Saudi Arabia Highlights Energy Security for Economic Growth and Sustainability at COP29

Visitors at Saudi Arabia's pavilion during the UN Climate Change Conference COP29 (EPA)
Visitors at Saudi Arabia's pavilion during the UN Climate Change Conference COP29 (EPA)
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Saudi Arabia Highlights Energy Security for Economic Growth and Sustainability at COP29

Visitors at Saudi Arabia's pavilion during the UN Climate Change Conference COP29 (EPA)
Visitors at Saudi Arabia's pavilion during the UN Climate Change Conference COP29 (EPA)

Saudi Arabia's participation in COP29 reflects its commitment to tackling climate change. The Kingdom is focusing on reducing emissions through a variety of technologies as part of its practical approach.

The Saudi Ministry of Energy says this effort is part of its broader environmental initiatives, such as the “Saudi Green Initiative” and the “Middle East Green Initiative.”

These programs aim to cut emissions, boost renewable energy use, and expand green spaces, supporting the sustainable development goals of Saudi Arabia’s Vision 2030.

Prince Abdulaziz bin Salman, Saudi Arabia's Energy Minister, is leading the country’s delegation at COP29 in Baku, Azerbaijan, which runs until November 22, 2024.

Saudi Arabia’s approach focuses on policies that balance the historical responsibility for emissions with the right to sustainable development.

At COP29, the Kingdom highlighted the importance of energy security for economic growth and sustainability and called for clean energy investments that include both renewable and traditional resources, while respecting countries' rights to use their natural resources.

A coalition of leaders from industrialized nations and those most affected by climate change has called for more funding to address the crisis.

In a statement, the leaders warned that the climate crisis will worsen without immediate action, urging developed nations to continue leading and meeting their financial commitments.

They also called for new sources of funding. The appeal is backed by countries including Germany, France, Spain, Canada, and several island and African nations.

At COP29, delegates welcomed pledges from major development banks to increase funding for low- and middle-income countries facing the impacts of climate change, giving an early boost to the two-week summit.

On Tuesday, a group of banks, including the World Bank, set a shared goal of raising climate financing to $120 billion by 2030, a nearly 60% increase from the 2023 target.

Irish Climate Minister Eamon Ryan emphasized to Reuters that both countries and businesses must contribute.

Chinese Vice Premier Ding Xuexiang said China had already mobilized around $24.5 billion to help developing countries address climate change.

The main goal of the conference in Azerbaijan is to secure a global climate financing deal, potentially providing trillions of dollars for climate projects.

Developing nations are seeking strong commitments from wealthy industrialized nations, which have historically been the largest contributors to global warming.

In 2009, wealthy nations pledged $100 billion annually to help developing countries shift to clean energy and adapt to a warming world, but this pledge was only partially met in 2022 and expires this year.

With 2024 predicted to be the hottest year on record, scientists warn that the impacts of global warming are happening faster than expected.



ECB's Lagarde Renews Integration Call as Trade War Looms

FILE PHOTO: European Central Bank President Christine Lagarde and Governor of the Bank of Finland Olli Rehn arrive at the non-monetary policy meeting of the ECB's Governing Council in Inari, Finnish Lapland, Finland February 22, 2023. Lehtikuva/Tarmo Lehtosalo via REUTERS//File Photo
FILE PHOTO: European Central Bank President Christine Lagarde and Governor of the Bank of Finland Olli Rehn arrive at the non-monetary policy meeting of the ECB's Governing Council in Inari, Finnish Lapland, Finland February 22, 2023. Lehtikuva/Tarmo Lehtosalo via REUTERS//File Photo
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ECB's Lagarde Renews Integration Call as Trade War Looms

FILE PHOTO: European Central Bank President Christine Lagarde and Governor of the Bank of Finland Olli Rehn arrive at the non-monetary policy meeting of the ECB's Governing Council in Inari, Finnish Lapland, Finland February 22, 2023. Lehtikuva/Tarmo Lehtosalo via REUTERS//File Photo
FILE PHOTO: European Central Bank President Christine Lagarde and Governor of the Bank of Finland Olli Rehn arrive at the non-monetary policy meeting of the ECB's Governing Council in Inari, Finnish Lapland, Finland February 22, 2023. Lehtikuva/Tarmo Lehtosalo via REUTERS//File Photo

European Central Bank President Christine Lagarde renewed her call for economic integration across Europe on Friday, arguing that intensifying global trade tensions and a growing technology gap with the United States create fresh urgency for action.
US President-elect Donald Trump has promised to impose tariffs on most if not all imports and said Europe would pay a heavy price for having run a large trade surplus with the US for decades.
"The geopolitical environment has also become less favorable, with growing threats to free trade from all corners of the world," Lagarde said in a speech, without directly referring to Trump.
"The urgency to integrate our capital markets has risen."
While Europe has made some progress, EU members tend to water down most proposals to protect vested national interests to the detriment of the bloc as a whole, Reuters quoted Lagarde as saying.
But this is taking hundreds of billions if not trillions of euros out of the economy as households are holding 11.5 trillion euros in cash and deposits, and much of this is not making its way to the firms that need the funding.
"If EU households were to align their deposit-to-financial assets ratio with that of US households, a stock of up to 8 trillion euros could be redirected into long-term, market-based investments – or a flow of around 350 billion euros annually," Lagarde said.
When the cash actually enters the capital market, it often stays within national borders or leaves for the US in hope of better returns, Lagarde added.
Europe therefore needs to reduce the cost of investing in capital markets and must make the regulatory regime easier for cash to flow to places where it is needed the most.
A solution might be to create an EU-wide regulatory regime on top of the 27 national rules and certain issuers could then opt into this framework.
"To bypass the cumbersome process of regulatory harmonization, we could envisage a 28th regime for issuers of securities," Lagarde said. "They would benefit from a unified corporate and securities law, facilitating cross-border placement, holding and settlement."
Still, that would not solve the problem that few innovative companies set up shop in Europe, partly due to the lack of funding. So Europe must make it easier for investment to flow into venture capital and for banks to fund startups, she said.