World Bank: Arab, African Countries Among 'Best' in Developing Renewable Energy

World Bank: Arab, African Countries Among 'Best' in Developing Renewable Energy
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World Bank: Arab, African Countries Among 'Best' in Developing Renewable Energy

World Bank: Arab, African Countries Among 'Best' in Developing Renewable Energy

The World Bank has recently released a report, titled Regulatory Indicators for Sustainable Energy (RISE) 2018, in which it warned that the world, as a whole, is only about half way towards the adoption of advanced policy frameworks for sustainable energy.

This puts at risk the achievement of Sustainable Development Goal on Energy (SDG7) by 2030 and hinders progress towards the goal of keeping the rise in global temperatures to well below two degrees.

It follows the previous methodology of classifying countries into a green zone of strong performers in the top third, a yellow zone of middling performers, and a red zone of weaker performers in the bottom third.

The latest edition of RISE found that in the last decade the number of countries with strong policy frameworks for sustainable energy has more than tripled since 2010, with a dramatic increase in the uptake of renewable energy and energy efficiency targets.

It showed that from 2010 till 2017, the number of countries with strong policy frameworks for sustainable energy more than tripled from 17 to 59.

Strong performance in renewable energy policies has been distributed across all regions of the world and among different income groups.

The report said that the five countries that made the most progress in their policies in recent years and are from outside the Organization for Economic Cooperation and Development (OECD) including: the Ivory Coast, UAE, Rwanda, Jordan and Egypt. It also found that the world has seen a huge uptake in sustainable energy policies.

According to the report, it was noted that when the government is concerned with energy policies progress is achieved quickly.

Among the 133 countries in the index, countries where governments are concerned with sustainable energy sources made progress in RISE indicator by more than four percentage points, twice the average of the annual global growth rate.

Countries that have increased their electricity access rates the most since 2010 have also shown a concurrent improvement in electricity access policies. In countries with an electricity access deficit, policymakers are increasingly turning their attention to off-grid solutions to close the gap, the report explained.

This is illustrated by the soaring share of low-access countries adopting measures to support mini-grids and solar home systems from around 15 percent in 2010 to 70 percent in 2017.

In countries that have made progress on sustainable policies, the deteriorating fiscal position of national utilities is putting progress at risk.

Among countries with low access to energy, the number of utilities meeting basic creditworthiness criteria dropped from 63 percent in 2012 to 37 percent in 2016, the report said.



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.