Saudi Arabia fleshes out its green targets during first day of SGI forum

Special Saudi Arabia fleshes out its green targets during first day of SGI forum
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Launched last year, the Saudi Green Initiative has met with successes in green technology, afforestation, conservation and the transition to renewable energy. (Supplied)
Special Saudi Arabia fleshes out its green targets during first day of SGI forum
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Updated 12 November 2022

Saudi Arabia fleshes out its green targets during first day of SGI forum

Saudi Arabia fleshes out its green targets during first day of SGI forum
  • Kingdom aims to achieve the SGI target of placing 30 percent of its land and sea territory under protection by 2030
  • It will also plant more than 600 million trees within the same time frame — an increase of more than 150 million over the initial aim

SHARM EL SHEIKH, Egypt: Fresh details about Saudi Arabia’s Green Initiative targets were revealed on Friday during the first day of the SGI Forum in the Egyptian city of Sharm El-Sheikh.

The Saudi Green Initiative, launched by Crown Prince Mohammed bin Salman last year along with a wider Middle East Green Initiative, presents a road map for the Kingdom’s climate action and paves the way for it to achieve its goal of achieving net-zero emissions by 2060.

Speaking at the forum, which is taking place on the sidelines of the UN Climate Change Conference, COP27, Saudi Energy Minister Prince Abdulaziz bin Salman said his country is supporting climate initiatives in the Kingdom as well as in developing countries.

He said innovation is key to supporting the next generation, protecting the environment and developing renewable energies.

However, he added that new practices are needed to safely use current energy sources and work towards transition.

The prince called on the public to be mindful of energy consumption, and said Saudi Aramco and other national bodies are taking steps to reduce waste.




Prince Abdulaziz bin Salman, the Saudi minister of energy (left), called on other nations to follow the Kingdom’s lead in the green transition. (Supplied)

“The entire government is working in unison to deliver the Saudi Green Initiative,” he said.

“Next year, we will be finalizing the plans for developing 10 more renewable-energy projects and connecting an additional 840 megawatts of solar PV (photovoltaic) power to our grid.

“Today, we are announcing that we will launch a greenhouse gas crediting and offsetting scheme at the beginning of 2023 to support and incentivize efforts and investments in emission reduction and removal projects in all sectors in the Kingdom.”

Over the past year, Saudi Arabia has accelerated the pace of its action on climate change. It aims to achieve the SGI target of placing 30 percent of its land and sea territory under protection by 2030. It will also plant more than 600 million trees within the same time frame — an increase of more than 150 million over the initial aim.

Prince Abdulaziz also announced the signing of an agreement with Saudi Aramco to develop one of the largest planned carbon capture and storage hubs in the world.

 

 

Scheduled to open in 2027 in Jubail Industrial City, it will extract and store nine million tons of carbon dioxide a year in its initial phase. The Kingdom aims to store 44 million tons a year by 2035.

Three carbon-capture pilot projects were also announced at the summit, involving King Abdullah University of Science and Technology, the NEOM smart city, the Saudi Electricity Company, Alsafwa Cement Company, Ma’aden and Gulf Cryo.

Since the launch of the SGI, more than 18 million trees have been planted in the Kingdom. Of those, 13 million are mangroves.

The regeneration of Saudi Arabia’s natural wetland forests aims to provide a living barrier against shoreline erosion and a natural defense against climate change; the trees sequester five times more carbon than tropical forests.

The Kingdom has also launched 17 initiatives across the country to restore natural greenery. As part of its contribution to the trees target, the NEOM smart city project this year announced that 1.5 million hectares of land would be rehabilitated, and 100 million native trees, shrubs and grasses planted by 2030.

“Saudi Arabia is taking environmental action on a national, regional and international level,” Environment Minister Abdulrahman Al-Fadley told the summit.




Saudi Environment Minister Abdulrahman Al-Fadley speaks during an SGI Forum panel. (AFP)

“As a global community, we have to work comprehensively and take multiple actions in parallel.

“In Saudi Arabia we have a clear strategy that identifies the gaps we have in our environmental policy and works to find nature-based solutions.”

Khaled Alhusaini, the senior engineer at the Saudi Ministry of Energy, said the Saudi Green Initiative paves the way for integrated work within the Kingdom’s different entities, ministries, organizations and companies working in the same strategic directions, “believing that shaping tomorrow through today’s actions.”

“The minister in the Ministry of Energy is working on many projects and initiatives, such as renewable energy, clean hydrogen production, and carbon capture utilization policy,” he told Arab News.

Regarding the youth, he stressed they play an important role and have employed several youths within the energy ministry, in the hope that they can deliver their strategic objectives and KPIs, and SGI aims to deliver on that.

“The big message for the world is that Saudi Arabia is changing, Saudi Arabia is making a big difference here within the Middle East region, so we are enjoying that (we can) deliver the message to that and to the people here,” he said.




The SGI Forum included exhibits from Saudi companies involved in climate action. (Supplied)

“So many people are impressed by the efforts of Saudi Arabia, they say they have seen the projects, what is done, what is going on and what is the plan for the future,” he said. “This is a big message to the world that Saudi Arabia has a dream and acting for that’s achievable.”

Industry Minister Bandar Al-Khorayef highlighted the importance of mining to the country’s economic development. He told the forum that his government will keep “feeding” opportunities to companies that are interested in tapping into the Kingdom’s estimated $1.3 trillion mining sector.

Al-Khorayef said Saudi Arabia’s burgeoning mining industry could learn from its oil, gas, and petrochemical sectors on how to scale up production.

The minister added that the Kingdom has many advantages over other nations.

“Globally, the time it takes to get a mining license is just ridiculous. Saudi Arabia provides mining licenses in 90 to 180 days, but globally, it takes years,” he said.




Industry Minister Bandar Al-Khorayef highlighted the importance of mining to the country’s economic development. (Twitter: @Gi_Saudi)

He added that the ministry carried out three license auctions this year and that five more are coming up next year.

“In addition to our resources, our geographical location, we believe Saudi Arabia could be a great asset for the global community’s resilience,” he said.

“Looking at our experience, how we link oil and gas business to the petrochemical business, where it is really a seamless operation, where we were able to get the highest impact.

“That is why we are more competitive. If we do the same thing in mining, I am sure that we can do much more than expected.”

Tarek El-Molla, the Egyptian minister of petroleum and mineral resources, told the COP27 summit that energy efficiency, reducing emissions, and decarbonization are among his country’s main priorities but he called on private companies to play a more active role.

He said Egypt wants to be a major partner in environmental and carbon initiatives and is using COP27 as a first step in the run-up to the next global climate summit, COP28, in the UAE next year.

 

 

 


Oil Updates - Prices fall as US holds off refilling strategic reserve

Oil Updates - Prices fall as US holds off refilling strategic reserve
Updated 24 March 2023

Oil Updates - Prices fall as US holds off refilling strategic reserve

Oil Updates - Prices fall as US holds off refilling strategic reserve

TOKYO: Oil prices extended losses on Friday on worries about a potential oversupply after US Energy Secretary Jennifer Granholm said refilling the country’s Strategic Petroleum Reserve may take several years, according to Reuters.

Brent crude fell 24 cents, or 0.32 percent, to $75.67 a barrel by 0412 GMT, while US West Texas Intermediate crude futures slipped 24 cents, 0.34 percent, to $69.72 a barrel.

Both benchmarks, which fell about 1 percent on Thursday, were still on track for a weekly gain of about 3 percent-4 percent, recovering from their biggest weekly declines in months last week due to the banking sector crisis and worries about a possible recession.

“There is a sell-off from the view that the United States will not refill oil reserve even if the WTI prices are at $67-$72 a barrel,” said Hiroyuki Kikukawa, general manager of research at Nissan Securities.

The White House said in October it would buy back oil for the SPR when prices were at or below about $67-$72 per barrel.

Granholm told lawmakers that it would be difficult to take advantage of the low prices this year to add to stockpiles, which are currently at their lowest level since 1983 following sales directed by President Joe Biden last year.

Nissan Securities’ Kikukawa said continued crude supply from Russia to the global market was also weighing on oil which, together with a lingering anxiety about the banking sector, could push benchmarks to test their lows hit earlier this week.

Russian Deputy Prime Minister Alexander Novak said a previously announced cut of 500,000 barrels per day (bpd) in Russia’s oil production would be from an output level of 10.2 million bpd in February, the RIA Novosti news agency reported.

That would mean Russia is aiming to produce 9.7 million bpd between March and June, when the production cut will be in force, according to Novak — a much smaller reduction in output than Moscow previously indicated.

The oil price downside was, however, cushioned by strong demand expectations from China, with Goldman Sachs saying commodities demand was surging in China, the world’s biggest oil importer, with oil demand topping 16 million bpd.

The bank forecast Brent would reach $97 a barrel in the second quarter of 2024.

A more than 1 percent decline in the dollar in the past week, which makes commodities priced in the greenback cheaper for holders of other currencies, capped downside price pressures. 


Scandal-plagued Japan tech giant Toshiba gets tender offer

Scandal-plagued Japan tech giant Toshiba gets tender offer
Updated 24 March 2023

Scandal-plagued Japan tech giant Toshiba gets tender offer

Scandal-plagued Japan tech giant Toshiba gets tender offer
  • Toshiba's deep troubles began with a sprawling accounting scandal in 2015, involving books being doctored for years
  • Its US nuclear arm Westinghouse filed for bankruptcy in 2017, after years of deep losses as safety costs soared

TOKYO: Scandal-embattled Japanese electronics and technology manufacturer Toshiba has accepted a 2 trillion yen ($15 billion) tender offer from Japan Industrial Partners, a buyout fund made up of the nation’s major banks and companies.
If the proposal succeeds, it will be a major step in Toshiba’s yearslong turnaround effort, allowing it to go private and delist from the Tokyo Stock Exchange. But overseas activist investors own a significant part of Toshiba’s shares, and it’s unclear if they will be happy with the latest bid.
Tokyo-based Toshiba Corp. announced its board accepted the bid at 4,620 yen ($36) a share late Thursday. Toshiba closed at 4,213 yen ($32) a share Thursday, and is trading at 4,474 yen ($34) early Friday. The offer was announced after trading closed in Tokyo.
The move comes while the world’s financial sector is in turmoil over the ripple effects from the recent collapse of banks in the US
The critical point is that the latest offer, if successful, will keep Toshiba’s business Japanese in an alliance with Japanese partners.
Japan Industrial Partners, set up in 2002 to restructure Japanese companies, lists big names among where it has invested, such as Sony, Hitachi, Olympus and NEC.
The consortium includes about 20 Japanese companies, such as Orix Corp., a financial services company, electronics manufacturer Rohm Co. and the megabanks such as Sumitomo Mitsui Banking Corp., according to Japanese media reports.
The deep troubles at Toshiba began with a sprawling accounting scandal in 2015, involving books being doctored for years. That added to its woes related to its nuclear energy business.
Its US nuclear arm Westinghouse filed for bankruptcy in 2017, after years of deep losses as safety costs soared. Toshiba is also involved in the decommissioning effort at the Fukushima nuclear plant heavily damaged by an earthquake and tsunami in March 2011.
Toshiba has gone through several presidents over the years, as the brand once prized for making household appliances, laptops, batteries and computer chips, became the target of overseas activist shareholders.
The latest proposal still needs to go through regulatory reviews in several countries, including the US, Vietnam, Germany and Morocco. The process is expected to take several months.
Toshiba has been trying to go private in recent years. Proposals to split Toshiba into three, and then two, companies were rejected by shareholders. Delisting will allow Toshiba to leave behind the activist investors.
Toshiba had its humble beginnings in a telegraph equipment factory in 1875. The brand had been synonymous with the power of modern Japan’s manufacturing sector. It has sold parts of its operations, including its flash-memory business, now known as Kioxia, although Toshiba remains a stakeholder in Kioxia.
Whether Toshiba can get back on a solid growth track remains uncertain. Last month, Toshiba lowered its profit forecast for the fiscal year through March to 130 billion yen ($1 billion), down from an earlier projection for a 190 billion yen ($1.5 billion) profit.
 


US Commerce Department adds 14 Chinese firms to red flag list

US Commerce Department adds 14 Chinese firms to red flag list
Updated 24 March 2023

US Commerce Department adds 14 Chinese firms to red flag list

US Commerce Department adds 14 Chinese firms to red flag list
  • Chinese Embassy accuses US of abusing export control measures and using state power to suppress and contain foreign companies

WASHINGTON: The Biden administration on Thursday added 14 Chinese companies to a red flag list, forcing US exporters to conduct greater due diligence before shipping goods to them because US officials have been unable to inspect the listed entities.
Being added to the list can potentially start a 60-day clock that could trigger much tougher penalties.
“Enforcing our export controls is a crucial part of protecting American national security,” US Deputy Secretary of Commerce Don Graves said in a statement following the announcement. “We are committed to using all of the tools at our disposal to establish how advanced US technology is being used around the globe.”
ECOM International and HK P&W Industry Co. Ltd. were among those added to the list and did not respond to requests for comment.

A spokesperson for the Chinese Embassy in Washington said “China strongly deplores and firmly opposes” moves by the United States to “abuse export control measures” and use “state power to suppress and contain foreign companies.”
“The US side should immediately stop its wrong practices. China will take necessary measures to resolutely safeguard the legitimate rights and interests of Chinese companies,” the spokesperson added.
The United States has used restrictions on exports of US goods as a key tool to thwart Beijing’s technological advances, ratcheting up tensions between the two countries.

 


Fed comments, US crude stock build hit oil market

Fed comments, US crude stock build hit oil market
Updated 23 March 2023

Fed comments, US crude stock build hit oil market

Fed comments, US crude stock build hit oil market

LONDON: Oil prices dipped on Thursday, having hit their lowest since late 2021 earlier this week, after Federal Reserve Chair Jerome Powell highlighted banking sector credit risks for the world’s largest economy, while US crude stockpiles swelled.

Brent crude futures were down 54 cents, or 0.7 percent, to $76.15 a barrel at 0929 GMT, while US West Texas Intermediate crude dropped 62 cents, or 0.9%, to $70.28.

Powell said on Wednesday that banking industry stress could trigger a credit crunch, with “significant” implications for an economy that US central bank officials projected would slow even more this year than previously thought.

HIGHLIGHTS

Goldman Sachs said on Thursday that demand from China continued to surge across the commodity complex, with oil demand topping 16 million barrels per day.

The bank forecast Brent to reach $97 a barrel in the second quarter of 2024.

US crude oil stockpiles rose unexpectedly last week to their highest in nearly two years, latest data from the Energy Information Administration showed.

Crude inventories rose in the week to March 17 by 1.1 million barrels to 481.2 million barrels, the highest since May 2021. Analysts in a Reuters poll had expected a 1.6-million-barrel drop.

The dollar slid to a seven-week low against a basket of other currencies, providing a price floor for oil as a weaker greenback makes oil cheaper for holders of other currencies.

Also supportive, Goldman Sachs said on Thursday that demand from China, the world’s biggest oil importer, continued to surge across the commodity complex, with oil demand topping 16 million barrels per day.

The bank forecast Brent to reach $97 a barrel in the second quarter of 2024.


Closing bell: TASI up on rising investor confidence 

Closing bell: TASI up on rising investor confidence 
Updated 23 March 2023

Closing bell: TASI up on rising investor confidence 

Closing bell: TASI up on rising investor confidence 

RIYADH: Saudi Arabia’s Tadawul All Share Index rose by 95.88 points, or 0.93 percent, on Thursday to close at 10,446.39, driven by a rise in investor confidence, on the first session of Ramadan. 

The MSCI Tadawul 30 Index went up by 1.01 percent to 1,423.28, while the parallel market Nomu lost 37.60 points, or 0.20 percent, to close at 19,056.84. 

The total trading turnover of the benchmark index on Thursday was SR4.4 billion ($1.17 billion).

The top performer on Thursday was Al Kathiri Holding Co. as its share prices increased by 10 percent to SR50.60. 

Some of the other major gainers on Thursday were National Medical Care Co. and Bupa Arabia for Cooperative Insurance Co., whose shares went up by 9.95 percent and 6.45 percent respectively. 

Thimar Development Holding Co. was the worst performer on Thursday as its share prices went down by 9.98 percent to SR48.25 at the closing bell. 

Another worst performer on Thursday was Al Sagr Cooperative Insurance Co. whose share prices went down by 9.41 percent to SR13.58. 

On the announcements front, Amana Cooperative Insurance Co. reported that it trimmed its losses to SR43.80 million in 2022, from SR121.40 million in 2021. However, that had no positive impact on its share prices which fell by 1.25 percent to SR9.46. 

Saudi Arabian Cooperative Insurance Co. also narrowed its losses in 2022. Compared to the SR62.6 million loss it incurred in 2021, the company trimmed its losses to SR37.2 million in 2022. As the company performed well in 2022 compared to 2021, its share prices rose by 1.90 percent to SR11.82. 

Another company that announced its financial report on Thursday was Sumou Real Estate Co. The firm’s net profit in 2022 rose to SR87.6 million, an 8 percent rise from SR81.2 million in the previous year. 

As the company’s profit increased, Sumou Real Estate Co.’s board of directors declared a 10 percent cash dividend for the second half of 2022, at SR1 per share, amounting to SR37.5 million, a bourse statement revealed. 

Sumou Real Estate Co.’s share prices remained unchanged at SR45 at the end of today’s trading session. 

Meanwhile, Saudi Top for Trading Co. also announced its financial results for 2022. The company reported a net profit of SR32.77 million for 2022, an increase of 92 percent from a net profit of SR17.09 million in the year-earlier period. Amid a rise in profit, the company’s share prices dipped 0.53 percent to SR93.

Saudi Airlines Catering Co. reported a net profit of SR257.10 million in 2022, from SR14.10 million in 2021. Driven by the increase in profit, the company’s board of directors recommended a 5 percent cash dividend, at SR0.5 per share, for 2022, amounting to SR41 million. 

Saudi Airlines Catering Co.’s massive rise in net profit was also reflected in its share price, as it went up by 5.06 percent to SR85.10.