MENA Climate Week Kicks off in Riyadh

Saudi Minister of Energy Prince Abdulaziz bin Salman (Saudi and Green Middle East Initiative)
Saudi Minister of Energy Prince Abdulaziz bin Salman (Saudi and Green Middle East Initiative)
TT

MENA Climate Week Kicks off in Riyadh

Saudi Minister of Energy Prince Abdulaziz bin Salman (Saudi and Green Middle East Initiative)
Saudi Minister of Energy Prince Abdulaziz bin Salman (Saudi and Green Middle East Initiative)

The second-ever Middle East and North Africa (MENA) Climate Week kicked off Sunday in Riyadh in cooperation with the United Nations Framework Convention on Climate Change (UNFCCC) secretariat.

Saudi Minister of Energy Prince Abdulaziz bin Salman inaugurated the event in the presence of several global officials, policymakers, private sector firms, youth campaigners, and other key stakeholders in the climate change and sustainability sphere.

Prince Abdulaziz asserted the need to work hard and ensure the success of the UN Climate Change Conference (COP28) in Dubai next November, announcing that the second day of the event will witness the unveiling of a credible, transparent, and adaptable domestic market mechanism.

The Minister also declared that Saudi Arabia will soon have the first hydrogen-powered train in the Middle East.

The Saudi government will host the event between October 8 and 12 in the Boulevard Riyadh City to shed light on challenges and solutions in a region that is among the most vulnerable to the effects of climate change.

Participants in Riyadh will speak about the challenges and opportunities for climate action and support in the MENA region, which will help inform the global stocktake and accelerate the implementation of the Paris Agreement.

Saudi Arabia is one of the most active countries on climate change, making it a new green giant with an influential and clear role in confronting this global battle.

The Kingdom launched several initiatives, plans, and programs towards achieving zero neutrality by 2060.

The event aims to enhance joint action towards adopting sustainable and integrated climate solutions, accomplish the collective mission of confronting climate challenges, and achieve the Paris Agreement's goals.

The event will include three ministerial sessions and a regional dialogue on climate change. The first session will address enhancing comprehensive participation and the circular carbon economy to achieve fair and equitable energy transitions.

The second session will discuss comprehensive financial and economic diversification towards achieving the goals of the Paris Climate Agreement.

The third session will discuss efforts to keep the global temperature rise below 1.5 degrees.

The event will also witness a GCC Roundtable Meeting of ministers concerned and an Arab League Roundtable, which will discuss expectations of COP28.

The activities of the rest of the week will witness the launch of the four tracks of dialogue in this regard, in a joint effort between the Saudi Energy Ministry, the Secretariat of the UNFCCC, and the UN Climate Change Pioneers.

The tracks are: the energy systems and industry; the cities, urban and rural settlements, infrastructure, and transport; land, ocean, food, and water; and societies, health, livelihoods, and economies.

The week's program will include many climate activities, meetings, and accompanying exhibitions that discuss issues of the environment, climate, and sustainability, and various programs and events that add cultural and social dimensions to the week's activities.

Notably, the event aims to discuss issues, challenges, and opportunities related to climate change and express opinions on them, to be addressed at COP28.

MENA Climate Week is the second of four Regional Climate Weeks in 2023.

UN Climate Change organizes it with global partners UN Development Program, UN Environment Program, and the World Bank Group. Partners based in MENA include the International Renewable Energy Agency, the Islamic Development Bank, the League of Arab States Secretariat, and the UN Economic and Social Commission for Western Asia.

Saudi Arabia intensified efforts to combat climate change, notably in 2021 when Crown Prince Mohammed bin Salman announced the goal of achieving net-zero emissions through a circular carbon economy approach aligned with developmental plans and economic diversification.

The Crown Prince stressed that this approach aligns with a "moving baseline" and preserves the Kingdom's leadership role in enhancing the stability and security of global energy markets while leveraging mature technologies for emissions management and reduction.



Firm Dollar Keeps Pound, Euro and Yen Under Pressure

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo
TT

Firm Dollar Keeps Pound, Euro and Yen Under Pressure

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo

The US dollar charged ahead on Thursday, underpinned by rising Treasury yields, putting the yen, sterling and euro under pressure near multi-month lows amid the shifting threat of tariffs.

The focus for markets in 2025 has been on US President-elect Donald Trump's agenda as he steps back into the White House on Jan. 20, with analysts expecting his policies to both bolster growth and add to price pressures, according to Reuters.

CNN on Wednesday reported that Trump is considering declaring a national economic emergency to provide legal justification for a series of universal tariffs on allies and adversaries. On Monday, the Washington Post said Trump was looking at more nuanced tariffs, which he later denied.

Concerns that policies introduced by the Trump administration could reignite inflation has led bond yields higher, with the yield on the benchmark 10-year US Treasury note hitting 4.73% on Wednesday, its highest since April 25. It was at 4.6709% on Thursday.

"Trump's shifting narrative on tariffs has undoubtedly had an effect on USD. It seems this capriciousness is something markets will have to adapt to over the coming four years," said Kieran Williams, head of Asia FX at InTouch Capital Markets.

The bond market selloff has left the dollar standing tall and casting a shadow on the currency market.

Among the most affected was the pound, which was headed for its biggest three-day drop in nearly two years.

Sterling slid to $1.2239 on Thursday, its weakest since November 2023, even as British government bond yields hit multi-year highs.

Ordinarily, higher gilt yields would support the pound, but not in this case.

The sell-off in UK government bond markets resumed on Thursday, with 10-year and 30-year gilt yields jumping again in early trading, as confidence in Britain's fiscal outlook deteriorates.

"Such a simultaneous sell-off in currency and bonds is rather unusual for a G10 country," said Michael Pfister, FX analyst at Commerzbank.

"It seems to be the culmination of a development that began several months ago. The new Labour government's approval ratings are at record lows just a few months after the election, and business and consumer sentiment is severely depressed."

Sterling was last down about 0.69% at $1.2282.

The euro also eased, albeit less than the pound, to $1.0302, lurking close to the two-year low it hit last week as investors remain worried the single currency may fall to the key $1 mark this year due to tariff uncertainties.

The yen hovered near the key 160 per dollar mark that led to Tokyo intervening in the market last July, after it touched a near six-month low of 158.55 on Wednesday.

Though it strengthened a bit on the day and was last at 158.15 per dollar. That all left the dollar index, which measures the US currency against six other units, up 0.15% and at 109.18, just shy of the two-year high it touched last week.

Also in the mix were the Federal Reserve minutes of its December meeting, released on Wednesday, which showed the central bank flagged new inflation concerns and officials saw a rising risk the incoming administration's plans may slow economic growth and raise unemployment.

With US markets closed on Thursday, the spotlight will be on Friday's payrolls report as investors parse through data to gauge when the Fed will next cut rates.