Saudi Arabia Says it is a ‘Critical’ Moment to Tackle Land Degradation, Drought

Saudi Arabia will assume the next UNCCD Presidency
Saudi Arabia will assume the next UNCCD Presidency
TT

Saudi Arabia Says it is a ‘Critical’ Moment to Tackle Land Degradation, Drought

Saudi Arabia will assume the next UNCCD Presidency
Saudi Arabia will assume the next UNCCD Presidency

With less than one month until the sixteenth session of the Conference of Parties (COP16) of the UN Convention to Combat Desertification (UNCCD) starts in Riyadh, Saudi Arabia, which will assume the next UNCCD Presidency, has called on the international community to deliver robust action on drought resilience and land restoration.
The appeal comes as data highlights the urgency of the crisis, with an area of land larger than Ireland, more than 71,000 square kilometers, expected to be degraded in the world before the conference begins on December 2, according to UNCCD data.
“COP16 in Riyadh is a critical moment for the international community to address land degradation if we are to meet the UNCCD target of restoring 1.5 billion hectares of land by 2030,” said Saudi Deputy Minister for Environment at the Ministry of Environment, Water and Agriculture and Advisor to the COP16 Presidency Dr. Osama Faqeeha.
“As the hosts, we are calling on all parties to come to Riyadh ready to increase their ambition by strengthening land restoration targets, bolstering drought resilience initiatives, and enhancing land tenure rights.”
Countries have been adopting voluntary Land Degradation Neutrality (LDN) targets since 2015, in line with UN Sustainable Development Goals. Currently, over 130 countries have participated in the LDN Target Setting Program, with more than 100 having already chosen their targets.
Saudi Arabia’s incoming UNCCD Presidency will be an occasion to seek to increase the number of countries signed up to LDN targets, and strengthen their ambition and implementation.
UNCCD estimates that $44 trillion of economic output – more than half of global annual GDP – is moderately or highly reliant on natural capital. Meanwhile, every dollar invested in restoration could yield up to $30 in economic returns, unlocking a potential trillion-dollar restoration economy.
To help overcome challenges, COP16 in Riyadh will be the first UNCCD COP to feature a Green Zone. The Green Zone will provide a platform for businesses, scientists, financial institutions, NGOs, the public, and impacted communities to collaborate on finding lasting solutions.
Seven thematic days will be held during the conference to help hone dialogue and outcomes, with topics including land restoration, governance, agri-food systems, resilience, finance and science, technology and innovation.



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.