Energy-rich countries should lead transition journey, says IAEE president

Exclusive Glachant noted that the Middle East and North Africa region is leading the energy sector in the world and that the Saudi capital Riyadh is one of the most prominent global destinations for business and finance. AN photo
Glachant noted that the Middle East and North Africa region is leading the energy sector in the world and that the Saudi capital Riyadh is one of the most prominent global destinations for business and finance. AN photo
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Updated 05 February 2023

Energy-rich countries should lead transition journey, says IAEE president

Energy-rich countries should lead transition journey, says IAEE president

RIYADH: Stressing the need for cooperation in the journey toward energy transition, the president of the International Association of Energy Economics said the shift should be led by energy-rich countries.

“Energy tech is coming to strengthen energy transition. Oil and gas-rich countries are now building their own way for the energy transition. The energy transition is not coming from western countries or India or China, and it is being led by energy-rich countries, but we have to learn, what time, what speed, etc,” Jean-Michael Glachant said. He also made it clear that financing is the key to achieving these goals.

In an exclusive interview with Arab News, Glachant said it will take another 30-50 years to achieve a transition to green energy.

“We are not close. But we are really starting. For about 15 years, we discussed; should we start, and when should we start. And now we are all understanding, yes, we have to do it. It will take 30 to 50 years,” he said.

“As long as we stay together, we are able to contain the damage. We have to find a way to compensate for damages because some countries will suffer more, while other countries less.”

The IAEE official said his organization is not just grateful but also lucky to host its 44th conference in Saudi Arabia, as the country is one of the key players in accelerating the global energy transition.

Glachant said that in line with its Vision 2030 blueprint, the Kingdom is charting its national sustainability path and setting an example for the rest of the world.

“There are many many advantages for IAEE to have Saudi Arabia as the host country. We are an association for energy economics. Saudi Arabia is building its own national sustainability path with its 2030 agenda. It is not only a pleasure, but it is an honor to enter the Kingdom and to discuss and interact with open-minded people of the region,” said the IAEE president.

“Saudi Arabia is leading a voice of the developing world in energy affairs. And we, at IAEE, want to discover what we can learn from Saudi Arabia,” he added.

It should be noted that the 44th IAEE conference is taking place in Riyadh from Feb. 4-9, and this is for the first time this event is being hosted in the Middle East.

“In this program, you would see that no big region in the world has been left behind. Really, the Saudis have done their best to have all the relevant people and all the relevant issues being put together,” he said.

According to Glachant, Saudi Arabia has several ideas about sustainable energy transition to share with the world and the IAEE event will serve as the perfect platform to showcase and discuss those ideas.

“To learn something is the core of the IAEE conference. When we do not learn something, the event is a failure. This is the first event in Saudi Arabia. Saudi Arabia is becoming independent in the way it is seeing the future and becoming rich to finance the future. If we cannot learn from such a place, I think we are sick,” he noted.

Glachant noted that the Middle East and North Africa region is leading the energy sector in the world and that the Saudi capital Riyadh is one of the most prominent global destinations for business and finance.

“Saudi Arabia is the world’s No. 1 country in terms of growth these days; not just growth in the oil sector, but also in the non-oil sector. So, Saudi Arabia is doing the unexpected by exploring new paths,” added Glachant.

He also lauded the efforts of the King Abdullah Petroleum Studies and Research Center in Saudi Arabia in carrying out research and framing energy policies to support a sustainable transition to green energy.

According to Glachant, the IAEE conference in Riyadh will help exchange ideas with big names in the region, and added that MENA is the “hotspot of energy which is also building its own energy economy.”

Glachant pointed out that there are several pillars of the energy transition, which include technology and innovation, direct and indirect investments, etc.

“It (energy transition) is a kind of car race. When you see your neighbor driving faster, sometimes, you try to do better than your neighbor,” he added.

Glachant was of the view that more progress was needed in the maritime and aviation sectors to meet sustainable targets.

“It is about technology innovation. We have to find ways of having that (aviation and maritime sectors) sustainable in a different way. Some planes run on electricity for small distances. But for long distances, what do we do? For maritime, what do we do,” Glachant questioned.


Global investment in clean energy to reach over $1.7tn in 2023: IEA

Global investment in clean energy to reach over $1.7tn in 2023: IEA
Updated 13 sec ago

Global investment in clean energy to reach over $1.7tn in 2023: IEA

Global investment in clean energy to reach over $1.7tn in 2023: IEA

RIYADH: As efforts to mitigate the effects of climate change gather pace around the world, investment in clean energy is also witnessing a surge and is expected to reach more than $1.7 trillion in 2023, according to the International Energy Agency.

In its latest report, IEA said the global energy sector is likely to record investment worth around $2.8 trillion this year of which 60.7 percent will go toward clean technologies.

As security and affordability issues brought on by the global energy crisis gain strength, spending on clean energy technologies will outpace spending on fossil fuels, the report predicted.

Green energy includes renewables, electric vehicles, nuclear power, low-emissions fuels, efficiency improvements, and heat pumps.

According to the report, the leftover global energy investments — slightly over $1 trillion — will go toward coal, gas, and oil.

“Clean energy is moving fast — faster than many people realize. This is clear in the investment trends, where clean technologies are pulling away from fossil fuels,” said IEA Executive Director Fatih Birol.

He added: “For every dollar invested in fossil fuels, about $1.7 are now going into clean energy. Five years ago, this ratio was one-to-one.”

The report also predicted that in 2023, spending on solar power is due to hit more than $1 billion a day or $382 billion for the year, while investment in oil production will stand at $371 billion.

From 2021 to 2023, annual investments in clean energy are projected to rise by 24 percent, driven by renewables and electric cars, compared to a 15 percent increase in investments in fossil fuels during the same time frame.

The report noted that over 90 percent of this increase emanates from developed nations and China. This poses a severe threat of creating new energy divides if renewable energy transitions do not accelerate elsewhere.

The IEA attributed the stimulated investments in clean energy in recent years to rapid economic expansion and erratic fossil fuel prices that fueled worries about energy security, particularly in the wake of the Ukraine crisis.

Other factors impacting the jump in investments in clean energy include significant policy support through initiatives in Europe, Japan, China, and other regions as well as the US Inflation Reduction Act.   


Saudi Fund for Development inks loan deals worth $16m with Saint Vincent and the Grenadines

Saudi Fund for Development inks loan deals worth $16m with Saint Vincent and the Grenadines
Updated 36 min 54 sec ago

Saudi Fund for Development inks loan deals worth $16m with Saint Vincent and the Grenadines

Saudi Fund for Development inks loan deals worth $16m with Saint Vincent and the Grenadines

RIYADH: A new primary care center and a cultural facility are set to be established in the Caribbean island nation of Saint Vincent and the Grenadines thanks to two development loan agreements worth $16 million. 

Signed by the Saudi Fund for Development, the two new agreements are part of the Kingdom’s framework to support the advancement in developing countries and small island developing states worldwide.

The first agreement will oversee the construction of a primary care center in South Rivers for $6 million, the Saudi Press Agency reported. 

The primary care center aims to improve the quality and resilience of the healthcare sector in the island nation while ensuring that locals have access to the necessary health services. 

It will also help in reducing chronic diseases as well as reducing mortality rates in the region.

The project is expected to create direct and indirect job opportunities and train medical staff. 

Meanwhile, the second agreement worth $10 million was allocated to construct a cultural center and a market for craft and agricultural products in Belle Vue.

The project will promote the country’s craft, handicraft, cultural and creative industries. 

It will also significantly promote tourism, social and cultural growth, and public health.

Together, the two projects will contribute to achieving the UN Sustainable Development Goals, specifically good health, well-being, decent work and economic growth.

“We look forward, through the signing of these two agreements, to opening horizons for development cooperation with the Kingdom of Saudi Arabia and strengthening close relations between the two countries,” Prime Minister of Saint Vincent and the Grenadines Ralph Gonsalves said.

SDF Chairman Ahmed Aqeel Al-Khateeb and Camillo Gonsalves, the minister of finance, economic planning and information technology of the island nation, signed the agreements.

Founded in 1974, the SFD has implemented over 700 projects and development programs in 85 countries worldwide. 


Nama Ventures and RAZ Group fund UAE-based logistics startup Cargoz

Nama Ventures and RAZ Group fund UAE-based logistics startup Cargoz
Updated 56 min 11 sec ago

Nama Ventures and RAZ Group fund UAE-based logistics startup Cargoz

Nama Ventures and RAZ Group fund UAE-based logistics startup Cargoz

CAIRO: Saudi venture capital firms are bolstering the regional startup funding landscape, with Nama Ventures and RAZ Group leading the investment round to support the expansion of the UAE-based logistics startup Cargoz in the Kingdom. 

Cargoz, often called the Airbnb for commercial warehousing, has secured an undisclosed amount in bridge funding from Nama Ventures, RAZ Group and a select few angel investors from the UAE and the Kingdom who are players in the logistics industry. 

The company, founded in 2022 by Premlal Pullisserry and Lijo Antony, offers a platform that connects small and medium enterprises with warehouse companies for short-term contracts. 

According to the press release, the company plans to utilize the funds to spur growth in the UAE and prepare for a soft launch in Riyadh by the third quarter of this year. 

Cargoz has reported significant growth over the last eight to nine months, indicating that it addresses a substantial market issue. 

“We underestimated the pain of finding on-demand storage for SMEs and how broken and stressful that experience was,” Cargoz stated in the press release. 

Nama Ventures, known for its 29 investments, including notable startups like Muqbis, Punt Partners and Faceki, expressed great enthusiasm about backing Cargoz. 

“Nothing makes us more excited at Nama Ventures than seeing founders as complementary as Premlal and Lijo. Premlal breaths logistics; his depth of the space and his understanding of the pains in the space are unparalleled. Lijo, on the other hand, is a coder’s coder; he is very well versed in tech space and knows how to build tech products,” said Mohammed Alzubi, founder and managing partner of Nama Ventures. 

In August 2022, Nama Ventures also led Cargoz’s pre-seed funding round with an undisclosed amount used to foster growth in the UAE. 


China’s 1st homemade passenger plane completes maiden commercial flight

China’s 1st homemade passenger plane completes maiden commercial flight
Updated 28 May 2023

China’s 1st homemade passenger plane completes maiden commercial flight

China’s 1st homemade passenger plane completes maiden commercial flight

BEIJING: China’s first domestically made passenger jet flew its maiden commercial flight on Sunday as China looks to compete with industry giants such as Boeing and Airbus in the global aircraft market.

The C919 plane, built by the Commercial Aviation Corporation of China, carried about 130 passengers on the flight, according to the state-owned newspaper China Daily. The jet took off Sunday morning from Shanghai Hongqiao Airport and landed in Beijing less than two hours later.

The flight was operated by state-owned China Eastern Airlines, and the side of the plane was emblazoned with the words: “The World’s First C919.”

The inaugural flight comes as COMAC looks to break into the single-aisle jet market in a direct challenge to Airbus and Boeing. Airbus’s A320 and Boeing’s B737 jets are the most popular aircraft for domestic and regional flights.

While COMAC designed many of the C919’s parts, some of its key components, including its engine, are still sourced from the West.

According to state media reports, the company plans to build 150 C919 planes yearly for the next five years.

The C919, which has been in development for 16 years, has a maximum range of about 3,500 miles and is designed to carry between 158 and 168 passengers.

Over 1,200 C919 jetliners have been ordered, COMAC says, with China Eastern Airlines under contract to buy five of them.


Biden, McCarthy reach tentative deal to raise debt ceiling

Biden, McCarthy reach tentative deal to raise debt ceiling
Updated 28 May 2023

Biden, McCarthy reach tentative deal to raise debt ceiling

Biden, McCarthy reach tentative deal to raise debt ceiling

WASHINGTON: President Joe Biden and House Speaker Kevin McCarthy reached an “agreement in principle” to raise the nation’s legal debt ceiling late Saturday as they raced to strike a deal to limit federal spending and avert a potentially disastrous US default.

Support from both parties will be needed to win congressional approval next week before a June 5 deadline.

The Democratic president and Republican speaker reached the agreement after the two spoke earlier Saturday evening by phone, said McCarthy.

“The agreement represents a compromise, which means not everyone gets what they want,” Biden said in a statement late Saturday night. “That’s the responsibility of governing,” he said.

Central to the package is a two-year budget deal that would hold spending flat for 2024 and impose limits for 2025 in exchange for raising the debt limit for two years, pushing the volatile political issue past the next presidential election.

The agreement would limit food stamp eligibility for able-bodied adults up to age 54, but Biden was able to secure waivers for veterans and the homeless.

The two sides had also reached for an ambitious overhaul of federal permitting to ease the development of energy projects and transmission lines. Instead, the agreement puts in place changes in the National Environmental Policy Act that will designate “a single lead agency” to develop economic reviews in hopes of streamlining the process.

The deal came together after Treasury Secretary Janet Yellen told Congress that the United States could default on its debt obligations by June 5 — four days later than previously estimated — if lawmakers did not act in time to raise the federal debt ceiling.

Both sides have suggested one of the main holdups was the Republican effort to expand work requirements for recipients of food stamps and other federal aid programs, a longtime goal that Democrats have strenuously opposed.

Biden has said the work requirements for Medicaid would be a nonstarter. He seemed potentially open to negotiating minor changes on food stamps, now known as the Supplemental Nutrition Assistance Program despite objections from rank-and-file Democrats.

Americans and the world were uneasily watching the negotiating brinkmanship that could throw the US economy into chaos and sap world confidence in the nation’s leadership.

Anxious retirees and others were already making contingency plans for missed checks, with the next Social Security payments due next week.

Yellen said failure to act by the new date would “cause severe hardship to American families, harm our global leadership position and raise questions about our ability to defend our national security interests.”

The president, spending part of the weekend at Camp David, continued to talk with his negotiating team multiple times a day, signing off on offers and counteroffers.