The benefits of local green taxonomies

The benefits of local green taxonomies

The benefits of local green taxonomies
Aramco's direct air capture pilot plant marks a significant milestone in its mission to reduce emissions. (File)
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As environmental, social, and governance investing expands rapidly across the globe, the framework for sustainable finance is becoming increasingly localized.

While the EU Green Taxonomy has provided a strong conceptual foundation for the environmental management of financial tools, the global scope of sustainability now demands more tailored regional approaches.

Many emerging markets and developing economies are preparing to attract green capital to support sustainable development. For them, localizing sustainable taxonomies is not only possible but essential.

Climate change is among the greatest global challenges, but its solutions must be grounded in local realities.

Environmental issues and development priorities vary widely by region. For example, Gulf Cooperation Council countries must diversify away from oil while simultaneously tackling acute water scarcity.

Some observers argue that the EU Taxonomy Regulation may not align with Saudi Arabia’s Vision 2030 economic diversification strategy, as it excludes key transitional elements such as blue hydrogen and carbon capture technologies.

Similarly, ASEAN countries heavily dependent on coal and vulnerable to climate impacts require sustainability frameworks that balance development with environmental responsibility.

Imposing one-size-fits-all standards — such as adopting the EU taxonomy wholesale — risks weakening national key performance indicators or discouraging investment in vital transitional sectors.

In response, various countries and regions have developed their own taxonomies aligned with local strategies.

China’s Green Bond Endorsed Project Catalogue, updated in 2021, is one of the most advanced systems outside the EU. Notably, it removed “clean coal” from the eligibility list — a move more consistent with global investor expectations and China’s target of carbon neutrality by 2060.

The ASEAN Taxonomy for Sustainable Finance, also introduced in 2021, uses a tiered system to reflect the differing development stages of member states.

A sustainable future will not be created by copy-and-paste regulation. It will be driven by innovation and tailored, context-specific solutions that align with global objectives.

Majed Alqatari

In the Middle East, Saudi Arabia’s Public Investment Fund has launched a sustainable finance framework that balances international standards with domestic priorities. The UAE has also issued its Green Bond and Sukuk Framework.

These efforts reflect a broader regional ambition — reinforced at COP28 — to establish the Middle East as a hub for green finance. Local taxonomies are being designed not only to address environmental goals but also to unlock access to capital.

For instance, HSBC reports that green and sustainable bond issuance in the Middle East and North Africa reached $18.7 billion in 2023 — a 42 percent increase from the previous year. Improved regulatory clarity played a significant role.

Localized taxonomies help de-risk sustainable investments by offering issuers certainty and investors credibility.

They provide a shared language through which market players — banks, asset managers, and regulators — can define and apply sustainable finance principles. Well-designed, transparent systems also improve access to international capital markets.

Investor demand for taxonomy-aligned disclosures is on the rise. A 2023 PwC survey found that 79 percent of institutional investors were willing to back companies with high-quality ESG taxonomies.

As a result, countries that implement robust, context-sensitive taxonomical frameworks can attract greater investor confidence and deeper pools of green capital.

Aligning with international frameworks like the International Platform on Sustainable Finance or the Climate Bonds Standard enhances compatibility and reduces the risk of greenwashing — a top concern in global regulation.

Ultimately, the future of sustainable finance lies not only in harmonization but in practical application. While the EU Taxonomy remains influential, the emergence of regional taxonomies is a welcome evolution.

These self-directed systems allow nations to pursue climate goals without hindering economic growth. But for them to succeed, they must be built on best practices and supported by policymakers, multilateral banks, and the private sector.

A sustainable future will not be created by copy-and-paste regulation. It will be driven by innovation and tailored, context-specific solutions that align with global objectives.

Majed Al-Qatari is a sustainability leader and ecological engineer experienced in advancing environment, social, governance and sustainability goals.


 

Disclaimer: Views expressed by writers in this section are their own and do not necessarily reflect Arab News' point of view

Jordan reopens airspace after overnight Israel-Iran attacks

Jordan reopens airspace after overnight Israel-Iran attacks
Updated 3 min 31 sec ago
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Jordan reopens airspace after overnight Israel-Iran attacks

Jordan reopens airspace after overnight Israel-Iran attacks

AMMAN: Jordan announced the reopening of its airspace Sunday morning after a night of attacks by arch-foes Israel and Iran.
The civil aviation authority in Jordan, which borders Israel, said in a statement that the country’s airspace had been reopened “for civilian flights following a careful risk assessment.”
The kingdom had closed the airspace late Saturday, its second closure since the start of the most intense direct confrontation between Israel and Iran.


Police say one ‘critically injured’ in shooting at US protest

Police say one ‘critically injured’ in shooting at US protest
Updated 7 min 57 sec ago
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Police say one ‘critically injured’ in shooting at US protest

Police say one ‘critically injured’ in shooting at US protest

WASHINGTON: A shooting at a protest against President Donald Trump’s policies in the western state of Utah left one person with “life-threatening injuries,” police said, adding that three others were taken into custody.
Police said the incident occurred around 8:00 p.m. Saturday (0200 GMT Sunday) in Utah’s capital Salt Lake City during a protest that drew about 10,000 people — one of several “No Kings” demonstrations across the United States rallying against Trump.
“We can confirm the shooting resulted in one person being critically injured. The patient has been taken to a hospital with life-threatening (injuries),” said the Salt Lake City police department in a social media post, adding that they had “a person of interest in custody.”
Police Chief Brian Redd stressed during a news conference that the events leading up to the shooting “were very peaceful,” adding that the first person taken in custody had a gunshot wound and was transported to the hospital.
Two other individuals involved in the incident were also taken into custody, he said.
“At this time, there is... no ongoing threats to the public,” Redd said, adding that it was too early in their investigation to say if the shooting was politically motivated.
City Mayor Erin Mendenhall said “this act of violence does not define” Salt Lake City — a Democratic bastion in the deep-red Republican state of Utah.
“The purpose of today’s demonstration was a powerful and peaceful expression until this event and that cannot be overshadowed or silenced by a single act meant to harm,” she said.
“We are a nation that needs our First Amendment right, we deserve to protest in peace. And what happened today I hope will not silence the voices of the public who deserve to have their voices heard.”


Israel’s goal might be regime change in Iran: Experts

Israel’s goal might be regime change in Iran: Experts
Updated 11 min 22 sec ago
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Israel’s goal might be regime change in Iran: Experts

Israel’s goal might be regime change in Iran: Experts
  • Iran’s leadership will define victory as being its ‘survival’: Middle East Institute senior fellow
  • Ex-US Navy commander: ‘It’s a long shot that they’ll come to the (negotiating) table in the near future’

CHICAGO: Israel’s military assault against Iran could continue for weeks, with the possible goal of regime change, a panel of experts hosted by the Middle East Institute said on Saturday.

Panelists included retired Gen. Joseph L. Votel, former commander of US Central Command; retired Vice Adm. Kevin Donegan, former commander of the US Navy’s Fifth Fleet; and Alex Vatanka, MEI senior fellow and Iran specialist who also teaches at the Wright-Patterson Air Force Base in Ohio.

Vatanka said it is too early to determine if Israel’s main goal besides crippling Iran’s nuclear program is regime change, but “we might be going in (that) direction.”

He added: “That’s certainly what I think a majority of Iranian officials think that Israel wants. The big unknown in all of this is whether the Israelis somehow can get (US President Donald) Trump to buy into it the way he bought into the initial attack on Iran.”

Israel has launched attacks against an array of Iranian targets, including its military leadership and nuclear program. Tehran has responded by launching missiles and drones at Israel.

The panelists were in agreement in their belief that the conflict would not expand to include other countries.

Iran’s leadership will define victory as being its “survival,” Vatanka said, adding that while Israel has the backing of the US and “most of Europe,” Tehran “isn’t getting any help from anyone.”

He said: “I don’t think they’re getting help from what’s left of the axis of resistance … I question what the axis of resistance members can actually do at this point.”

Its members include Hamas and Hezbollah, which have been severely weakened by Israel’s military, and the Houthis in Yemen. It included Syria until the fall of President Bashar Assad in December.

Donegan said: “I think the question is, does Iran think they’ve done enough in terms of lashing back that they can throw an olive branch to get some talks going again? I think it’s a long shot, to be honest, that they’ll come to the table in the near future.”

Iran could close the Strait of Hormuz, but “the problem with closing Hormuz is they then don’t get the economic benefit of flowing their oil out,” he added.

The end game will be defined by how far Israel intends to go with its war, the panelists said.

“The Americans are playing the good cop here. President Trump has kept the door for diplomacy open,” Vatanka said.

“The Israelis are playing the bad cop, saying, ‘If you don’t give Trump what he wants then we’ll come after you.’”


Gulf markets slump on escalation in Israel-Iran conflict

Gulf markets slump on escalation in Israel-Iran conflict
Updated 22 min 42 sec ago
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Gulf markets slump on escalation in Israel-Iran conflict

Gulf markets slump on escalation in Israel-Iran conflict
  • Israel and Iran launched fresh attacks on each other overnight into Sunday

LONDON: Stock markets in the Gulf tumbled in early trade on Sunday as conflict escalated between Israel and Iran, sparking fears of broader Middle East conflict.
Israel and Iran launched fresh attacks on each other overnight into Sunday.
Israel said it had targeted Iran’s nuclear facilities, ballistic missile factories and military commanders on Friday at the start of what it warned would be a prolonged operation to prevent Tehran from building an atomic weapon. Iran has promised a harsh response.
Tehran has called off nuclear talks that the United States had said were the only way to halt Israel’s bombing.
The Qatari stock market index slid 4 percent, with all constituents in negative territory. Among them was Qatar National Bank, the Gulf’s biggest lender, which retreated 3.3 percent.
Saudi Arabia’s benchmark index plunged 3.6 percent as stocks fell across sectors, while the Kuwait bourse lost 3 percent and the Bahrain index eased by 0.8 percent.
Elsewhere, the Muscat Stock Exchange registered a 1.9 percent fall.


Anti-Trump demonstrators crowd streets, parks and plazas across the US. Organizers say millions came

Anti-Trump demonstrators crowd streets, parks and plazas across the US. Organizers say millions came
Updated 22 min 12 sec ago
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Anti-Trump demonstrators crowd streets, parks and plazas across the US. Organizers say millions came

Anti-Trump demonstrators crowd streets, parks and plazas across the US. Organizers say millions came
  • Organizers of the “No Kings” demonstrations said millions had marched in hundreds of events
  • Governors across the US had urged calm and vowed no tolerance for violence, while some mobilized the National Guard ahead of marchers gathering

PHILADELPHIA: Masses of demonstrators packed into streets, parks and plazas across the United States on Saturday to protest President Donald Trump, marching through downtowns and small towns, blaring anti-authoritarian chants mixed with support for protecting democracy and immigrant rights.
Organizers of the “No Kings” demonstrations said millions had marched in hundreds of events. Governors across the US had urged calm and vowed no tolerance for violence, while some mobilized the National Guard ahead of marchers gathering.
Confrontations were isolated. But police in Los Angeles, where protests over federal immigration enforcement raids erupted a week earlier and sparked demonstrations across the country, used tear gas and crowd-control munitions to clear out protesters after the formal event ended. Officers in Portland also fired tear gas and projectiles to disperse a crowd that protested in front of a US Immigration and Customs Enforcement building well into the evening.
And in Salt Lake City, Utah, police were investigating a shooting during a march downtown that left one person critically injured. Three people were taken into custody, including a man believed to be the shooter, who also suffered a gunshot wound, according to Police Chief Brian Redd.
Redd said it was too early to tell if the shooting was politically motivated and whether those involved knew each other. The shooter appeared to be walking alongside the group of thousands who were marching, he added. Video feeds showed demonstrators running for safety as gunshots rang out.
Huge, boisterous crowds marched, danced, drummed, and chanted shoulder-to-shoulder in New York, Denver, Chicago, Austin and Los Angeles, some behind “no kings” banners. Atlanta’s 5,000-capacity event quickly reached its limit, with thousands more gathered outside barriers to hear speakers in front of the state Capitol. Officials in Seattle estimated that more than 70,000 people attended the city’s largest rally downtown, the Seattle Times reported.
Trump was in Washington for a military parade marking the Army’s 250th anniversary that coincides with the president’s birthday. About 200 protesters assembled in northwest Washington’s Logan Circle and chanted “Trump must go now” before erupting in cheers. A larger-than-life puppet of Trump — a caricature of the president wearing a crown and sitting on a golden toilet — was wheeled through the crowd.
In some places, organizers handed out little American flags while others flew their flags upside down, a sign of distress. Mexican flags, which have become a fixture of the Los Angeles protests against immigration raids, also made an appearance at some demonstrations Saturday.
In Culpepper, Virginia, police said one person was struck by an SUV when a 21-year-old driver intentionally accelerated his SUV into the crowd as protesters were leaving a rally. The driver was charged with reckless driving.
The demonstrations come on the heels of the protests over the federal immigration enforcement raids that began last week and Trump ordering the National Guard and Marines to Los Angeles, where protesters blocked a freeway and set cars on fire.
“Today, across red states and blue, rural towns and major cities, Americans stood in peaceful unity and made it clear: we don’t do kings,” the No Kings Coalition said in a statement Saturday afternoon after many events had ended.
Philadelphia
Thousands gathered downtown, where organizers handed out small American flags and people carried protest signs saying “fight oligarchy” and “deport the mini-Mussolinis.”
Karen Van Trieste, a 61-year-old nurse who drove up from Maryland, said she grew up in Philadelphia and wanted to be with a large group of people showing her support.
“I just feel like we need to defend our democracy,” she said. She is concerned about the Trump administration’s layoffs of staff at the US Centers for Disease Control and Prevention, the fate of immigrant communities and Trump trying to rule by executive order, she said.
A woman wearing a foam Statue of Liberty crown brought a speaker system and led an anti-Trump sing-along, changing the words “young man” in the song “Y.M.C.A.” to “con man.”
”I am what the successful American dream looks like,” said C.C. Téllez, an immigrant from Bolivia who attended the protest. “I’ve enjoyed great success here in the United States, and I’ve also contributed heavily to my community. And if there was space for me, I think there’s a way for everybody else to belong here as well.”
Los Angeles
Thousands gathered in front of City Hall, waving signs and listening to a Native American drum circle before marching through the streets.
As protesters passed National Guard troops or US Marines stationed at various buildings, most interactions were friendly, with demonstrators giving fist bumps or posing for selfies. But others chanted “shame” or “go home” at the troops.
Amid signs reading “They fear us don’t back down California” and “We carry dreams not danger, ” one demonstrator carried a 2-foot-tall (60-centimeter) Trump pinata on a stick, with a crown on his head and sombrero hanging off his back. Another hoisted a huge helium-filled orange baby balloon with blond hair styled like Trump’s.
A few blocks from City Hall, protesters gathered in front of the downtown federal detention center being guarded by a line of Marines and other law enforcement. It was the first time that the Marines, in combat gear and holding rifles, have appeared at a demonstration since they were deployed to city on Friday with the stated mission of defending federal property.
Peter Varadi, 54, said he voted for Trump last November for “economic reasons.” Now, for the first time in his life, he is protesting, waving a Mexican and US combined flag.
“I voted for Donald Trump, and now I regret that, because he’s taken this fascism to a new level,” Varadi said. “It’s Latinos now. Who’s next? It’s gays. Blacks after that. They’re coming for everybody.”
Even after the formal event ended, the downtown streets were packed with a jubilant crowd as people danced to salsa music and snacked on hot dogs and ice cream bought from vendors, many of whom are Latino immigrants. But the previously calm demonstration turned confrontational as police on horseback moved into the crowd and struck some people with wood rods and batons as they cleared the street in front of the federal building.
New York City
Marchers in the crowd that stretched for blocks along Fifth Avenue had diverse reasons for coming, including anger over Trump’s immigration policies, support for the Palestinian people and outrage over what they said was an erosion of free speech rights.
But there were patriotic symbols, too. Leah Griswold, 32, and Amber Laree, 59, who marched in suffragette white dresses, brought 250 American flags to hand out to people in the crowd.
“Our mothers who came out, fought for our rights, and now we’re fighting for future generations as well,” Griswold said.
Some protesters held signs denouncing Trump while others banged drums.
“We’re here because we’re worried about the existential crisis of this country and the planet and our species,” said Sean Kryston, 28.
Minnesota
Gov. Tim Walz and law enforcement encouraged people not to attend rallies “out of an abundance of caution” following the shootings of the Democratic state lawmakers.
Dozens of events were canceled, but tens of thousands still turned out for demonstrations in Duluth, Rochester and St. Paul, which included a march to the state Capitol. Walz canceled his scheduled appearance at the St. Paul event.
Authorities said the suspect had “No Kings” flyers in his car and writings mentioning the names of the victims as well as other lawmakers and officials, though they could not say if he had any other specific targets.
Seda Heng, 29, of Rochester, said she was heartbroken by the shootings, but still wanted to join the rally there. “These people are trying to do what they can for their communities, for the state, for the nation,” Heng told the Minnesota Star-Tribune.
North Carolina
Crowds cheered anti-Trump speakers in Charlotte’s First Ward Park before marching, chanting “No kings. No crowns. We will not bow down.”
Marchers stretched for blocks, led by a group of people holding a giant Mexican flag and bystanders cheering and clapping along the way.
Jocelyn Abarca, a 21-year-old college student, said the protest was a chance to “speak for what’s right” after mass deportations and Trump’s deployment of the National Guard in Los Angeles.
“If we don’t stop it now, it’s just going to keep getting worse,” she said.
Naomi Mena said she traveled an hour to demonstrate in Charlotte to represent her “friends and family who sadly can’t have a voice out in public now” to stay safe.
Texas
A rally at the Texas Capitol in Austin went off as planned despite state police briefly shutting down the building and the surrounding grounds after authorities said they received a “credible threat” to Democratic state lawmakers who were to attend.
Dozens of state troopers swarmed through the grounds about four hours before the event, but the area was later opened and the rally started on time. The building remained closed.
The Department of Public Safety later said one person was taken into custody “in connection with the threats made against state lawmakers” after a traffic stop in La Grange, Texas, about 65 miles (105 kilometers) east of Austin. State police did not detail the threat or immediately identify the person, but said there was no additional active threat.
Mississippi
A demonstration of hundreds of people opened to “War Pigs” by Black Sabbath playing over a sound system on the state Capitol lawn in Jackson.
“A lot of stuff that’s going on now is targeting people of color, and to see so many folks out here that aren’t black or brown fighting for the same causes that I’m here for, it makes me very emotional,” said Tony Cropper, who traveled from Tennessee to attend the protest.
Some people wore tinfoil crowns atop their heads. Others held signs inviting motorists to “Honk if you never text war plans.”
Melissa Johnson said she drove an hour-and-a-half to Jackson to protest because “we are losing the thread of democracy in our country.”
Portland
Earlier in the day, thousands of protesters lined the streets in downtown Portland for several blocks, waving signs as passing cars honked in support. They marched around the city draped in American flags to the beat of drums and music.
By late afternoon, a small group of demonstrators amassed across the river to protest in front of an ICE office where three people were arrested Wednesday night after starting a small fire against the building, police said.
Federal immigration officers fired tear gas, flash bangs and rubber bullets in an effort to clear out the remaining protesters in the evening. Some protesters threw water bottles back and tended to each other’s wounds. The police department wrote on X that the event was declared a riot.
At least two people were detained and taken inside the federal immigration building.