Germany Urges China to Find Alternative to Coal

German vice-chancellor and Economy Minister Robert Habeck during his visit to carmaker BMW's research and development center in Shanghai, China, on June 23. (Reuters) 
German vice-chancellor and Economy Minister Robert Habeck during his visit to carmaker BMW's research and development center in Shanghai, China, on June 23. (Reuters) 
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Germany Urges China to Find Alternative to Coal

German vice-chancellor and Economy Minister Robert Habeck during his visit to carmaker BMW's research and development center in Shanghai, China, on June 23. (Reuters) 
German vice-chancellor and Economy Minister Robert Habeck during his visit to carmaker BMW's research and development center in Shanghai, China, on June 23. (Reuters) 

German Economy Minister Robert Habeck said on Sunday that two Chinese officials he met in Beijing told him that China was expanding coal production for security reasons.

The Minister then said Beijing must find a safe alternative to coal.

“China is indispensable to achieving global climate goals and must find a safe alternative to coal, which accounted for nearly 60% of China's electricity supply in 2023,” Habeck said at the end of a four-day visit to East Asia.

Officials told Habeck that China was expanding coal production for security reasons, the minister told reporters in the southern city of Hangzhou, the day after meeting Chinese officials in Beijing.

“China also imports large amounts of gas and oil and China has already seen what has happened in Europe and Germany in the last two years,” he added, referring to the energy crisis triggered by Russia's full-scale invasion of Ukraine.

He said cooperation with China must be strengthened, adding: “Without China it would not be possible to meet the climate targets globally.”

“You don't have to teach them that CO2 emissions are bad for the climate. They've got that,” Habeck said, adding that it should be possible to achieve the same level of security with fewer coal-fired power plants.

Later, Habeck told students at the university of Zhejiang that the difficulty lay in integrating variable forms of energy such as wind and solar into a system built to work on more predictable fuels, adding: “That is basically my work.”

He said that doubling capacities was "the old way" of doing it, but not the most efficient.

Habeck said extension of the power grid and use of batteries to store energy could reduce the number of traditionally fueled power plants needed to meet China's needs, adding that economic growth and climate action were not opposites.

“Transforming the economy to a climate-neutral one is not only good for the climate but creates new opportunities for wealth and growth,” he added.

Other issues seem to overshadow curbing global warming at the moment, but it is a key challenge, so strengthening cooperation with China in this area is necessary, the minister said.

During Habeck’s visit to China on June 22, Chinese and EU officials said they agreed to start talks on the proposed imposition of tariffs on Chinese-made electric vehicles being imported into the European market.



New Saudi System to Sustain Insurance Funds, Enhance Job Market Efficiency

Part of the job fair at the Chamber of Commerce in the Eastern Province, Saudi Arabia (Asharq Al-Awsat)
Part of the job fair at the Chamber of Commerce in the Eastern Province, Saudi Arabia (Asharq Al-Awsat)
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New Saudi System to Sustain Insurance Funds, Enhance Job Market Efficiency

Part of the job fair at the Chamber of Commerce in the Eastern Province, Saudi Arabia (Asharq Al-Awsat)
Part of the job fair at the Chamber of Commerce in the Eastern Province, Saudi Arabia (Asharq Al-Awsat)

Saudi Arabia’s Cabinet, led by Crown Prince and Prime Minister Mohammed bin Salman, approved a new social insurance system for new workers during its session on Tuesday.
This move aims to boost labor market efficiency, ensure the sustainability of insurance funds, and support local talent stability. The Kingdom is gearing up for large-scale economic projects that require ongoing updates to meet national goals.
The government aims for a sustainable and fair retirement system, improving laws and regulations.
Minister of Economy and Planning Faisal Al-Ibrahim previously highlighted Saudi Arabia’s proactive approach to managing rising workforce rates and their retirement implications.
Minister of Human Resources and Social Development Ahmed Al-Rajhi affirmed that the Cabinet’s decision enhances retirement system efficiency and provides insurance protection for participants and their families, adapting to labor market changes.
Finance Minister Mohammed Al-Jadaan stressed the decision's goal to secure insurance coverage for participants while ensuring the sustainability of insurance funds and protecting beneficiaries' rights, thereby promoting economic and social stability.
Moreover, the Cabinet has decided to maintain current provisions of the civil retirement and social insurance systems for current participants, excluding those nearing retirement age and specific groups qualifying for pensions.
The General Organization for Social Insurance clarified that the new system applies only to newly employed civilians in both public and private sectors without prior contributions to either retirement or current social insurance systems.
Existing participants will continue under current rules, except for changes related to retirement age and qualifying periods for pensions for those with less than 20 years of contributions and under 50 lunar years old at the time of the amendments.
The retirement age for covered groups will gradually increase from 58 to 65 years, starting 4 months beyond the current retirement age, based on the participant's age when the amendments take effect.
The current retirement and insurance systems will remain unchanged for participants aged 50 and above or with 20 or more years of contributions at the time of the amendments.
For new labor market entrants, the new system facilitates job mobility between public and private sectors, with contribution rates gradually increasing by 0.5% annually over 4 years, starting from the second year.