Saudi Arabia, GCC economies ‘world leading’ in green transition, says City of London’s lord mayor

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Updated 26 September 2023
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Saudi Arabia, GCC economies ‘world leading’ in green transition, says City of London’s lord mayor

Saudi Arabia, GCC economies ‘world leading’ in green transition, says City of London’s lord mayor
  • Nicholas Lyons said: ‘I take my hat off … particularly those hydrocarbon nations who have really grasped the scale of the challenge and are really driving forward now with solutions’
  • ‘As far as the City of London is concerned, we are absolutely committed to helping do everything that we can to fund that journey to net zero as efficiently as possible,’ he added

LONDON: The efforts Saudi Arabia and other Gulf countries are making to transition toward cleaner, greener economies are “world leading,” the lord mayor of the City of London said on Monday.

Nicholas Lyons, who visited the Kingdom and the UAE this year and is set to visit Qatar and Bahrain next week, also said there is “fantastic energy” in the Saudi Vision 2030 agenda for reforms and diversification of the nation’s economy.

“The scale of the transition is very substantial, of course, and the hydrocarbon economies have to manage very deftly this transition away from what has been a source of huge wealth,” he told Arab News.

“But they really are, genuinely, world-leading in the moves that they’re making into renewable technologies and clean energy, and they’re investing huge amounts of money in that.”

The levels of investment being made in this regard by Gulf Cooperation Council countries not only offer the prospect of significant financial returns, Lyons said, but will be critical in driving the growth of renewable technology companies and accelerating solutions to the climate crisis.

“I take my hat off to those nations, particularly those hydrocarbon nations who have really grasped the scale of the challenge and are really driving forward now with solutions,” he said.

With the UN Climate Change Conference, COP28, set to return to the Gulf in November this year, when Dubai will host, Lyons said he was positive about the role the City of London can play in assisting countries achieve sustainable development.

“As far as the City of London is concerned, we are absolutely committed to helping do everything that we can to fund that journey to net zero as efficiently as possible,” he said.

“That’s not just a comment about how we can help in the UK but how London, as a global financial center, plays its part as a leading underwriter of green bonds and green loans, and with its expertise in insurance, risk and project management, working with countries around the world on sustainable infrastructure programs.”

Lyons, who has been lord mayor since November 2022, a role he called a “privilege” and “a dream come true,” said discussions in some countries surrounding the revision of net-zero and carbon-neutrality targets was more a case of realistic thinking rather than defeatism.

“I think it’s certainly possible to interpret some of the things that we’re hearing now as slightly backward steps,” he said. “I’d like to think rather than it being a backward step in terms of commitment, it’s just more realism in terms of the ability to deliver.

“That, I think, is particularly true where countries, in wanting to be bold and make clear statements of their intent, have set unrealistic targets in terms of timing.

“Maybe I’m being optimistic but I choose to interpret most of the comments that we’ve heard as being in that category, rather than people scaling back.”

Lyons said that much like his discussions with GCC officials in February, talks during his upcoming trip to the region will highlight both the dynamic inward investment opportunities the UK can offer and the ways in which the City of London can offer expertise to countries in the Gulf and the British firms looking to operate in the region.

“There are two big areas that tend to dominate the conversation,” he said. “One is inward investment into the UK. We have a multi-year campaign to get overseas asset owners investing more money through the UK — not necessarily in the UK, but through the UK asset-management structure. There have been very significant investments in the UK by GCC countries, which is terrific, but that’s one of the areas that we’ll talk about.

“The other is around green and sustainable finance. The two come together when it comes to investment in sort of green tech-type companies and fintech (financial technology).

“The conversation is often about how London can help that process and talking about the different strengths of London and what we could do, particularly, I think, in Gulf areas, (where) the insurance market is relatively underdeveloped and also the long-term savings market is also quite small and needs to be built up. And so there are conversations about whether or not we can encourage British firms to set up in the Gulf countries.”

The City of London published its “Vision for Economic Growth — A Roadmap to Prosperity” report this month, the preparation of which involved collaboration with more than 300 stakeholders across the financial and professional services industries over a half-year period.

The report identified the challenges and shifts facing the financial sector, from the application of artificial intelligence to cryptocurrencies, big data, and ways in which they can be addressed, Lyons said.

“With all of the strengths that London has as a global financial center, there are nevertheless seismic challenges and changes taking place in the world of finance,” he added.

“You can’t hide under a duvet and pretend they’re not coming; they may be complicated issues but you have to have a strategy around them. You have to have your regulators start to develop a regime that can manage them.”

Lyons said he also hopes a future growth fund can tap into the “huge expertise” in the UK in sectors such as fintech, green tech and biotech, and offer additional home-grown funding to what is already available from North America and the Gulf.

“These companies, at the moment, are very heavily reliant on international money, particularly North American money (and) we love the fact that we have great investment from the Gulf in these industries,” he said.

“But if we can also provide lots of UK money to sit alongside all of this foreign direct investment, those companies don’t need ultimately to go and list in the United States, where we lose the intellectual property, we lose the people and we lose the value and all of the tax revenue that comes from it.”


COP28: Second day of leaders’ summit at UN climate talks

COP28: Second day of leaders’ summit at UN climate talks
Updated 3 min 36 sec ago
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COP28: Second day of leaders’ summit at UN climate talks

COP28: Second day of leaders’ summit at UN climate talks

World leaders continue on their second day of speechmaking at the high-level session of the United Nations climate conference in Dubai to deliver their views on what their nation is doing and what they think others should do.

Friday saw leaders focus on the scale and imminent threat of climate change and the drastic action needed to curtail global warming before it becomes an even worse catastrophe.

READ MORE: Click here for our coverage of COP28

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0651 GMT

Mokgweetsi Eric Masisi, President of Botswana.

“The government of Botswana has made a decision to increase renewable energy penetration from two percent to 30 percent by 2030,” according to Mokgweetsi Eric Masisi, President of Botswana.

“As a developing country, Botswana prioritizes adaptation as it reduces the vulnerability of communities to climate related hazards and in so doing protecting livelihoods and ecosystems as well as enabling them to be more resilient.”

0643 GMT

Chandrikapersad Santokhi, President of Suriname.

“As part of the eight Amazonian countries united in the Amazon corporation treaty organization, we are also committed to fight deforestation of the Amazon region. My country and people are forced to adapt to extreme dry and wet weather events which cause losses and damages,” Chandrikapersad Santokhi, President of Suriname, said in his national statement.

“At the same time, we must respond to the legitimate demands of our population for economic development and diversification as we do through a balanced approach consisting of developing the natural resources through environment-friendly strategy by sustainable forest management and active protection of biodiversity and also by continued transition to green energy and other green innovations and technologies.”

0633 GMT

Faustin-Archange Touadera, President of the Central African Republic.

“Africa which bears least responsibility in terms of emissions, responsible for just four percent of global emissions, but unfortunately, Africa is a primary victim of the direct impacts of climate change,” according to Faustin-Archange Touadera, President of the Central African Republic.

“Central African Republic has been classed among the five countries which are most threatened by the effects of climate change.”

“When it comes to determining who should pay for the climate bill, the answer is, bearing in mind the gap between developed countries which are the primary polluters and poor countries, it would be logical for the former to finance the mitigation process.”

0617 GMT

Salva Kiir Mayardit, President of South Sudan.

“For four years now, the country is suffering from floods, droughts, excessive heat high temperatures, and irregular rain patterns. These climate change related factors have negatively affected the livelihood of our people the people are internally displaced,” Salva Kiir Mayardit, President of South Sudan said in his national statement speech.

“That is causing subnational conflicts between the displaced and host communities. So, peace and security are clearly affected as a result of climate change.”

“We have come to this COP28 with the hope that we, the world leaders, will commit ourselves to the implementation of the provisions of the Paris Agreement.”

“Climate change financing to the less developed countries is very important so that these countries can implement their climate adaptation and mitigation projects,” he added.

0605 GMT

Nana Addo Dankwa Akufo-Addo, President of Ghana.

“We are all now aware that climate change has an enormous impact on the fundamentals required for our survival on earth. It imposes developmental constraints and burdens on are already stretched resources and we, in Ghana are witnessing this phenomenon for ourselves at first hand,” said Nana Addo Dankwa Akufo-Addo, President of Ghana.

“A few weeks ago parts of my country Ghana were confronted with the severe humanitarian crisis triggered by the spillage of water from our country’s largest hydroelectric dam due to unusually high rainfall patterns.”

“We encourage our international partners to support the V20 loss and damage fund, the global shield against climate risk, and ultimately the UNFCCC loss and damage fund to ensure the availability of robust social safety nets for the developing world during such climate crisis.”

0551 GMT

Obiang Nguema Mbasogo, President of Equatorial Guinea.

“Africa is one of the regions with the highest rates of carbon capture and oxygen release in the world; yet, paradoxically we are the region which draws the least benefits,” according to Obiang Nguema Mbasogo, President of Equatorial Guinea.

“In light of that it’s not enough, in our view, for developed countries to simply wring their hands and make empty promises. Rather, they need to fulfill their commitments and obligations under the Paris agreement that we achieved at COP21 and ensure the rollout and implementation of tangible concrete action to mitigate the adverse impact of climate change.”

“We issue an urgent call for renewed commitment at COP28 to provide Africa with adequate transparent and just financing going forward as well as ensuring the requisite transfer of technology.”

Mbasogo faulted developed nations for failing to deliver on their pledges to meet their commitments on financing for climate action and meet their own targets to curb their industries’ emissions.

“Africa is one of the regions in the world that sequesters the most carbon and emits oxygen,” he said.

0544 GMT

Jose Ramos Horta, President of Timor-Leste.

“I urge the WHO to declare a public health emergency of international concern, the highest level of emergency that can be declared by WHO,” Jose Ramos Horta, President of Timor-Leste, said in his speech.

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The Israel-Hamas conflict also loomed large in the proceedings with several leaders voicing sympathy for the Palestinians in Gaza as the week-long ceasefire ended, and vigorous efforts to extend the truce collapsed.

Israel bombarded eastern areas of Khan Younis in southern Gaza right after the truce ended.

Jordan’s King Abdullah II speaks during the High-Level Segment for Heads of State and Government session at the United Nations climate summit in Dubai on Dec. 1, 2023. (AFP)

“This year’s conference of the parties must recognize even more than ever that we cannot talk about climate change in isolation from the humanitarian tragedies unfolding around us,” King Abdullah II of Jordan said in his speech.

“As we speak, the Palestinian people are facing an immediate threat to their lives and wellbeing. In Gaza over 1.7 million Palestinians have been displaced from their homes. Tens of thousands have been injured or killed in a region already on the front line of the climate change.”

 

 

The high-level session was also a day of financial commitments, with host country UAE announcing the establishment of ALTÉRRA, the largest private climate vehicle, and a $30 billion commitment to the vehicle with the aim of mobilizing $250 billion of private-sector investment by 2030.


Cooperation with Saudi Arabia central to Japan’s green ambitions

Cooperation with Saudi Arabia central to Japan’s green ambitions
Updated 02 December 2023
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Cooperation with Saudi Arabia central to Japan’s green ambitions

Cooperation with Saudi Arabia central to Japan’s green ambitions
  • ‘We are very dependent on other countries,’ Foreign Ministry press secretary says
  • Kobayashi-Terada Maki speaking as COP28 opens in Dubai

DUBAI: Japan must maintain close partnerships with countries like Saudi Arabia and the UAE if it is to achieve its goal to be a carbon-neutral economy by 2050, its Foreign Ministry press secretary said.

Kobayashi-Terada Maki made the comments in an interview with Arab News Japan as COP28 opened in Dubai.

“We are very dependent on other countries in terms of energy, and even though we are going to increase energy efficiency, we certainly need means of energy production,” she said.

Japanese companies and entities would be signing cooperation deals throughout the climate summit in the UAE, she said.

Japan is one of the only G7 countries that is close to achieving its environmental goals. Kobayashi-Terada said the country was on track to reach its target of reducing greenhouse gas emissions by 46 percent by 2030, compared with 2013 levels, and was working toward its goal of achieving net zero by 2050.

“We are on the right trajectory for really achieving our objectives right now. So that’s what we are very much proud of and we are very confident.”

The Japanese government has put in place a green transformation program, under which it aims raise 150 trillion yen ($1.02 trillion) in private-public investment to help achieve its goals.

“We are also using carbon pricing to subsidize companies that are heavy emitters to support energy efficiency,” Kobayashi-Terada said.

“By 2028, we will charge according to the amount of CO2 emissions for companies who are importing fossil fuels. By 2033, we are also pricing emissions so that the heavy emitters will pay for insurance. We will gradually increase this price so that companies can have incentives to reduce emissions.”

Later this month, Japan’s Ministry of Economy, Trade and Industry will host the Asia Zero Emission Community, which aims to encourage greater cooperation between Asian countries on reducing emissions.

“We will work together with Asian countries to utilize cutting-edge technology and also provide assistance to develop their capacity,” Kobayashi-Terada said.

Speaking at COP28, Japan’s Prime Minister Kishida Fumio said his government would increase its lending to the World Bank and the African Development Bank.

“We are going to be the first contributors and we will contribute $10 million,” the press secretary said.

* This article originally appeared on Arab News Japan, click here to read it.


New Lord Mayor of London hails maturity of Gulf economies

New Lord Mayor of London hails maturity of Gulf economies
Updated 02 December 2023
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New Lord Mayor of London hails maturity of Gulf economies

New Lord Mayor of London hails maturity of Gulf economies
  • Michael Mainelli, heading to COP28 in UAE, says appointment of new UK foreign secretary will ‘help deepen connections with Saudi Arabia’
  • Mainelli tells Arab News he is ‘extremely impressed at the commitment to net zero’ in both Gulf states

LONDON: Maturation of Gulf states’ economies presents further opportunities to deepen the relationship between the region and the UK, the new Lord Mayor of the City of London told Arab News before departing for COP28 in the UAE.

Just a few weeks into the role and Michael Mainelli was on hand, like his predecessor, to witness yet another British Cabinet reshuffle.

But with the return to frontline politics of former Prime Minister David Cameron, Mainelli is optimistic that this will further strengthen ties with Saudi Arabia, one of several Gulf states to have announced participation in a £30 billion ($37.9 billion) investment pledge into the UK.

“When it comes to that investment it’s enormously welcome, but what I think is great is it shows how Saudi and other Gulf states have really matured their economies,” Mainelli said.

“They’ve gotten a better understanding of what they want to achieve with their sovereign wealth funds beyond just investments and returns, and that includes knowledge transfer. That’s really exciting as it offers two-way transference between us and them,” he added.

“With Cameron’s appointment (as foreign secretary), you get undoubted foreign policy expertise, including in the Gulf, which I think will prove a good move and help deepen connections with Saudi Arabia.”

Pushing the idea of London as a “hub of connectivity” appears central in Mainelli’s year-long tenure, which he said he is serving under the theme “Connect to Prosper.”

Asked where the Gulf figures in this, he replied: “The Lord Mayor typically spends 100 days traveling each year. Of this, three weeks will be in North America, three in Asia, after which a smattering of other countries.

“And then, interestingly, the Lord Mayor will typically spend two weeks of travel around the Gulf each year. This shows you just how important it is as a destination, being right up there with Asia and North America.”

COP28 in Dubai has been designed with a strict focus on carbon, which plays into Mainelli’s “personal ambition.”

While he would be “going in with an open mind,” he said he would also use the event to revive interest in the notion of voluntary carbon markets, which first emerged during COP3 in Kyoto in 1997.

“I believe there’s a lot more work to be done when it comes to carbon markets … but we do need to get these to work,” he added.

“The initial idea was to have emission trading permits and businesses paid to remove carbon from the atmosphere — typically this would involve planting trees or seagrass — with the idea being we reduce our environmental impact by taking it out of the atmosphere.

“But it became subject to a lot of issues, ranging from the difficulty of measuring to ensuring the carbon was sequestered properly, and frankly also issues of fraud and corruption.”

Despite the initial difficulties, Mainelli remains convinced that it is a feasible and practical solution to reducing carbon levels in the atmosphere.

“It’s just the market hasn’t been fully formed and the basis upon which prices are set not properly calculated,” he said.

Of particular concern is what he described as the “final bit,” adding: “Let’s say I pay you to for a ton of carbon offset a year over a 25-year period, which you agree to facilitate through the planting of a forest.

“Now let’s say having planted that forest, a hurricane hits and uproots the trees, or there’s an avalanche, perhaps there’s a parasite, and the trees are destroyed, maybe the soil doesn’t allow them to grow, or maybe at the end of the 25 years you simply chop the forest down.

“Were any of these to happen, then nothing really has been achieved. All that has happened is you’ve deferred 25 years of emissions.”

For Mainelli, the solution to the issue and restitution of carbon markets as a tool in the route to net zero resides in the “appropriate use of insurance,” which he said would put a financial impetus behind the idea and “drive clearer, harder standards.”

Of particular pertinence, he noted, would be the fact that insurers would not insure carbon capture sites without having conducted “sufficient due diligence.”

Insurers “would crawl all over whoever was planning to set up one of these carbon capture sites, and they’d want to know what trees were being used, where seeds were sourced,” he said.

“They’d survey the ground, they’d ask why it was located at the base of a mountain. They’d do all this, and not only would they insure the site, they’d be building knowledge.”

This, said Mainelli, would be pivotal as that increased understanding would serve to improve the means and methods of carbon capture deployed in these carbon markets, leading to standardization.

It is “fairly evident” that the Gulf is determined to find workable solutions to address the climate crisis, he added.

“I spent a week earlier this year in Abu Dhabi, and also spent a week last year in Saudi, really trying to understand the situation on the ground there, and I was extremely impressed at the commitment to net zero in both nations and in other areas,” he said.

Pointing to the 25 substantial hydrogen projects in place in the UAE and the 40 Saudi Arabia has in the pipeline, Mainelli said there is an opening for closer ties with the City of London.

While development of hydrogen production would always be of interest, he said there is also reason to considering the creation of a sufficient transport mechanism for getting this hydrogen out into the world. This, he added, offers “great potential for collaboration.”


Japan’s Saudi crude oil imports slightly up for October

Japan’s Saudi crude oil imports slightly up for October
Updated 01 December 2023
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Japan’s Saudi crude oil imports slightly up for October

Japan’s Saudi crude oil imports slightly up for October
  • The amount was slightly up on September figures of around 29 million barrels
  • Tokyo’s ban on importing oil from Iran and Russia continued in October

TOKYO: Japan’s imports of Saudi crude oil for October reached 30.37 million barrels (42.4 percent of its total), according to Japanese government data.
The amount was slightly up on September figures of around 29 million barrels (37.1 percent).
During October, the Japanese Ministry of Economy, Trade, and Industry’s Agency for Natural Resources and Energy said approximately 92 percent (65.95 million barrels) of the country’s total oil imports came from Saudi Arabia, the UAE, Kuwait, Qatar, and Bahrain.
Tokyo’s ban on importing oil from Iran and Russia continued in October with the remainder of its requirement coming from the US (3.5 percent), Central and South America (2.2 percent), Southeast Asia (1.3 percent), Oceania (1 percent), and Indonesia (0.2 percent).
The figures represent the quantities of oil that arrived at refineries, tanks, and warehouses in Japanese ports during September. Japan uses oil to generate around one-third of its energy needs.


Japan on track to meet emissions targets, Kishida tells COP28

Japan on track to meet emissions targets, Kishida tells COP28
Updated 01 December 2023
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Japan on track to meet emissions targets, Kishida tells COP28

Japan on track to meet emissions targets, Kishida tells COP28
  • But world must do more to achieve climate change goals
  • ‘Each country will aim to achieve net zero according to its circumstances,’ PM says

DUBAI: Japanese Prime Minister Kishida Fumio said more action was needed if the world was to achieve its climate change goal of keeping temperatures within 1.5 degrees Celsius of pre-industrial levels.
Speaking at the COP28 climate summit in the UAE, Kishida said Japan was on track to reach its target of reducing greenhouse gas emissions by 46 percent by 2030, compared with 2013 levels, and would continue to work toward its goal of net zero by 2050.
The country had already reduced its greenhouse gases by about 20 percent, he said.
As confirmed at the G7 Hiroshima Summit for economic growth and energy, and based on the GX (green transformation) Promotion Act, Japan has adopted a growth-oriented carbon policy.
Kishida said that Japan would next year become the first country in the world to adopt internationally certified transition bonds. At the same time, it would accelerate efforts to realize its green transformation and contribute to global decarbonization.
Under the framework of the Asian Zero Emission Community, Japan was committed to making renewable energy its main power source, he said.
Japan is currently the world’s third-largest producer of solar power and continues to diversify its clean energy supply chain.
“Each country will aim to achieve net zero according to its circumstances,” Kishida said.
“Coal-fired power plants that have not taken measures to reduce emissions should be addressed along the way. Japan has developed reduction measures for domestic coal without emission.”
He said Japan would end the construction of thermal power plants and was committed to providing $70 billion of public and private sector funding.
The country would also increase lending to the World Bank and Asian Development Bank to the tune of $9 billion and additional contributions would be made to the African Development Bank, he said.
Separately, Kishida and Israeli President Isaac Herzog took part in a summit on the sidelines of COP28.
Kishida said he welcomed the agreement with Hamas to release hostages and allow more humanitarian aid into the Gaza Strip, and asked for Israel’s cooperation to help make that happen.
He also stressed the importance of acting in accordance with international law and UN Security Council resolutions, and said Japan supported the two-state solution to allow Israel and Palestine to peacefully coexist.
Hertzog expressed his appreciation for Japan’s condemnation of terrorism and explained Israel’s position regarding the Gaza Strip, including its military actions there.