Climate Week in Riyadh Introduces Solutions, Ideas for COP28

Prince Abdulaziz bin Salman addresses the opening of Climate Week in Riyadh. (Asharq Al-Awsat)
Prince Abdulaziz bin Salman addresses the opening of Climate Week in Riyadh. (Asharq Al-Awsat)
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Climate Week in Riyadh Introduces Solutions, Ideas for COP28

Prince Abdulaziz bin Salman addresses the opening of Climate Week in Riyadh. (Asharq Al-Awsat)
Prince Abdulaziz bin Salman addresses the opening of Climate Week in Riyadh. (Asharq Al-Awsat)

The Middle East and North Africa Climate Week 2023 concluded on Thursday in Riyadh, with successful discussions and ideas that pave the way for solutions for the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28), which will be held late next month in Dubai.

The international event witnessed the largest attendance ever at the regional climate weeks held by the United Nations globally, with the participation of more than 9,000 people of 137 different nationalities, who were present at more than 240 dialogue sessions.

With the conclusion of the conference, Saudi Arabia affirmed its readiness to maintain the momentum and promote comprehensive climate action.

Saudi Minister of Energy Prince Abdulaziz bin Salman inaugurated the event on Sunday, presenting an overview of the progress achieved in the region and in Saudi Arabia in particular.

The Climate Week saw the announcement of comprehensive programs and offered a platform for sharing ideas and solutions related to climate action. In this context, three important initiatives were announced, all of which seek to advance global climate goals.

Those include a market mechanism to compensate and balance greenhouse gases (carbon equivalents) in the Kingdom, a roadmap for the Saudi Green Initiative goal of planting 10 billion trees, in addition to an initiative entitled, “Empowering Africa”, based on the Clean Cooking Solutions Initiative.

Six memorandums of understanding were concluded during the event, including an agreement between Saudi Arabia and India in the field of electrical connectivity, clean green hydrogen and supply chains, and a memorandum between the Ministerial Forum for Clean Energy and the King Abdullah Center for Petroleum Studies and Research (KAPSARC) to promote sustainable energy development at the regional and global levels.

KAPSARC held a high-level workshop in partnership with the World Energy Forum, which addressed the contribution of clean hydrogen and carbon capture, use and storage projects in achieving climate goals in the Middle East and North Africa region, with the participation of an elite group of experts in energy, climate and sustainability, and officials in the government and private sectors.

The discussions touched on hydrogen strategies in the region and their promising role in project development, and highlighted the importance of technology and supply chains in providing low-carbon energy solutions.



Israel Central Bank Holds Rates

The Bank of Israel building in Jerusalem. Reuters
The Bank of Israel building in Jerusalem. Reuters
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Israel Central Bank Holds Rates

The Bank of Israel building in Jerusalem. Reuters
The Bank of Israel building in Jerusalem. Reuters

The Bank of Israel kept interest rates unchanged on Wednesday for a sixth straight meeting, but raised the prospect of future rate increases should armed conflict on two fronts push inflation up more than expected.
The central bank - also worried about Israel's investor risk premium which has risen since the Gaza war began on Oct. 7 last year - left its benchmark rate at 4.50%.
"In view of the continuing war, the Monetary Committee’s policy is focusing on stabilizing the markets and reducing uncertainty, alongside price stability and supporting economic activity," the central bank said in a statement.
Policymakers expressed worries over rising inflation stemming largely from supply constraints related to the war with Hamas in Gaza and accelerating fighting with Hezbollah in Lebanon, saying the increase in the pace of inflation is broad, Reuters reported.
Israel's annual inflation rate rose to 3.6% in August from 3.2% in the previous month, moving further above the government's 1%-3% target range after falling as low as 2.5% in February.
Bank of Israel Governor Amir Yaron told a news conference after the decision that the future direction of interest rates was "data dependent.”
Prior to the war, rates - which rose rapidly in 2022 and 2023 - were expected to decline this year. The central bank had reduced its key rate by 25 basis points in January but it has been on hold since due to the war, rising inflation pressures, a widening budget deficit and the higher risk premium.
Some investors have begun to speculate that inflation will continue to rise and possibly push the central bank to raising rates again.
"If inflation rises at a faster rate than we predicted ... we can definitely raise the interest rate," Yaron said, noting the inflation rate is expected to gain in near term.
Yaron said the current level of rates is believed to be restrictive enough to ultimately bring inflation back to within its target.
He added that in the current period Israel's uncertainty is far greater than what the US and European central banks - which have started to loosen policy - are experiencing.
The decision to hold rates steady came despite the bank's research department slashing its forecast for Israeli economic growth this year to 0.5% from a previous estimate of 1.5%.
The economy grew an annualized 0.7% in the second quarter, slowing markedly from a 17.2% pace in the first quarter.
All 14 analysts polled by Reuters had expected no rates move on Wednesday.
The central bank's researchers raised their inflation forecast for the coming year to 3.2% from 3.0%, while the interest rate is projected at its current 4.5% level, rather than 4.25% predicted in July.
The staff raised their expectation for Israel's 2024 budget deficit to 7.2% of gross domestic product from 6.6% due to the extra funds needed to finance the military conflicts. They see a 4.9% of GDP deficit in 2025.
"Approval of a responsible budget for 2025 is an essential component in strengthening the international markets’ trust and maintaining the economy’s robustness," Yaron said.
The budget's passage has been delayed due to political infighting.
The rates decision was initially slated for Monday but was moved to not coincide with the Oct. 7 anniversary of the start of the Gaza war.