Saudi Arabia strengthens carbon markets with new deal for climate action

Saudi Arabia strengthens carbon markets with new deal for climate action
The Regional Voluntary Carbon Market Co. and the Clean Development Mechanism Designated National Authority signed an agreement to boost Saudi Arabia’s carbon markets. X/@MoEnergy_Saudi
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Updated 31 October 2024
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Saudi Arabia strengthens carbon markets with new deal for climate action

Saudi Arabia strengthens carbon markets with new deal for climate action
  • Agreement will play in ensuring the carbon markets established in the Kingdom are transparent, robust, and credible
  • Saudi Arabia has set a net-zero emissions goal for 2060, adopting a circular carbon economy approach

JEDDAH: A memorandum of understanding between two key entities is set to boost Saudi Arabia’s carbon markets and support the Kingdom’s climate objectives.

The signing of the deal between Regional Voluntary Carbon Market Co. and the Clean Development Mechanism Designated National Authority was witnessed on Oct. 30 by the Kingdom’s Energy Minister Prince Abdulaziz bin Salman, and Yasir Al-Rumayyan, governor of the country’s Public Investment Fund, on the sidelines of the eighth edition of the Future Investment Initiative in Riyadh.

The pact was inked by RVCMC Chair Rania Nashar and CDMDNA Director of Technical Affairs Maria Al-Jishi, acknowledging the essential role the agreement will play in ensuring the carbon markets established in the Kingdom are transparent, robust, and credible, according to the Saudi Press Agency.

Climate change poses a significant challenge for Saudi Arabia, the Middle East, and the global community. Reducing emissions is a top priority for the Kingdom, and voluntary carbon markets are essential for achieving climate targets.

Saudi Arabia has set a net-zero emissions goal for 2060, adopting a circular carbon economy approach that emphasizes reducing, reusing, recycling, and removing carbon.

As part of the Saudi Green Initiative, the Kingdom aims to cut carbon emissions by 278 million tons annually by 2030 and to source 50 percent of its energy from renewable sources.

There is also a strong push to involve the private sector in environmental sustainability projects, particularly in renewable energy, waste management, and eco-friendly construction.

High-integrity carbon credits can help finance climate action by funding projects that reduce and remove carbon emissions, helping accelerate the transition to low-carbon and more sustainable economies worldwide.

The Kingdom has embarked on various initiatives to reduce its carbon footprint and diversify its economy beyond oil.

Mitigative efforts include ambitious targets of 44 million tons of carbon dioxide captured annually by 2035 and 2 million tons of CO2 seized and utilized daily to produce glycol, urea, and green methanol, as well as clean fuels, according to the 14th IEA-IEF-OPEC Symposium on Energy Outlooks.

RVCMC, a partnership between PIF and the Saudi Tadawul Group Holding Co., was established in October 2022 during the sixth edition of the FII Initiative in the Saudi capital.

Some eight months later, the company announced the successful auction of over 2.2 million tons of carbon credits in the largest-ever voluntary carbon credit auction, held in Nairobi, Kenya in June 2023.

The auction offered high-quality CORSIA-eligible and verra-registered carbon credits, enabling buyers operating in various industries to play their part in the global transition.


Maldives, Bulgaria push for greater climate action, financing

Maldives, Bulgaria push for greater climate action, financing
Updated 12 November 2024
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Maldives, Bulgaria push for greater climate action, financing

Maldives, Bulgaria push for greater climate action, financing

RIYADH: Insufficient financing continues to be a significant barrier preventing many countries, especially underdeveloped nations, from meeting their climate goals, according to the President of the Maldives.

Speaking on the second day of COP29, held in Azerbaijan from Nov. 11-22, Mohamed Muizzu emphasized that small island developing states require trillions, not billions, of dollars in climate finance.

“It is the lack of finance that inhibits our ambitions, which is why this COP, the finance COP, we need to deliver the new climate finance goal. This must reflect the true scale of the climate crisis. The need is in trillions, not billions,” Muizzu said.

He added, “It must consider the special circumstances of small island developing states — it must include adaptation, mitigation, and loss and damage.”

Muizzu also reiterated the importance of the environment for his country, stating: “You have called for stronger climate action. Our call has not changed. Our cause has not strayed because, for us, the environment and the ocean are more than resources. They are our cultural identity.”

In a similar vein, Bulgarian President Rumen Radev addressed the global impact of climate-related disasters, emphasizing that no region is immune to the deadly and costly consequences of climate change.

“Bulgaria is committed not only to being part of regional and energy cooperation initiatives across Central and Eastern Europe, the Balkans, and the Black Sea region but also beyond, by strengthening the links between the European Union and non-EU countries who share our priorities on climate neutrality, just energy transition, energy security, and low-carbon technological innovation,” Radev said.

He further called for broader action, stating, “All parties should undertake greater efforts to integrate climate change adaptation and resilience into all policies and strategies.”


Closing Bell: Saudi main index slips to 12,048

Closing Bell: Saudi main index slips to 12,048
Updated 12 November 2024
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Closing Bell: Saudi main index slips to 12,048

Closing Bell: Saudi main index slips to 12,048

RIYADH: Saudi Arabia’s Tadawul All Share Index fell on Tuesday, losing 58.74 points to close at 12,047.67.

The total trading turnover of the benchmark index was SR5.75 billion ($1.53 billion), with 70 stocks advancing and 152 declining.

Saudi Arabia’s parallel market saw a drop, losing 50.59 points to close at 29,110.41. The MSCI Tadawul Index also declined, shedding 5.06 points to end at 1,516.14.

The best-performing stock on the main market was Al Jouf Cement Co., with a 4.75 percent increase to SR10.58. Other top gainers included Malath Cooperative Insurance Co. and Elm Co., with shares rising by 4.40 percent to SR15.66 and 3.87 percent to SR1,101.1, respectively.

The worst performer on the main index was Fawaz Abdulaziz Alhokair Co., whose share price dropped by 4.42 percent to SR12.12.

National Environmental Recycling Co., also known as Tadweer, announced it had signed a memorandum of understanding with Re Sustainability Middle East Co. to explore the potential for establishing smelters and recycling units in the Kingdom. According to a statement on Tadawul, the deal is valid for one year and carries no immediate financial impact.

The company’s share price declined by 0.45 percent to SR13.4. 

Purity for Information Technology Co. announced it has secured a contract valued at SR10.7 million from Saudi Comprehensive Technical and Security Control Co. to supply technology equipment. The company stated that the financial impact of the contract will be reflected in the first quarter of next year.

Its share price dropped by 0.73 percent to SR8.33.

Red Sea International Co. reported a narrowed net loss of SR2.18 million for the first nine months of this year, compared to a SR54.7 million loss in the same period in 2023. According to a statement on Tadawul, the improvement was driven by a 515.78 percent year-on-year increase in sales revenue. However, Red Sea International’s share price declined by 4.05 percent to SR71.

Lazurde Co. for Jewelry reported a 42.98 percent decline in net profit for the first nine months, totaling SR24.8 million, compared to the same period last year. The company attributed this drop to a 6.61 percent year-on-year decrease in operating profit over the nine-month period. Lazurde’s share price dropped by 2.05 percent to SR13.36.


UN climate chief urges aggressive action as emissions hit GDP

UN climate chief urges aggressive action as emissions hit GDP
Updated 12 November 2024
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UN climate chief urges aggressive action as emissions hit GDP

UN climate chief urges aggressive action as emissions hit GDP
  • UN official warned that worsening climate impacts will ‘put inflation on steroids’ unless every country takes bolder climate action
  • Simon Stiell called on governments to leave COP29 with a clear global climate finance plan

RIYADH: The global climate crisis is rapidly evolving into an economic threat, with the impact of emissions reducing the gross domestic product of several countries by up to 5 percent, a UN official said. 

Speaking at the high-level segment for heads of state and government at the COP29 in Baku, Simon Stiell, executive secretary of the UN Framework Convention on Climate Change, emphasized the urgent need for more aggressive climate actions to address economic challenges, including rising inflation. 

“We used to talk about climate action as being mostly about saving future generations. But there has been a seismic shift in the global climate crisis, as the climate crisis is fast becoming an economy killer,” said Stiell. 

He added, “In this political cycle, climate impacts are curving up to 5 percent off GDP in many countries. The climate crisis is a cost-of-living crisis, as climate disasters are driving up costs for households and businesses.” 

Stiell’s comments came shortly after a report by finance consultancy Oxera, which revealed that climate-related extreme weather events have cost the global economy more than $2 trillion over the past decade, with the US being the most affected. 

The UN official warned that worsening climate impacts will “put inflation on steroids” unless every country takes bolder climate action. 

Stiell urged the world to learn from the COVID-19 pandemic, highlighting the economic suffering caused by slow and ineffective collective action on supply chain issues. 

Describing climate finance as “global inflation insurance,” he warned that failing to address the economic toll of climate change would lead to disaster. 

“Letting this issue languish halfway down cabinet agendas is a recipe for disaster,” he said. 

However, Stiell remained optimistic, asserting that effective climate action could save economies and create new economic opportunities. He pointed to the growth of renewable energy as a potential driver of stronger financial states for nations. 

“This isn’t just about saving your economies and people,” he said. “Bolder climate action can drive economic opportunity. Cheap, clean energy can be the bedrock of your economies. It means more jobs, growth, less pollution choking cities, healthier citizens, and stronger businesses.” 

Stiell called on governments to leave COP29 with a clear global climate finance plan and urged international cooperation as the key to combating global warming and ensuring humanity’s survival. 

“We need your direct engagement on new national climate targets and plans — NDCs — so that all of you can benefit from the boom in clean energy and climate resilience,” said Stiell. 

He added: “These are not easy times, but despair is not a strategy, nor is it warranted. Our process is strong, and it will endure. After all, international cooperation is the only way humanity can survive global warming.” 


OPEC revises down global oil demand growth forecasts for 2024, 2025

OPEC revises down global oil demand growth forecasts for 2024, 2025
Updated 12 November 2024
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OPEC revises down global oil demand growth forecasts for 2024, 2025

OPEC revises down global oil demand growth forecasts for 2024, 2025
  • OPEC revised its 2024 global oil demand growth estimate to 1.82 million barrels per day, down from 1.93 million bpd forecast last month

LONDON: The Organization of the Petroleum Exporting Countries has again downgraded its global oil demand growth projections for both 2024 and 2025, marking the fourth consecutive reduction.

The revision, announced on Tuesday, underscores weaker demand expectations for key regions such as China, India, and other parts of the world.

The updated forecast highlights the ongoing challenges faced by OPEC+, the broader alliance that includes OPEC members and partners like Russia. Earlier this month, OPEC+ delayed plans to increase oil output starting in December, citing concerns over falling oil prices.

In its latest monthly report, OPEC revised its 2024 global oil demand growth estimate to 1.82 million barrels per day, down from 1.93 million bpd forecast last month. This marks the first revision to the outlook since it was initially set in July 2023.

China was the primary driver of the downward revision. OPEC reduced its forecast for Chinese oil demand growth to 450,000 bpd, down from 580,000 bpd, noting that diesel consumption in September dropped year on year for the seventh consecutive month. OPEC attributed this decline to a slowdown in construction and weak manufacturing activity, as well as the rising use of LNG-fueled trucks in China.

The weaker outlook weighed on oil prices, with Brent crude trading below $73 per barrel following the release of the report.

The demand outlook for 2024 remains uncertain, with significant differences among forecasters regarding the strength of global demand growth, particularly concerning China’s recovery and the pace at which the world transitions to cleaner fuels.

In addition to the 2024 revision, OPEC also lowered its forecast for global oil demand growth in 2025 to 1.54 million bpd, down from the previous estimate of 1.64 million bpd.


Jordan’s inflation rises 1.56% as key goods and services drive up costs

Jordan’s inflation rises 1.56% as key goods and services drive up costs
Updated 12 November 2024
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Jordan’s inflation rises 1.56% as key goods and services drive up costs

Jordan’s inflation rises 1.56% as key goods and services drive up costs
  • Higher prices of specific goods and services largely drove the rise
  • Jordan’s industrial production index recorded a cumulative increase of 0.48% through September

RIYADH: Jordan’s Consumer Price Index surged 1.56 percent from the beginning of the year through October to reach 110.58 points compared to 108.88 during the same period in 2023.

Higher prices of specific goods and services largely drove this rise. Personal items saw the largest increase, up 11.6 percent, followed by water and sanitation services, which rose by 7.34 percent, according to Petra news agency.

Other significant contributors included union dues, increasing by 5.86 percent, rental costs by 3.86 percent, and tobacco products by 3.53 percent.

For October alone, the consumer price index reached 110.61 points, marking a 0.76 percent increase from the same month of 2023

The monthly rise was influenced by a hike in prices of personal items by 21.38 percent, an increase of water and sanitation services by 7.34 percent, a rise in tobacco prices of 6.77 percent, and food seasonings and enhancers up 4.82 percent.

These increases were partially offset by declines in categories such as fruits and nuts, down by 6.92 percent; vegetables and pulses, down by 6.31 percent; and furniture and carpets, down by 3.04 percent, as well as fuel and lighting, down by 2.74 percent.

The CPI remained stable from September to October. Minor price drops were recognized in several categories, including meat and poultry, which fell by 1.81 percent; fruits and nuts, down 1.24 percent; and culture and entertainment, which declined by 0.95 percent. Transportation costs decreased by 0.72 percent, while fuel and lighting saw a reduction of 0.65 percent.

In parallel, Jordan’s industrial production index recorded a cumulative increase of 0.48 percent through September, reaching 87.63 points compared to 87.22 points during the same period last year.

This rise was attributed to a robust performance in the mining sector, which surged by 8.34 percent, and electricity production, which increased by 5.41 percent. However, manufacturing output saw a slight decrease of 0.28 percent.

For September alone, the IPI rose 3.41 percent year-on-year to reach 89.83 points, supported by growth in manufacturing, up 3.35 percent, mining, up 7.46 percent, and electricity production, up 0.71 percent.

However, the index dropped by 1.17 percent from August to September, primarily due to a 14.63 percent decrease in electricity output and a 4.47 percent decline in mining, while manufacturing remained stable with a minor 0.01 percent increase.

These economic indicators reflect ongoing inflationary pressures on Jordan’s consumer sector alongside moderate growth in industrial output, underscoring the mixed economic conditions influenced by domestic and global factors.