes, including how the MENA region has shown outstanding dedication to ensure progress through interventions and assuming a leadership role.
Following this, a panel was assembled composed of industry experts, including Simon Stiell, executive secretary of UN Climate Change, Cuban Ambassador Pedro Luis Pedroso Cuesta, and Khalid Abuleif, the Saudi ministry of energy sustainability adviser.
The panel also included Adnan Amin, CEO of COP28, and Sherif Abd El Rahim, the head of climate change at the Ministry of Environment in Egypt.
The panelists discussed realistic future sustainability prospects, explaining how multiple countries in the region are exhibiting impressive progress in the fields of technology and economics. Others, however, highlighted the gaps that need to be addressed and stressed the necessity of coping strategies to deal with the rapidly growing crisis.
MENA Climate Week 2023 encourages discussions that bridge environmental and climate experts with high-level decision-makers. These sessions serve as platforms for conversations on opportunities within the global climate landscape. It also enables Saudi Arabia to strategize further efforts to transition to cleaner energy.
Updated 08 October 2023
RIYADH: The Public Investment Fund and Saudi Electricity Co. on Sunday launched a company to develop electric vehicle charging infrastructure in the Kingdom.
According to an official statement, the Electric Vehicle Infrastructure Co. will “establish its presence in more than 1,000 locations, installing over 5,000 fast chargers by 2030 in cities across Saudi Arabia.”
The sovereign wealth fund will own a 75 percent stake in the company, while the SEC will hold the remaining 25 percent stake.
Omar Al-Madhi, co-head of MENA direct investments at PIF, said: “The company will spearhead the EV transition by deploying best-in-class, widely available EV charging infrastructure to drive the growth of the EV ecosystem. Through our partnership with SEC, we will be able to accelerate the creation of synergies across the EV supply chain, driving economic growth and diversification in line with Vision 2030, and positioning Saudi Arabia as a leader in the new electrified era of the automotive industry.”
The company aims to enhance Saudi Arabia’s automotive ecosystem, through collaboration with EV companies, by supplying the necessary charging stations to meet future demand.
It also aims to promote private sector participation in the development of its network of charging stations and support the localization of research and development and manufacturing of technologically advanced materials, ultimately building domestic expertise and resilience.
SEC CEO Khalid bin Hamad Al-Gnoon said: “SEC develops and implements strategies that aim to enhance Saudi Arabia’s position as a sustainable energy leader.”
Al-Jubeir urges a pragmatic approach based on each country’s unique characteristics
Updated 08 October 2023
Rawan Radwan
RIYADH: Calling for a “practical and pragmatic” approach to address climate change issues, the Saudi minister of state for foreign affairs and climate envoy stressed the need to adopt a strategy suited to every country’s unique environment.
Adel Al-Jubeir was speaking during a panel discussion on the first day of MENA Climate Week in Riyadh on Sunday.
“Every country is different,” he added, “and each must do what is best given its circumstances, resources, and environment.”
Al-Jubeir highlighted Saudi Arabia’s adoption of a circular carbon economy approach, involving over 77 initiatives and a substantial allocation of more than $186 billion for their implementation.
The panel also featured Mariam Almheiri, the UAE’s minister of climate change and environment; Shauna Aminath, minister of the environment, climate change, and technology of Maldives; and Rola Dashti, executive secretary of UN ESCWA.
FASTFACTS
The Paris Agreement, which aims to limit temperature increases to 1.5 degrees Celsius above pre-industrial levels, recognizes the need to significantly reduce the risks and impacts of climate change.
More than one-fifth of the world’s population already resides in regions where warming has exceeded 1.5C during at least one season, with a disproportionate impact on disadvantaged communities.
Recognizing the imperative for urgent action, they underscored the urgency of adapting to climate impacts. Panelists unanimously echoed the sentiment that the time to act is now, as the consequences of inaction are too grave to disregard.
In recent decades, countries around the world have witnessed record-breaking high temperatures, compelling scientists to confront the harsh reality of global temperature escalation. The global average temperature is on an upward trajectory, approaching the perilous threshold of 1.5 degrees above the historical average.
The Middle East and North Africa region, already grappling with arid landscapes, water scarcity, and extreme temperatures, is now confronting a mounting crisis in the form of climate change. The urgency to adapt to these climate-related challenges has never been more acute. The MENA region faces a convergence of climate-related challenges that imperil its economic stability, societal well-being, and environmental sustainability.
Panelists were of the view that by addressing vulnerabilities, seizing opportunities, and fostering regional collaboration, countries in the MENA region can pave the way for a more resilient and sustainable future in the face of climate change.
Speakers said adaptation is no longer an option and called for increased collaboration to confront the challenges posed by climate change. They stressed that collaborative initiatives and international support are indispensable in bridging resource gaps. Moreover, comprehensive data and research are urgently needed to better understand regional vulnerabilities and inform effective adaptation strategies.
Discussing the broader aspects of sustainable development, co-action, equity, and economic growth, Al-Jubeir emphasized that addressing climate change issues must be “practical, pragmatic, long-term, sustainable, a whole-of-government approach, and a whole-of-society approach.”
He also mentioned the launch of the Middle East Green Initiative, designed to foster regional multilateral collaboration in combating desertification, and tree planting, and supporting other countries in adopting a carbon economy approach.
Emphasizing the importance of various sectors in mitigating climate change effects, Almheiri pointed out the need for international collaboration to achieve the region’s goals.
“Every country possesses its unique resources and strengths,” she noted. “The purpose of COP(28) is to bring all parties together to collaborate and address a cause that affects us all in diverse ways.”
A sea turtle swimming among dead corals of a reef in Baa Atoll in Maldives. (AFP)
The Paris Agreement, which aims to limit temperature increases to 1.5 degrees Celsius above pre-industrial levels, recognizes the need to significantly reduce the risks and impacts of climate change. However, more than one-fifth of the world’s population already resides in regions where warming has exceeded 1.5C during at least one season, with a disproportionate impact on disadvantaged communities.
A 2023 analysis by the World Meteorological Organization indicated a 66 percent likelihood of annual average global temperatures surpassing the 1.5-degree Celsius threshold for at least one year between 2023-2027.
Low-lying islands and coastal nations, like the Maldives, are particularly vulnerable to climate change impacts. The Maldives faces challenges such as rising sea levels and water contamination, exacerbated by its low-lying geography. Saltwater intrusion into freshwater sources has forced the nation to rely on desalination plants for safe drinking water.
Shauna Aminath emphasized the gravity of the situation, stating: “With any temperature increase, it threatens the survival of our coral reefs, which serve as our islands’ primary protection.”
She further highlighted the contamination of freshwater sources on many Maldivian islands, necessitating significant investments in desalination plants, a costly endeavor for the nation.
While discussing the challenges in financing such adaptation projects, Aminath stressed the need to prioritize adaptation efforts. “We can’t secure enough finances to compensate for losses and damage. For small island nations like the Maldives, adapting and investing in adaptation are the only paths to survival.”
Estimating the global cost of losses due to climate change is challenging, but projections indicate that it could reach trillions of dollars per year by the end of the century.
In the Middle East and Africa, where freshwater is scarce and has a significant impact on food, agriculture, and water sectors, effective management of the food-water-energy nexus requires an integrated and holistic approach to resource governance.
Dashti underscored the importance of enhancing water diplomacy to ensure better water security and stability in the region. She pointed out that despite adaptation being a regional priority, the majority of financing received focuses on mitigation rather than adaptation, creating a significant mismatch in funding.
Based on the National Determined Contributions requests of 18 countries, there is a pressing need for $130 billion for water-related projects in the region, yet only $7 billion has been allocated in the last decade.
Despite the challenges with adaptation financing, the MENA region is witnessing promising collaborations and initiatives to address climate change adaptation. Some countries are implementing integrated water management plans that combine efficient water use with desalination technologies and wastewater treatment.
Additionally, various climate action projects explore renewable energy solutions, the restoration and protection of critical ecosystems like wetlands and mangroves, and innovative practices like fog water harvesting to enhance resilience to climate impacts and sequester carbon.
Updated 08 October 2023
Reina Takla Nour El-Shaeri
RIYADH: As Saudi Arabia sets its sights on deriving half of its energy mix from renewable sources by 2030, the Kingdom is actively advancing with 22.8 gigawatts of renewable energy projects.
In an interview with Arab News, Muneef Al-Muneef, general director of renewable energy policies at the Saudi Ministry of Energy, shed light on the Kingdom’s ongoing commitment to expanding its renewable energy portfolio.
“Right now, we have 22.8 GW of renewable energy projects under different stages of development; 2.8 GW will be operational before the end of the year,” Al-Muneef said.
He further explained that construction will soon commence on an additional 4 GW, with an extra 8 GW entering the execution phase following the ministry’s signing of power purchase agreements for these projects.
Furthermore, Saudi Arabia is set to tender another 8 GW of renewable energy projects before the year’s end, Al-Muneef revealed.
He added that these projects primarily comprise solar and wind energy initiatives strategically located across the Kingdom based on demand and potential.
Exploring new technologies, Al-Muneef explained that the Kingdom is continuously monitoring the performance of other innovations that can be used to achieve its national targets.
“We look at storage technologies and within storage. We look at battery storage. Even within battery storage, we look at whether it’s lithium-ion or vanadium redox; all technologies are welcome,” said Al-Muneef.
The ministry has also looked at pumped hydro storage and geothermal technologies.
“We don’t really tie ourselves to one. We’re consistently monitoring the potential of these technologies and their level of applicability in the Kingdom and whether these technologies can help us achieve our targets,” he added.
Furthermore, Al-Muneef underscored the pivotal role of hydrogen in charting a sustainable path forward.
He emphasized that hydrogen is poised to have a “vital role” in Saudi Arabia’s decarbonization efforts.
However, Al-Muneef pointed out the hurdles when embarking on clean energy initiatives. He mentioned that the global surge in renewable energy projects has intensified the strain on the supply chain.
Functional challenges have been inherent in renewable energy projects. For instance, when clouds obstruct solar panels or a lack of breeze in wind energy projects, the cost of operations to support these facilities increases.