Asian Development Bank boosts climate financing goal to $100bn

Asian Development Bank boosts climate financing goal to $100bn
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Updated 12 October 2021

Asian Development Bank boosts climate financing goal to $100bn

Asian Development Bank boosts climate financing goal to $100bn
  • Aims to launch its concept for retiring coal-fired power plants at the COP26

WASHINGTON: The Asian Development Bank’s chief said on Tuesday said the lender will boost its climate financing goals by $20 billion to a new target of $100 billion for the 2019-2030 period and aims to launch its concept for retiring coal-fired power plants at the COP26 climate conference in Scotland next month.

The plans, disclosed by ADB President Masatsugu Asakawa in an interview with Reuters, increase a previous $80 billion goal for climate financing for developing countries in Asia for the decade announced in 2018.

“The fight against climate change will be won or lost in Asia and the Pacific, and we are committed to serving as a climate bank and a long term climate partner for our region,” Asakawa said.

The additional $20 billion in financing support will provide support for climate mitigation efforts including low-carbon energy sources, climate adaptation projects and private sector projects.

Asakawa said ADB now plans for $66 billion in financing for climate mitigation financing through 2030, including for new energy storage, energy efficiency and low-carbon transportation investments. The Manila-based lender will plan for climate adaptation financing of $34 billion, including agriculture, urban and water adaptation projects.

The bank also plans to boost its private sector operations to attract more private sector capital to finance new climate technologies and innovations, using $12 billion from its balance sheet to attract up to $30 billion in new private capital, due to increased demand for such financing, Asakawa said.

The plans were presented on Tuesday to US Treasury Secretary Janet Yellen, who had convened a meeting with multilateral development banks, including ADB and the World Bank, to discuss their efforts to boost climate financing in line with the 2015 Paris Agreement.

Asakawa said the group has finished an initial feasibility study and is now embarking on a longer study of the concept in three target countries — Vietnam, the Philippines and Indonesia.

ADB and its partners, including British insurer Prudential , lenders Citi and HSBC and BlackRock Real Assets, are aiming to complete and launch a pilot investment fund in 2022 and make its initial power plant purchase next year or early 2023.

The concept is not included in the ADB’s overall climate financing goals, because most of the money will come from private investors and donor sources, including philanthropists, he said.

“Even now, some philanthropists have already shown interest in investing in this new initiative. So we plan to launch the ETM at COP26 in Glasgow,” Asakawa said.


Qatar approves its budget, expects to revenue to rise by 22.1%

Qatar approves its budget, expects to revenue to rise by 22.1%
Updated 18 sec ago

Qatar approves its budget, expects to revenue to rise by 22.1%

Qatar approves its budget, expects to revenue to rise by 22.1%

Qatar has approved its budget for the 2022 fiscal year, the country’s Minister of Finance Ali Al Kuwari said in a press conference on Tuesday.

Revenues are expected to amount to 196 billion riyals ($53.8 billion), a 22.4 percent rise compared to last year’s budget estimates, Asharq reported. 

Estimates for the budget were made while assuming oil prices to be $55 per barrel during the year on the back of healthier global energy prices.

Additionally, expenditures are predicted to hit 204.3 billion riyals, growing by an annual rate of 4.9 percent.

This will lead to a budget deficit of 8.3 billion riyals. Al Kuwari added that this deficit will be addressed through current monetary balances and the issuance of local and foreign debt instruments if needed.

EU’s economy

Output in the EU expanded by a quarterly rate of 2.1 percent in this year’s third quarter, according to preliminary estimates by Eurostat. 

Austria experienced the highest rise in activity, recording an economic growth rate of 3.9 percent. France and Portugal came next, as their economies widened by 3 percent and 2.9 percent, respectively.

Household consumption mainly drove the production’s rise in the region, going up by 4 percent, accelerating from the previous quarter’s 3.7 percent expansion. 

Government final consumption expenditure climbed by 0.3 percent while gross fixed capital formation declined by 0.6 percent.

Meanwhile, employment growth reached 0.9 percent in the third quarter of 2021 when compared to the previous quarter.

In addition, the euro area’s Indicator of Economic Sentiment improved by 0.9 points in December to hit 26.8 points, Zew, a Germany economic policy institute, said. 

However, the outlook was different for Germany, as its sentiment indicator fell by 1.8 points to reach 29.9 points. Deteriorations caused by the pandemic, as well as supply chain disruptions, are dragging the German economy down, the Mannheim-based firm noted.

Economic expectations also fell, signalling that forecasts about healthy short-term growth are not gaining momentum.

Moreover, the country’s industrial production went up by a monthly rate of 2.8 percent in October, preliminary estimates by Germany’s Federal Statistics Office showed.

In particular, production of capital goods widened by 8.2 percent while output of intermediate goods dropped by 0.4 percent.

Japan’s household spending

Household spending in Japan continued to fall, on an annual basis, for the third month in a row. This was attributed to weak consumer sentiment that is still recovering from the pandemic.

Spending by the sector dropped by a yearly rate of 0.6 percent in October, compared to a 1.9 percent fall in the previous month.

The country’s government recently introduced a $490 billion stimulus package to boost the economy, unlike other countries that are starting to roll back on their spending programs, Reuters reported.

Australia’s monetary policy

Australia’s central bank maintained its monetary policy and interest rate unchanged. The decision was driven by concerns over omicron, the new coronavirus variant.

The country’s interest rate remained at 0.1 percent, according to Bloomberg. The bank noted that it will raise interest rates when inflation reaches its target of 2-3 percent.

The bank added that the labor market and economy are experiencing upturns.

China’s trade

Exports and imports in China grew annually by 22 percent and 32 percent in November when compared to a year earlier, reaching all-time records.

Yet, exports growth slowed down due to a thinning demand and a rise in costs.


Yemeni rial bounces back as central bank restructured

Yemeni rial bounces back as central bank restructured
Updated 2 min 1 sec ago

Yemeni rial bounces back as central bank restructured

Yemeni rial bounces back as central bank restructured

AL-MUKALLA: The Yemeni rial recovered on Tuesday by roughly 30 percent hours after the Yemeni president reshuffled the country’s central bank board in a bid to rein in the rapid currency devaluation. 

Local moneychangers told Arab News that the Yemeni rial began bouncing back on Monday night when President Abed Rabbo Mansour Hadi dismissed the governor of the Aden-based central bank and his deputy. 

By Tuesday morning, the Yemeni currency rose from 1,700 to 1,100 against the dollar before dropping again to 1,250 in the afternoon. 

The rial has rapidly tumbled during the past couple of weeks, reaching a historic record low of 1,750 this week, compared to 215 in early 2015. 

Yemen’s president appointed Ahmed bin Ahmed Ghaleb as the new governor and head of the central bank’s administrative board. Mohammed Omer Banaja was appointed his deputy. 

The official news agency reported that the president authorized the Central Agency for Control and Accountability to monitor the bank’s current and previous financial activities. 

Four previous central bank chiefs, all appointed Hadi, failed to prevent the rial’s plunge despite their expertise and strong educational backgrounds.

The central bank had closed dozens of exchange firms and shops that violated the bank’s monetary rules and were involved in speculative activities on foreign currency. The central bank also ordered banks in the Houthi-controlled areas to move offices and operations to Aden, or face punitive measures and provided fuel and food importers with dollars. The rial continued losing value against the dollar, as several blacklisted firms and banks continued operations  in the Houthi-controlled Sanaa.

Mustafa Nasr, director of the Economic Media Center, has urged local and international support to the bank’s new administration to succeed in putting into place economic policies and also demanded resuming the flow of oil and gas exports and reviving money-generating state bodies. “

Richard Oppenheim, British ambassador to Yemen, said the reshuffle of the bank’s administrative board would help the Yemeni government carry out vital reforms to steady the economy.


Bezos donates $443m to fight climate change 

Bezos donates $443m to fight climate change 
Updated 24 min 26 sec ago

Bezos donates $443m to fight climate change 

Bezos donates $443m to fight climate change 

JEDDAH: Jeff Bezos has handed over $443 million to climate organizations as part of his $10 billion commitment to tackle global warming.

About $130 million is allocated to help the Justice40 initiative, an environmentally focused effort by President Joe Biden’s administration, according to Bloomberg.

Another $261 million will fund a plan to protect 30 percent of land and sea by 2030, concentrating on the Congo Basin and tropical Andes. 

The world’s second-richest person gave out $791 million to 16 organizations last year, promising to distribute the full $10 billion amount by 2030, Bloomberg reported.


UAE’s Chimera invests $100m in Egyptian billionaire Naguib Sawiris’ Gemini 

UAE’s Chimera invests $100m in Egyptian billionaire Naguib Sawiris’ Gemini 
Updated 36 min 17 sec ago

UAE’s Chimera invests $100m in Egyptian billionaire Naguib Sawiris’ Gemini 

UAE’s Chimera invests $100m in Egyptian billionaire Naguib Sawiris’ Gemini 

RIYADH: Egyptian billionaire Naguib Sawiris has announced a $100 million deal with Abu Dhabi’s Chimera for investment in Egypt’s real estate.

Through its subsidiary, Chimera subscribed to a capital increase in Egypt’s Gemini Global Development in return for acquiring a minority stake in the company, Asharq reported.

This capital increase aims to develop and expand the real estate activities of Gemini Global Development Egypt through Ora Developers.

Naguib Sawiris said Ora Developers has always aimed to search for opportunities that expand their offerings to a larger base of customers in various markets, while partnering with global investors, contractors and retailers. 

“Through this partnership, Chimera continues to grow and further enhance its global portfolio by investing in a prominent player operating in a high growth sector in Egypt,” Chimera Chairman Syed Basar Shueb said. 


BitMart pledges to compensate users for $150m hack: Crypto Wrap

BitMart pledges to compensate users for $150m hack: Crypto Wrap
Updated 58 min 18 sec ago

BitMart pledges to compensate users for $150m hack: Crypto Wrap

BitMart pledges to compensate users for $150m hack: Crypto Wrap

RIYADH: Crypto exchange BitMart has experienced a security breach that has led to hackers withdrawing around $150 million in cryptocurrency, Bloomberg reported.

Blockchain security firm PeckShield estimates the total loss could run as high as $200 million.

Last week, BitMart closed a Series B funding round led by New York-based private equity firm Alexander Capital Ventures that valued the crypto exchange at more than $300 million.

BitMart will use its own funding to compensate users affected by this hack, according to CEO Sheldon Xia's tweet.

“No user assets will be harmed,” he tweeted, adding the company expects to resume deposit and withdrawal functions on Tuesday.

Also last week, crypto lender Celsius network, which has raised funds from major investors including Canadian pension fund Caisse de Dépôt et Placement du Québec, confirmed that it lost funds as a result of the hack of BadgerDAO, a decentralized finance platform.

Mining

Authorities in Russia and Ukraine have shut down a number of farms involved in the illegal mining of cryptocurrencies allegedly powered by stolen electricity.

"An audit revealed an unauthorized connection to the power grid, theft of electricity and illegal seizure of land for the operation of equipment designed to perform cryptographic calculations related to the mining of digital currencies," Ekaterina Korotkova from the Moscow Interregional Transport Prosecutor’s Office said.

The cost of illegally consumed electricity used to operate mining equipment exceeds 500,000 rubles per day ($7,000), Korotkova explained.

The authorities have filed a criminal case and intend to prosecute the owners of the crypto-mining facility.

Trading

Bitcoin, the leading cryptocurrency in trading internationally, traded higher on Tuesday, rising by 5.39 percent to $51,010 at 4:43 p.m Riyadh time.

Ether, the second most traded cryptocurrency, traded at $4,355, up 7.47 percent, according to data from Coindesk.