Oil Updates — Crude slips; BP says Ukraine war will accelerate transition to clean energy
Updated 30 January 2023
ARAB NEWS
RIYADH: Oil prices edged lower on Monday, even as Beijing pledged over the weekend to promote a consumption recovery that would support fuel demand.
Brent crude futures fell 31 cents, or 0.36 percent, to $86.35 a barrel at 08.20 a.m. Saudi time, while US West Texas Intermediate crude was at $79.45 a barrel, down 23 cents, or 0.29 percent.
On Saturday, China’s cabinet said it would promote a consumption recovery as the major driver of the economy and boost imports, state broadcaster CCTV reported.
Ukraine war to accelerate shift to clean energy: BP
Russia’s war in Ukraine is expected to weigh on long-term energy demand and accelerate the world’s shift to renewables and low-carbon power as countries boost domestic energy supplies, oil giant BP said in its latest report.
In its benchmark 2023 Energy Outlook, BP said the Ukraine war will slow global economic activity by 2035 by around 3 percent compared with last year’s forecast due to higher food and energy prices as well as reduced trade activity.
BP lowered its oil and gas demand forecast in 2035 by 5 percent and 6 percent, respectively, under its central forecast scenario that is based on governments’ current energy transition plans. The changes are focused mostly in Europe and Asia which rely heavily on energy imports, BP said.
Under its three scenarios, global energy demand peaks between the late 2020s and 2035, according to BP, whose Chief Executive Bernard Looney aims to rapidly grow the company’s renewables business and slash oil and gas output by 2030.
Put together, BP expects primary energy consumption in 2035 to be lower by 2 percent compared with last year’s outlook, with half of the decline due to gains in energy efficiency and half due to lower economic activity.
“The increased focus on energy security as a result of the Russia-Ukraine war has the potential to accelerate the energy transition as countries seek to increase access to domestically produced energy, much of which is likely to come from renewables and other non-fossil fuels,” BP Chief Economist Spencer Dale said in the report.
Oil demand is set to start declining rapidly after 2030 under BP’s three scenarios, but will continue to play a major role in the global energy system, with world demand reaching 70 to 80 million barrels per day by 2035, compared with today’s consumption of around 100 million bpd.
Carbon emissions in 2030, under BP’s central scenario, are 3.7 percent lower than in the previous outlook.
TotalEnergies says well drilling in Lebanon’s offshore Block 9 to begin in Q3
TotalEnergies is keen to start work on Lebanon’s offshore Block 9 “as soon as possible,” with assessments to begin early next month and well-drilling to launch in the third quarter of 2023, its CEO Patrick Pouyanne said on Sunday.
Pouyanne was speaking at a joint news conference in Beirut after signing a three-way consortium deal with QatarEnergy and Eni to explore oil and gas in two maritime blocks off the coast of Lebanon known as Blocks 4 and 9.
Following months of talks, QatarEnergy has taken a 30 percent stake in the consortium, leaving TotalEnergies and Eni with 35 percent each.
Lebanon hopes discoveries will help it reverse a crippling economic crisis that has cost the local currency more than 97 percent of its value, eroded the country’s foreign reserves and caused rolling blackouts across towns and cities.
Pouyanne said a vessel would arrive in Lebanese waters on Feb. 6 to carry out an environmental survey in Block 9, “and we plan to drill during the third quarter of the year.”
The CEO of Eni, Claudio Descalzi, said the exploration could offer a “big opportunity” for Lebanon as the world was facing a major lack of gas.
“From a geological point of view, I am positive” about a discovery in Lebanon’s Block 9, Descalzi told reporters.
“We have to hope and pray that it is a real and material one,” he said.
Pouyanne and Qatar’s energy minister Saad Al-Kaabi, also the CEO of QatarEnergy, said they were discussing possible coordination on renewable energy in Lebanon.
Saudi Arabia forges alliance with University of Chicago to drive economic growth and policy innovation
Updated 8 sec ago
ARAB NEWS
RIYADH: Saudi Arabia has collaborated with the University of Chicago to advance research and implement effective public policies, focusing on nurturing local talent and enhancing economic opportunities within the Kingdom.
The Ministry of Economy and Planning has signed a three-year research agreement with the university’s Division of Social Sciences to conduct economic research contributing to the development of social and economic policies.
The agreement, signed by Saudi Arabia’s Vice Minister of Economy and Planning Ammar Nagadi, encompasses the research and study of various policy areas, including macroeconomics, international organizations, social development, as well as labor market dynamics, according to the Saudi Press Agency.
The collaboration with the University of Chicago aligns with the ministry’s directives to formulate policies based on scientific and empirical evidence, establish partnerships with local and international entities, and promote growth and innovation in the private sector.
Saudi Arabia has been strengthening research and investment opportunities in the private sector as the Kingdom steadily diversifies its economy away from oil, in line with the goals outlined in Vision 2030.
In November 2023, MEPX, a composite index released by the Ministry of Economy and Planning, revealed that corporate stability has helped Saudi Arabia’s private sector maintain its continued expansion in the third quarter of this year.
The robust expansion of the private sector in the third quarter of 2023 signifies economic growth and contributes significantly to addressing employment needs in Saudi Arabia, added the ministry in the report.
Furthermore, an October report from Saudi Arabia’s National Labor Observatory revealed a 10.5 percent increase in the number of Saudis in the private sector during the second quarter, reaching 2.2 million. This surge is attributed to a resilient economic rebound that expanded the workforce.
This data reflects a positive trend in the employment sector, as the private sector continues to expand its workforce, creating opportunities for Saudi citizens.
Saudi Arabia, Turkiye agree to boost their food production sectors
Updated 11 min 46 sec ago
Arab News
RIYADH: A new agreement between Saudi Arabia and Turkiye will see a significant boost in agriculture, livestock, and water management production capabilities.
A memorandum of understanding was signed by the Turkish Minister of Agriculture and Forestry, Ibrahim Yumakli and the Kingdom’s Minister of Environment, Water, and Agriculture Abdulrahman bin Abdulmohsen Al-Fadhli, at the ministry’s headquarters in Riyadh on Dec. 3, according to the Saudi Press Agency.
The two nations, who aim to enhance their food production sectors by embracing innovative technologies, will collaborate to prepare the agricultural sector in both countries for climate change.
The initiative involves the introduction of advanced technologies in agriculture and crop production, the development of the livestock sector, and the protection of plants and animals.
Saudi Arabia’s PIF buys significant minority stake in Rocco Forte Hotels
Updated 04 December 2023
ARAB NEWS
RIYADH: Saudi Arabia’s Public Investment Fund has acquired a significant minority stake in UK-based Rocco Forte Hotels, marking a strategic move to enhance its presence in the hospitality sector.
PIF stated that the agreement aligns with the sovereign fund’s global investment plans in promising sectors to secure long-term returns. However, it did not disclose the exact percentage of shares acquired in Rocco Forte Hotels.
Turqi Al-Nowaiser, deputy governor and head of the International Investments Division at PIF, said: “Our investment in Rocco Forte Hotels reflects PIF’s confidence in both the commercial opportunity and the strength of the international hospitality and tourism industries that have shown remarkable resilience in recent years.”
He added: “As active long-term investors, PIF will continue to invest strategically in promising sectors to achieve sustainable returns globally.”
The fund also mentioned that the transaction is still pending regulatory approvals.
According to a press statement, the Forte family will maintain majority ownership and control of the group, while the Italian entity CDPE Investimenti has exited the business post-deal.
Rocco Forte, the executive chairman of Rocco Forte Hotels, expressed excitement about the hotel group’s partnership with PIF.
“They (PIF) share the same vision for the brand and the future strategy of the group, with the same ambition to take a long-term view. I look forward to working with PIF to expand the group and improve the high level of service we offer our customers,” said Forte.
“We thank CDPEI for having shared the past fruitful eight years during which we both successfully accomplished the mission we shared when we started the journey, having significantly enhanced the value of the company and increased the group’s presence in Italy and across Europe,” he added.
Founded in 1996 by Rocco Forte and Olga Polizzi, the Rocco Forte Group currently operates 14 hotels and resorts, along with 20 private villas.
PIF, considered one of the wealthiest sovereign wealth funds globally, is at the forefront of Saudi Arabia’s economic diversification efforts, in line with the objectives outlined in Vision 2030.
In November, PIF acquired a 10 percent stake in Heathrow Airport from the Spanish infrastructure giant Ferrovial.
In its October 2023 annual statement, PIF announced the establishment of 70 companies since its inception, with 25, such as Saudi Coffee Co. and Halal Products Development Co., founded in 2022.
In the same month, PIF also launched Tasaru, a company dedicated to developing local supply chain capabilities for the automotive and mobility industry in Saudi Arabia.
The fund has also made several investments in the future mobility sector, including the establishment of Ceer, Saudi Arabia’s first national electric vehicle brand, in collaboration with Foxconn. Additionally, PIF has invested in Lucid Motors, a US-based company.
ACWA Power CEO ‘confident’ of China deal in next few months
Updated 2 min 51 sec ago
Ranvir Nayar MANAL AL-BARAKATI
DUBAI: Energy company ACWA Power is getting closer to securing its first deal in China, the firm’s CEO Marco Arcelli told Arab News on the sidelines of the UN Climate Change Conference.
The Saudi-based firm has seen its ties with the Asian country grow in 2023, including signing seven cooperation agreements with various Chinese firms in October across multiple sectors, including solar energy, green hydrogen, and water desalination.
Speaking from the COP28 forum in Dubai, Arcelli set out how the expansion into the Chinese market is part of the company’s plan to increase the value of its asset book to $250 billion, as it is develops across Central and East Asia.
“Right now, the single biggest country is Uzbekistan for the new activity, and all of Central Asia we see coming up with a lot of potential. The next target for us is China. And I am confident that within a few months we will be able to announce the first deal in China,” Arcelli said.
Elaborating on the recently signed memorandums of agreement with Chinese firms, the CEO highlighted the firm has three main objectives when it comes to expanding into the Asian country.
The first is to keep working with the Chinese in regional and global projects, the second is to expand investments in the country itself, while the third is closer working on research and development.
Arcelli added: “We’re working a lot, particularly in the Shanghai area and with a lot of suppliers. To give you some idea of the activities we are working on. You know that here in the Gulf, temperatures are very high. The efficiency of the solar panels decreases.
“We are working with suppliers on how we can make the panels more suitable for installations to our region. It is going to benefit us, but it is also going to benefit all the industry in the end.”
He further outlined that ACWA Power is discussing ways for Chinese companies to “localize in Saudi Arabia” by demonstrating the “solid program” they have integrated in the Kingdom.
According to the CEO, the company is also in talks with other nations from Central Asia in hopes that they will develop the needed equipment locally, thus creating a strong ecosystem for growth in Saudi Arabia.
ACWA Power signed Memorandums of Understanding with two Chinese firms in Riyadh in September
Outlining the Kingdom’s potential and role within the Saudi renewable sphere, the CEO highlighted that the company will be responsible for delivering the Public Investment Fund program of 70 percent of the renewable energy that will be installed in the country.
‘‘We have a goal of tripling the size of the company to about $250 billion of assets under management, up from less than $80 billion when I joined at the beginning of the year,’’ said Arcelli.
The CEO flagged up the Red Sea Global project in Saudi Arabia as one of the key developments it is involved in, and said: “We just completed the first phase of the Red Sea Global, which is going to be one of the best and biggest tourist attractions in the world.
“We are providing the utilities there to these resorts and that one is 100 percent powered by green electricity. That means not only the power generation, but also the desalination and the wastewater that we are using there.
“That will go through a process where we are going to create mangrove wetlands so that basically that’s going to be part of the Saudi Green Initiative to plant the 1 billion trees by 2030.’’
Arcelli also underscored the various milestones and achievements registered by the company in 2023, saying: “I just joined in March this year. So, I have been here for eight months and the speed of growth and of activity in the company is just phenomenal. In the past eight months, we signed agreements for almost 10 gigawatts of power between Saudi Arabia, Uzbekistan and other countries.
“We have signed water agreements for 1.4 million cubic meters per day in Saudi Arabia and in the Emirates. We just broke ground this week on the second green hydrogen project that we participate in. All together we are growing in renewables and we’re growing in water by 20 percent this year.”
He also talked up the firm’s position as a “leading player” in the green ammonia industry, and its moves in transitioning facilities away from fossil fuels.
“For instance, recently in the Emirates, we converted a power plant that was built for using coal and we converted it to gas,” he said.
ACWA Power also converted a water desalination plant that was running on oil to reverse osmosis power by electricity. This has led to a saving of 22 million barrels of oil per year, informed Arcelli.
Together with the Saudi Electricity Co., ACWA Power has also recently bagged the deal for setting up a 3.6 gigawatts combined cycle plant.
Like many companies emerging from a legacy of fossil fuels, ACWA Power was “practically producing 100 percent electricity from fossil fuel until six or seven years ago,” said Arcelli.
Today, 43 percent of the company’s capacity, 53 GW, is coming from renewables, and the CEO expects that number to rise to between 70-80 percent.
As part of its mission to be an enabler of energy transition in countries that primarily only have access to coal or more polluting fuels, the company does not intend to entirely stop working with gas-fired combined cycles, Arcelli said.
Operating in the Global South, Africa, South East Asia and Central Asia, as it stands, does not allow for a complete, 100 percent transition of the needed energy in the region to renewables.
“We will do as many renewables as we can and complement that together with the goals and the plans of the local government to some combined cycles. We have a deadline for achieving net zero by 2050. Again, one of the reasons is that there is now a period where gas will still be required there – basically to fuel – but as we continue to add more renewables and more capacity over the long term, that is the goal,” he said.
ACWA Power is also looking at other emerging dimensions of renewable energy, like the large capacity battery storage. “We believe that as you introduce more renewable energy into a system, the more you need to think about how to stabilize the grid,” Arcelli said.
He added: “There are multiple ways. One is the system itself. So, if you have combined cycles, flexible generation, as we call it, then you can use that as a backup solution in other areas where you are blessed by a lot of sun.
“One of the greatest technologies is concentrated solar power. We do it here in the Emirates, so we do it in Morocco, we do it in South Africa, and we are exploring other countries.
Arcelli said having “the power of the sun 24 hours a day” would be of huge benefit as he talked up ACWA Power’s battery storage program, which he claimed is equivalent to the whole battery storage capacity installed in all of Europe in 2022.
For ACWA Power, the biggest such project is the RSG, which has grids that detach themselves from the main grid. Since it is solar, the project needed to have battery storage. Arcelli said that it is a massive 1.2 GWH for 400 megawatts of solar, so that one can have it all the time.
Arcelli was full of appreciation for the rapid transitions in energy provision being made by Saudi Arabia and the UAE, claiming the two countries are “leading the pack” in the transition.
“Both have, you know, very significant targets, Saudi Arabia to reach 50:50 renewables and combined cycles by 2030. That’s only seven years away. So that’s a massive programme. And the Emirates, they want to triple renewable energy capacity by 2030,’’ he said.
He pointed out that ACWA Power was a big player in both countries, adding: “That is how we bring our contribution, by bringing all the technologies and the financing from around the world, choosing the best and applying it so that we can offer the most competitive rates. Europe started really 20 years ago.
"The region here, of course, had abundant fossil resources. So there was maybe not as much urgency 20 years ago as there is today.”
Arcelli continued: “But I see basically all the countries here in the region taking that direction. And as I mentioned, it is just a matter of when, not if. Some started earlier with the visionary leaders that, you know, we were blessed with, and others are certainly coming along very positively.”
Looking at the state of the global energy businesses, Arcelli said that he felt the industry had taken to renewables as a whole for a variety of factors, but most notably due to its economic reasoning.
“I think that in power generation I don’t even talk anymore about renewables because that’s what everybody wants to do. The only time where we are not installing renewables is because you need to either grow a lot quickly and so you need also other types of generation or you want to complement your system,” he said.
Arcelli added: “For instance, you may have some solar, some wind, some nuclear, some gas fired generation, but let’s not debate that because renewables are not built by ideology today, they are built because they are the most efficient, they are the most secure, and that they are the most affordable type of energy that you can install.’’
Day 5 of COP28: Saudi Green Initiative Forum begins
The 3rd edition of the forum will discuss critical sustainability, primarily energy transition, protecting the seas, and unlocking climate finance
Updated 8 min 4 sec ago
Arab News
DUBAI: The Saudi Green Initiative Forum (SGI Forum) kicked off on Monday as COP28 continues to mobilize world leaders towards serious action against climate change.
Held under the slogan “From Ambition to Action”, the 3rd edition of the forum will discuss critical sustainability, primarily energy transition, protecting the seas, and unlocking climate finance to enable climate action at the UN climate Summit.
Yasir Al-Rumayyan, Governor of the Public Investment Fund
“The Public Investment Fund is the main engine of the Saudi economy.”
“Saudi Arabia last year was the fastest growing in GDP among the G20 member states. We had grown by 8.7 per cent.”
“By the first quarter of next year, we are designing a net zero transition plan. So, we will start to see how we are going to go from the current status quo to the net zero emission.”
“PIF moved from rank 73 to the seventh, among all the other sovereign wealth funds.”
10:09 GMT
Caption
Dr. Mohammed Al-Tamimi, Governor of the Communications, Space and Technology Commission and Acting CEO of Saudi Space
“Sixty percent of the critical variables of climate information come from space. There is a lot of discussion today on how to protect our planet, but also let us think about how to protect critical infrastructure where we get the data to protect our planet.”
“There is also a problem of space debris… these debris moving between around 20,000 and 30,000 kilometers per hour. If we have to protect our investments, we have to address the space debris issue.”
“In Saudi Arabia, we stand with all nations thinking about harnessing the power of space technology to combat the problem of space debris. Realizing the urgency of this global challenge, we have embarked on an ambitious journey to develop and deploy innovative space solutions that will encourage a better sustainable future.”
“We are planning a workshop in the first quarter of next year tackling specifically space debris because we believe this is a global problem and this needs global coordination to fix it.”
“People right now are talking about a new space era, a huge shift from a government-centric space sector to commercialization. Over the last 30 years, we have been tracking over $37 billion direct funding to the private sector, 60 percent of these coming in the last three to four years. There is a huge shift to the private sector to fund and participate in space activities.”
“We understand space economy is a growing economy, 80 percent of that economy would be coming from the downstream [segment] which is easy in capex so the appetite for the private sector and entrepreneurs will be higher. The third thing is the cost of launch: 10 years ago it cost $37,000 send a kilo into space, now it costs only $1,500 is expected that by 2040 it will be $10 only.”
“There should be innovative regulation, meaning there is cooperation between there regulator and the private sector as well as between the regulator and other agencies. Any ICT regulator should not work independently by itself, in isolation of the private sector or in isolation of another national regulator. There should be a concept of innovative regulation.”
08:47 GMT
Angela Wilkinson, CEO of the World Energy Council, tells Arab News about the impact of Saudi Arabia’s initiatives.
08:34 GMT
Ray Dalio, founder and mentor CIO of Bridgewater Associates, who also founded an ocean exploration organization called OceanX.
“We have discovered in the Red Sea a coral that is estimated to be a thousand years old, we discovered species, remnants of other civilizations. That kind of discovery in the Red Sea, the way it is being done, to work with scientists, it is exciting to see these discoveries. The Red Sea is such a treasured environment that has been underutilized and it will be handed in the most pristine way.”
“The ocean is 72 percent of the world’s surface and twice the size of all continents combined but it remains unexplored. It is the biggest natural resource that we have, it has the biggest effect on our lives, but it is totally ignored. As much as 120 percent times as much money is being spent for space exploration that to ocean exploration. It is much cost effective to go there, ocean exploration.”
“My mission is not only to show [ocean exploration], but to make it infectious. And it is becoming an infectious thing in Saudi Arabia, there will be amazing things that would be done in Saudi Arabia. And then it will be done globally. So my aspiration is to discover and think about the ocean.”
“I want to emphasize that [being custodians of the ocean] do not happen without great partnership. I would say could not getter partnership than in Saudi Arabia in the ways that we are doing it. I think you have to have an excellent leadership of a government to say: how do you make it pervasive?”
08:23 GMT
Dr. Lisa Levin, Distinguished Professor at the Scripps Institution of Oceanography
“Deep-sea is as diverse as ecosystems on land. Each one of this high species diversity. There is a lot of evolutionary novelty down there, that we may be able to benefit from in the form of medicines and pharmaceuticals.”
“In terms of the animal life, the ecology of the deep see, we probably have seen less than five percent after about 150 years or more of exploration. So, there is a lot of exploration left to do.”
“The UN High Seas Treaty to the Rescue of Marine Biodiversity could be a very powerful treaty if nations could be behind it and use it to its full capacity. It creates the opportunity to create vast protected areas. It creates marine resources as the common heritage of mankind, and gives benefit sharing to all nations of the world.”
“So much of the deep sea is pristine, and this treaty will help us keep it that way and prevent it from being a dumping ground or a resource extraction site.”
07:42 GMT
Mohammad Al Tayyar, Program Director, Oil Sustainability Program
“If you focus on the four R’s - reduce, reuse, recycle and remove - you can achieve a lot of your mitigation and abatement activities.”
07:36 GMT
Bandar Alkhorayef, Saudi Minister of Industry and Mineral Resources, reaffirms to Arab News the Kingdom’s commitment towards energy transition.
07:24 GMT
Nadhmi Al-Nasr, CEO of NEOM
“We are starting from zero. We have no legacy. We have nothing to undo. And that’s a blessing, but a big responsibility.”
“First, we want the nature reserve to govern how NEOM will be done. We then immediately decided to make 95% of this whole region untouched nature reserve, which left us only 5% of the whole area to build on to house 9 to 10 million people in it.”
“We need to build the city or this NEOM by having it all energized by renewable energy, which is the base of NEOM.”
“We have hundreds of nationalities in NEOM.
Basically, we have the world in NEOM and I see many of them here. They are scientists, they are engineers, they are here because they are passionate about it. It's not just a job, it's a responsibility.”
07:20 GMT
Princess Haifa bint Muhammad Al-Saud, Saudi Vice Minister of Tourism
“International arrivals grew from around 680 million international arrivals to 1.5 billion, and that number is only going to increase to 1.8 billion by 2030.”
“We are going to put a $92 billion investment in Expo to make real one of the most sustainable cities by 2030.”
“Those are the types of commitments that we need to start proactively doing, and it starts from a role as individuals, all the way to the rules of the communities, to the roles of government and the roles of private sector alike.”
“Today the world is suffering from over tourism, $1 trillion spent annually is the cost of over tourism. So definitely preserving heritage sites is critical.”
07:00 GMT
Khalid Al-Falih, Saudi Minister of Investment
“My key point about sustainability is economic sustainability, and that’s where I think investment comes in.”
“We have global policies, and we’re at COP. This is where global policies are being written and architected.”
“The future is about responsible climate action in the Kingdom of Saudi Arabia.”
“We’re building the world's largest and most ambitious and cleanest green hydrogen project in Neon with a partnership from our leading renewable company, ACWA Power.”
“The Ministry of Energy is keeping Aramco and its trajectory of being the world's lowest emitting company.”
“The Saudi government is a top three on every metric that allows industries and consumers to be as efficient and least emitting as possible.”
“We are under no illusion that that fossil fuels will be switched off, constraining it and allowing us to preserve our hydrocarbons for the future, I think is a gift for us.”
“The kingdom has great endowments. One of them is our hydrocarbon endowment. The next is our location solar wind renewables converging together. Being able to produce green hydrogen blue hydrogen at a fraction of what would it cost at high consumption rates. The third endowment is our young great people who are the most innovative, the most productive, the most loyal, the most patriotic people and the fourth endowment is our private sector.”
“As we move forward, we believe that scaling would be more economical. This is why we have already announced that we are planning to get to 44 megatons of CO2 by 2035, which is almost equivalent to the total capacity in existence today.”
6:53 GMT
Mohammed Alibrahim, Saudi Arabia’s Assistant Minister for Oil and Gas
On balancing out carbon management: “What dictates what solution takes place depends a lot on the circumstances because at the end of the day when you select a solution it has to be the most economical for this location. There is no one path for every one.”
“When you are planning your power sector, you need a baseload and sometimes renewable energy could not provide that baseload and we have to be realistic about it what we’re planning moving forward. We do not see any competition, we believe that all these solutions are necessary moving forward, but what dictates the mix would be different from on country to another.”
On carbon capture scaling: “We understand that different technologies are in different stages of their life right now, but we believe also in paving a level playing field in these technologies. We do not play favorites; we do not say one technology is better than the other. We understand what we need to solve for, and it reduces emissions regardless what technology works.”
6:45 GMT
Adel Aljubeir, Saudi Minister of State and Envoy for Climate
“I believe we can work in terms of carbon capture and sequestration. I believe we can do a lot in terms of how we manage our lives and how we live, how we design our cities to reduce commuting time and to reduce pollution.”
“I believe our approach has to be comprehensive, not just in specific areas, there is room for reducing waste.”
“There is room for increasing efficiencies there is room for planting trees. There is room for combating desertification, there is room for combating plastics, there is room for carbon capture and sequestration.”
“I would say that the approach that we have used in Saudi Arabia is a whole of government all of society approach we don't believe that you can segment different areas we have to work, so to speak on all cylinders.”
“I believe that there's a need to provide resources to countries that have a lack of resources, and also providing them with expertise.”
“I believe we have the financial resources, I believe we're developing the political will in order to put in place ambitious policies and ambitious pathways towards achieving the objectives that we all aspire towards.”
“We have launched more than 80 programs and committed almost $200 billion, 186 to be precise on programs this far. We will continue to see what else we can do.”
“I would say the key elements are open dialogue and trust. And if we have an open dialogue and we have trust, and we can have a rational conversation about how they solve the problems and how we tackle the challenges that we're facing. We can come up with credible pathways forward.”
“The key is to express different opinions and the key is to see how we can all combine our collective wisdom to move forward.”
6:00 GMT
Inger Andersen, Under-Secretary-General of the United Nations and Executive Director of the United Nations Environment Programme
- “I want to celebrate the fact that Saudi Arabia put it on the G7 agenda. Desertification and land degradation is an issue that is affecting millions of people and billions of hectares of land.”
- “It is a real issue and we have to also accept that we need land to have agriculture to have urbanization etc. So how are we going to ensure that our lands are as fertile as possible.”
“The Middle East green initiative that is also Saudi-led is something to celebrate. There are resources, obviously, from the GCF, the Green Climate Fund, etc. But these are small resources, the bigger resources will come from communities themselves.”
05:48 GMT
Dr. Khaled Alabulqader, CEO, National Center For Vegetation Cover Development And Combating Desertification, said Saudi Arabia is taking climate change “very importantly and seriously”.
“The Kingdom has taken big initiatives in the world stage and the local stage and on the regional stage.”
“We have done a very good job in the Kingdom in the last few years, where we reduced the [climate] impacts, especially in the coastal areas, vegetation cover and the rangelands. And now we have a policy to also manage the grazelands where we can convert to organized grazing practices with some incentives given to the local community and people.”
“We encourage the development of NGOs. NGOs are really increasing in numbers in the kingdom. For example, when we started the initiative for a plantation in the Kingdom, in the last two years, we have reached to a number 150,000 volunteers.”
“Land degradation is responsible for the 40 percent of global emissions.”
“We just finished the study and the roadmap for the Kingdom to take on the initiative of planting 10 billion trees from 2024 to 2100.”
05:34 GMT
Jukka Petteri Taalas, Secretary-general of the World Meteorological Organization, said this year would be the warmest year on record, and we have also broken records of main greenhouse gas concentrations of carbon dioxide and nitrous oxide.
Taalas added that sea level rise is affecting this part of the world. “We are seeing more weather extremes, more droughts. This part of the world is very sensitive, people are facing more risks in this part of the world.”
“We know that the biggest problem with climate mitigation is consumption of fossil fuels. That’s two thirds of the problem. Then about 20 percent of the problems related to release of methane, especially from tropical wetlands, from rice paddies and from cattle. And about 10 percent of the problem that we have having in climate is related to deforestation, especially deforestation of the tropical rain forests in Africa, and sub parts of Southern Asia.”
“And we should stop this deforestation and instead, plant more trees is a way to absorb carbon dioxide from the from the atmosphere.”
“Then there’s a second challenge that we are having. It’s the fact that we have started seeing growing amount of dust and sand storms also in your parts of the world and these tree plantation to be one positive act against this growing amount of sand and dust storms. And this as you all know, sand and dust storms are having negative impacts on human health.”
5:00 GMT
Saudi Minister of Energy Prince Abdulaziz bin Salman
During his opening speech, the Saudi Minister of Energy Prince Abdulaziz bin Salman said the Kingdom will work with international partners to develop tech-based initiatives to advance the implementation of effective climate action.
He said the Kingdom’s concrete action on implementing renewables are reflected by its ability to quadruple its capacity from 700 megawatts last year to two gigawatt with more than eight gigawatts of renewable under construction and around 13 gigawatts in various development stages.
“We are also planning to tender an additional 20 gigawatt by 2024 as part of our commitment to accelerate the development to renewable energy project.”
The Kingdom, the minister said, aims to become a key exporter of green hydrogen.
The NEOM green hydrogen project, he said, has successfully completed its initial phase securing investments of about $8.5 billion to produce 1.2 million tonnes per annum.
The forum will highlight Saudi Arabia’s projects and initiatives to promote sustainability and mitigate climate action under SGI, which was launched by Saudi Crown Prince Mohammed bin Salman in 2021.
More than 80 initiatives are being implemented to contribute to achieving the SGI’s goals of the Saudi Green Initiative.
SGI Forum is an annual platform convening policy makers, thought leaders and climate experts from around the world to share insights, and discuss the best solutions to reach a more sustainable regional and global future.
It comes this year as the UN climate summit continues with key pledges from world leaders to mobilize efforts to combat the rising threats.
The annual United Nations Conference of the Parties, known as COP28, in the UAE featured about 150 presidents, prime ministers, royals and other leaders who are presenting their plans to cut heat-trapping emissions and mostly seek unity with other nations to avert climate catastrophe that seemed to draw closer than ever in 2023.
