UN climate chief urges aggressive action as emissions hit GDP

UN climate chief urges aggressive action as emissions hit GDP
Simon Stiell, UN Climate Change executive secretary speaks at the World Leaders Climate Action Summit at COP29 Baku. UN Climate Change
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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.” 


Islamic Trade Finance Corp. allocates $566m to back Uzbekistan’s local banks

Islamic Trade Finance Corp. allocates $566m to back Uzbekistan’s local banks
Updated 34 sec ago
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Islamic Trade Finance Corp. allocates $566m to back Uzbekistan’s local banks

Islamic Trade Finance Corp. allocates $566m to back Uzbekistan’s local banks

RIYADH: Thirteen banks in Uzbekistan have secured a combined $566 million in financing through a key initiative by the International Islamic Trade Finance Corp., a member of the Islamic Development Bank Group.

The funding aims to foster job creation, drive economic development, and empower local communities, according to a report by the Saudi Press Agency.

ITFC is committed to using these funds to support the private sector’s import and pre-export requirements, with a particular focus on small and medium-sized enterprises, which are vital to the country's economic growth and resilience.

This initiative aligns with the ITFC's broader mission to provide integrated trade solutions to member countries of the Islamic Development Bank. The institution, which currently has 57 member states, is primarily funded by Saudi Arabia, the largest shareholder with a 22.5 percent stake in the corporation.

The funds will specifically target SMEs, which are globally recognized as key drivers of economic growth. The ITFC has already provided over $69 billion in financing to the member countries of the Organization of Islamic Cooperation, solidifying its position as a leading provider of trade solutions within the OIC community.

In addition to financial support, ITFC also focuses on improving access to trade finance and offering technical assistance programs. These efforts equip member-state entities with the tools they need to compete successfully in the global marketplace.


Closing Bell: Saudi main index sheds 50 points to 12,099

Closing Bell: Saudi main index sheds 50 points to 12,099
Updated 12 December 2024
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Closing Bell: Saudi main index sheds 50 points to 12,099

Closing Bell: Saudi main index sheds 50 points to 12,099

RIYADH: Saudi Arabia’s Tadawul All Share Index continued its downward trend for the second consecutive day on Thursday as it shed 49.86 points or 0.41 percent to close at 12,099.33. 

The total trading turnover of the benchmark index was SR4.77 billion ($1.27 billion), with 101 of the listed stocks advancing while 123 declined. 

The Kingdom’s parallel market Nomu also slipped by 0.57 percent to 31,100.89, while the MSCI Tadawul Index shed 7.37 points to close at 1,519.01. 

Sumou Real Estate Co. was the best-performing stock of the day. The company’s share price soared by 9.98 percent to SR44.65. 

Zamil Industrial Investment Co. was another top gainer, as the firm’s share price increased by 6.62 percent to SR33.80.

Meanwhile, the share price of Al-Baha Investment and Development Co. increased by 6.45 percent to SR0.33, and Saudia Dairy and Foodstuff Co. also advanced by 5.88 percent to SR360.

Conversely, Makkah Construction and Development Co.’s share price slipped by 3.04 percent to SR114.80. 

The best performer on the parallel market was Riyadh Steel Co., as its share price increased by 17.37 percent to SR2.50. 

Other top performers on Nomu were Dar Almarkabah for Renting Cars Co. whose share prices increased by 12.90 percent to SR70 while Watani Iron Steel Co.’s share prices grew by 12.20 percent to SR3.03.

On the announcements front, Almasane Alkobra Mining Co. revealed that it received a license from the Ministry of Industry and Mineral Resources to explore chromium, manganese, copper, and nickel in the Al-Baha region. 

In a statement to Tadawul, the mining firm said the license is valid until Dec. 10, 2029. 

The company added that the timing of any potential development of this license will become clear after the completion of exploration work and studies within the legal period. 

AMAK’s share price, however, slipped by 2.49 percent to SR70.40. 


Saudi Green Building Forum achieves permanent observer status with UNCCD

Saudi Green Building Forum achieves permanent observer status with UNCCD
Updated 12 December 2024
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Saudi Green Building Forum achieves permanent observer status with UNCCD

Saudi Green Building Forum achieves permanent observer status with UNCCD

RIYADH: The Saudi Green Building Forum SGBF has been granted permanent observer status by the United Nations Convention to Combat Desertification.

This recognition underscores the Forum’s substantial contributions to advancing sustainable building practices and the Kingdom’s leadership in global environmental efforts.

The decision follows the forum’s prior pending status, which was resolved with the announcement of the final decision at COP16, held in Riyadh.

“This process takes months leading up to COP, during which the organization must demonstrate its engagement with clear justifications, specific goals, and evidence of its work within the community,” Faisal Al-Fadl, secretary-general of SGBF, told Arab News.

The SGBF’s involvement aligns with the provisions outlined in the UNCCD’s internal regulations, specifically concerning observer status, as defined in Article 22 and the COP rules, according to a press release.

SGBF was among the 473 organizations officially accredited during COP16, reflecting the international collaboration and commitment to combating desertification showcased at the conference.

This initiative is part of a broader strategy to integrate scientific and community-based approaches to environmental management.

Al-Fadl explained that under the UNCCD’s processes, rules, and regulations — agreed upon by its member states — any organization seeking observer status must participate in the COP.

The COP, hosted by the member state, is responsible for deciding whether to approve or deny the request for observer status.

“We set up a pavilion dedicated to the event, where each day highlighted a specific sustainable development goal. At SGBF, we actively promote SDGs as part of our consultative status with the United Nations,” Al-Fadl said.

He continued: “Green building is all about renewable energy, clean water, eco-friendly materials, and green infrastructure that supports the human experience. This concept is applied not just to buildings, but to neighborhoods and cities.”

Al-Fadl emphasized that SGBF’s work closely aligns with the SDGs, which encompass social, environmental, and economic sustainability. This is also in harmony with Saudi Vision 2030, which serves as the foundation for the Kingdom’s national SDGs.

“We capitalized on our accreditation, bringing more than 100 delegates and speakers, including high-level representatives, youth, and women. We are incredibly proud of this opportunity to engage on such a meaningful platform,” Al-Fadl said.

He added: “This has also provided an opportunity for many consultants, who might not have had the chance otherwise, to participate. Our accreditation is especially significant for the nonprofit and non-governmental sector, enabling us to engage with civil society, whether private entrepreneurs or young individuals.”

Al-Fadl further highlighted the chance to showcase the Forum’s partnerships with various entities, including government organizations. “For example, we signed agreements with the Ministry of Environment and nonprofit organizations, as well as achieving accreditation across Gulf states,” he noted.

The UNCCD also extended its accreditation to other organizations, including the Environment and Desertification Association and the Weather and Climate Association, after a thorough evaluation of their submitted documents.

Dedicated to combating land desertification, the UNCCD fosters partnerships between developed and developing nations, focusing on technology and knowledge-sharing for effective land management.

With 195 member states, the UNCCD aims to improve living conditions, enhance land productivity, and mitigate the impacts of drought while promoting public engagement in combating desertification and advancing sustainable development.


Saudi Arabia to deliver financially streamlined World Cup 2034, with soaring revenues: FIFA evaluation

Saudi Arabia to deliver financially streamlined World Cup 2034, with soaring revenues: FIFA evaluation
Updated 32 min 47 sec ago
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Saudi Arabia to deliver financially streamlined World Cup 2034, with soaring revenues: FIFA evaluation

Saudi Arabia to deliver financially streamlined World Cup 2034, with soaring revenues: FIFA evaluation

RIYADH: Saudi Arabia is set to deliver a FIFA World Cup in 2034 that saves $450 million on costs but surpasses revenue trends, according to a report from the world football governing body.

The bid evaluation document projects money from ticket and hospitality will surpass baseline projections by 32 percent, or $240 million.

FIFA evaluated organizing costs using figures from previous World Cups, adjusted for the expanded 104-match format, a 14-stadium concept, inflation, and local economic conditions. 

While excluding expenses like prize money and team participation costs, FIFA highlighted Saudi Arabia’s competitive pricing, with key cost areas such as technical services and security forecast to be $133 million and $58.9 million below baseline, respectively.

By comparison, Qatar spent an estimated $220 billion to host the 2022 World Cup, the most expensive in history. Much of that investment went toward infrastructure, including stadiums, roads, and public transport.

Hosting major sporting events such as the FIFA World Cup are aligned with Saudi Arabia’s economic diversification efforts which aims to reduce the Kingdom’s decades-long dependence on crude revenues. 

In November, experts told Arab News that Saudi Arabia could expect a gross domestic product boost of between $9 billion and $14 billion from the event, as well as the creation of 1.5 million new jobs, and the construction of 230,000 hotel rooms developed across five host cities.

For Saudi Arabia, key cost drivers include $378.4 million for television operations, $273.8 million for workforce management, $124 million for transport, $111.1 million for team services, and $99.5 million for IT and telecommunications, according to the bid report. 

“Virtually all cost drivers are currently forecast as being below the baseline, with some cost items, such as staffing costs, event transport, team accommodation, and competition management generally expected to remain in line with baseline levels,” FIFA noted. 

The governing body expects food and beverage revenues to align with baseline figures, while online and licensing revenue streams are forecast to outperform by $7 million. 

The Kingdom’s time zone, which allows viewers across Asia, Europe, and Africa to watch matches during prime hours, is expected to drive a 10 percent increase in global live television audiences compared to the 2026 edition. 

Sustainability at the core 

Saudi Arabia has pledged to host the 2034 tournament with sustainability at the forefront, incorporating renewable energy and achieving LEED Gold certification for buildings and operations. These green initiatives are expected to reduce energy consumption significantly compared to traditional standards. 

The Kingdom also plans to repurpose World Cup stadiums as multi-purpose entertainment venues and homes for Saudi Pro League teams, ensuring long-term benefits for football and local communities. 

Infrastructure development 

The World Cup bid underscores Saudi Arabia’s commitment to becoming a global tourism hub. 

Each proposed host city has undergone significant development under Vision 2030, with heavy investments in tourism infrastructure to support major events across sports, arts, culture, and business. 

Events like FIFA World Cup 2034 and Expo 2030 are expected to strengthen Saudi Arabia’s non-oil economy, providing business and lending opportunities for financial institutions, according to a November report by Moody’s. 

 


Vision 2030 can inspire global solutions to land degradation, energy crisis

Vision 2030 can inspire global solutions to land degradation, energy crisis
Updated 12 December 2024
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Vision 2030 can inspire global solutions to land degradation, energy crisis

Vision 2030 can inspire global solutions to land degradation, energy crisis
  • UNCCD executive secretary discusses how Saudi Arabia’s strategy can lead global environmental change

RIYADH: Achieving Saudi Arabia’s Vision 2030 will require significant investment in land restoration and renewable energy, as the nation’s ambitious strategy extends beyond national goals, according to a senior executive.

In an interview with Arab News on the sidelines of COP16 in Riyadh, Ibrahim Thiaw, executive secretary of the UN Convention to Combat Desertification, emphasized that the Kingdom’s transformative national strategy should be a global model.

“Vision 2030 is a national vision from Saudi Arabia. But it can only be achieved if we invest more in land restoration. It can only be achieved if we invest more in empowering communities to manage their resources,” Thiaw said.

He further added: “It is certainly an excellent vision proposed by the Kingdom of Saudi Arabia. But it goes beyond in terms of vision, in terms of ambition. It has to be implemented in many other parts of the world.”

Thiaw highlighted the need for innovative solutions to address global food production challenges. For example, he pointed out the importance of doubling food production by 2050 without exhausting limited resources, calling for the adoption of technologies like artificial intelligence, precision agriculture, and water-efficient systems.

He also noted that Vision 2030 stresses the importance of balancing traditional farming techniques with modern technologies to enhance soil productivity, reduce pollution, and avoid the expansion of agricultural land.

“Saudi Arabia is already doing quite a bit in land restoration,” Thiaw said, referencing efforts through institutions like the Saudi Fund for Development, which has active portfolios across Africa, Asia, and Latin America.

“But we all need to do more,” Thiaw added. “That will probably require that the Saudi Fund for Development, as well as other institutions where Saudi Arabia is the main shareholder, like the Islamic Development Bank, the OPEC Fund, and many other institutions, realign their portfolios to match the ambitions of COP16.”

As a G20 member, Thiaw urged the Kingdom to help rally other nations to meet the G20 goal of restoring 50 percent of degraded land by 2040. The focus, he stressed, must not only be on making commitments but also on ensuring their effective implementation.

“Saudi Arabia will be appreciated if it works with its peers from other countries, with South Africa, which is now the current presidency of G20, and then the future presidencies, as well as all members of the G20,” Thiaw said.

Thiaw also emphasized the critical importance of integrating traditional methods, like underground irrigation, with modern technologies such as desalination and renewable energy to support sustainable development, especially in arid regions. These combined solutions can address challenges like water scarcity and energy demands while promoting economic growth.

“This is where you need new technologies and combine them with the traditional technologies, including the underground irrigation that has been known here for millennia, and so we can use new technologies to make additional water available,” Thiaw said.

He added: “I visited the Saudi pavilion here. I just could not believe what I saw, and from 300 megawatts just a few years back, there are now 44 gigawatts moving to 80 GW. I was stunned!”

Thiaw explained that Saudi Arabia’s progress demonstrates how integrating traditional and new technologies can lead the way in energy transitions, land management, and water accessibility, creating a better future for all.

Key outcomes

Thiaw outlined some of the key outcomes expected from COP16, including decisions on proactive drought resilience strategies to prepare communities, businesses, and governments for future droughts rather than simply reacting to crises.

An additional focus is scaling up commitments to restore degraded land, with a global reserve of 1.5 billion hectares of damaged land, and reversing the trend of losing fertile soil annually — an area the size of Egypt.

He stressed that financing is central to these efforts: “We have indicated in our reports that the world needs to invest $1 billion per day. $1 billion per day needs to be invested in land restoration worldwide. Now that is a huge figure. It’s not small. This is not necessarily only public funds, but also private funds.”

Thiaw added: “Not only public funds, but also private funds. The private sector must invest to sustain productivity, while harmful taxpayer-funded subsidies should be redirected toward environmentally friendly and land-friendly activities.”

Collaboration with Saudi Arabia

To address these pressing challenges, Thiaw expressed the UNCCD’s eagerness to collaborate with Saudi Arabia in integrating advanced technologies with traditional practices.

“Our ambition is to help countries transition effectively, and Saudi Arabia is uniquely positioned to lead this effort,” Thiaw said, highlighting the Kingdom’s capacity, energy, and financial resources.

He added: “Now, there is a lot of discussion at the moment under the climate negotiations to see whether we can have net zero in terms of emissions. But if you are to achieve net zero in terms of emissions, it is not only emissions coming from industry, but emissions coming from land use, because land use is the second-largest emitter.”

Thiaw emphasized that degrading land increases carbon emissions, whereas restoring land acts as a natural solution by capturing carbon and returning it to the soil, thus helping to mitigate climate change.

The progress showcased at the Saudi pavilion highlights how merging traditional practices with advanced technologies can pave the way for sustainable energy transitions, better land and water management, and long-term environmental and economic stability. This model serves as a benchmark for addressing resource challenges in arid regions and other vulnerable areas globally.