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Saudi Arabia to Finalize Integrated Strategy for Energy Sector

Saudi Energy Minister Prince Abdulaziz bin Salman and NEOM CEO Nadhmi Al-Nasr during the signing ceremony in Riyadh on Sunday. (SPA)
Saudi Energy Minister Prince Abdulaziz bin Salman and NEOM CEO Nadhmi Al-Nasr during the signing ceremony in Riyadh on Sunday. (SPA)
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Saudi Arabia to Finalize Integrated Strategy for Energy Sector

Saudi Energy Minister Prince Abdulaziz bin Salman and NEOM CEO Nadhmi Al-Nasr during the signing ceremony in Riyadh on Sunday. (SPA)
Saudi Energy Minister Prince Abdulaziz bin Salman and NEOM CEO Nadhmi Al-Nasr during the signing ceremony in Riyadh on Sunday. (SPA)

The Saudi Ministry of Energy and NEOM signed on Sunday a memorandum of cooperation that constitutes the Saudi road map for the implementation of future energy goals as the Kingdom prepares to complete an integrated energy sector strategy by the end of 2020.

In a ceremony in Riyadh, Energy Minister Prince Abdulaziz bin Salman and NEOM CEO Nadhmi Al-Nasr signed the MoU that focuses particularly on renewable energy and includes increased cooperation in green hydrogen production, application of a circular carbon economy, enhanced local content, innovation and development, and the application of artificial intelligence in the energy sector.

The minister emphasized that the areas of cooperation embodied the Kingdom’s strategies and directions towards an increased reliance on renewable resources, such as solar and wind energy, to generate electricity, in addition to NEOM’s contribution to the production of hydrogen in order to achieve energy sustainability while preserving the environment and opening the way for exports.

“We have to persevere and make all our capacities available to realize this project,” he told a press conference at the ceremony.

He added that NEOM was part of Saudi Vision 2030, which aims to attract foreign investment and generate jobs to reduce the Kingdom’s dependence on oil.

Energy mix
According to the MoU, areas of cooperation between the Ministry of Energy and NEOM will include shaping the energy mix to produce electricity; supporting renewable energy projects; benefiting from the Saudi Energy Efficiency Center’s (SEEC) programs; promoting electrical grid projects and their infrastructure; and applying rules of the national program for local content in the energy sector.

“The Ministry of Energy will supervise the implementation of renewable energy projects within the NEOM project, which target the production of 15 gigawatts of electricity by 2030, in addition to carrying out all preparatory work, such as assessing and measuring renewable energy sources at the selected sites and evaluating the electric transmission network,” the minister explained.

He added that the Ministry of Energy would prepare all the necessary documents for launching renewable energy projects in NEOM, with the aim to attract leading local and international companies.

In this regard, Prince Abdulaziz noted that NEOM was characterized by an excellent geographical location and ideal climate conditions, which will facilitate the production of electricity from renewable energy and contribute to reducing the cost of hydrogen production.

The MoU will also cover cooperation in the programs of the SEEC, including exchange of experiences in the field of energy efficiency and rationalization of consumption, as well as the adoption of energy efficiency standards to be used in NEOM’s buildings and facilities.

Artificial intelligence
Prince Abdulaziz affirmed that the agreement also sought the development and activation of artificial intelligence technologies, in its various forms, in order to better serve the business of generating and supplying energy and contribute to the development of a smart electricity network, through which energy is generated from various sources and distributed at a lower cost and higher efficiency.

He added that cooperation between the two sides also aimed to support and strengthen power network projects, including the design, construction and operation works in the Amala project, the hydrogen production plan, the electrical interconnection between Saudi Arabia and Egypt, in addition to studying the regulatory framework for electricity generation and cogeneration activities.

Local content
Addressing the press conference, Prince Abdulaziz talked about the National Program for Local Content in the Energy Sector, which he said sought to enhance and sustain local content in the energy business within NEOM.

According to the minister, the two sides will cooperate on the Hydrocarbon Demand Sustainability Program, focusing on raising the environmental and economic efficiency of these materials, in addition to promoting the use of blue and green hydrogen gas, which enhances the sustainability of oil demand.

Circular economy
The agreement also addressed the implementation of the circular carbon economy strategy, which, according to Prince Abdulaziz, relies on reducing emissions, reusing carbon, and using carbon as a feedstock for other products and finally decarbonizing. Relying on blue and green hydrogen represents one of the important initiatives under the circular carbon economy strategy.

Integrated energy strategy
In addition to being the largest oil exporter in the world, Saudi Arabia aspires to become one of the main countries in the production and export of renewable energy, according to the minister. This, of course, includes the production and export of hydrogen, he stated.

In this context, the NEOM’s new hydrogen project is a first step towards establishing an economically important activity within the Kingdom, which will contribute to enhancing growth, economic diversification and reducing greenhouse gas emissions.

NEOM projects
For his part, NEOM CEO Al-Nasr emphasized the importance of the memorandum as it will reinforce and support NEOM’s plans to be the world leader in the full reliance on renewable energy. He stressed that the city would rely totally on renewable power, including solar, wind and hydrogen produced from renewable energy sources.

“Facing climate change requires more efforts and cooperation in the field of a circular carbon economy, to reduce emissions and make optimal use of carbon in the economic life cycle, including the great role of hydrogen in this context,” he said.

The Ministry of Energy’s cooperation activities with NEOM included coordination to study and support the strengthening of electrical grid projects and its infrastructure, as part of NEOM’s endeavor to build an advanced and modern electricity transmission network to link renewable energy sources in the company’s business area, cooperation in the field of smart grids and customer service.

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Canada to Impose Retaliatory Across a Raft of US Sectors, Carney Says

Prime Minister Mark Carney speaks about Canada's response to new US tariffs during a news conference on Parliament Hill in Ottawa on Saturday, Aug. 22, 2026. (Patrick Doyle/The Canadian Press via AP)
Prime Minister Mark Carney speaks about Canada's response to new US tariffs during a news conference on Parliament Hill in Ottawa on Saturday, Aug. 22, 2026. (Patrick Doyle/The Canadian Press via AP)
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Canada to Impose Retaliatory Across a Raft of US Sectors, Carney Says

Prime Minister Mark Carney speaks about Canada's response to new US tariffs during a news conference on Parliament Hill in Ottawa on Saturday, Aug. 22, 2026. (Patrick Doyle/The Canadian Press via AP)
Prime Minister Mark Carney speaks about Canada's response to new US tariffs during a news conference on Parliament Hill in Ottawa on Saturday, Aug. 22, 2026. (Patrick Doyle/The Canadian Press via AP)

Canada's Prime Minister Mark Carney said on Saturday that starting September 8 Canada would impose tariffs on imports from the United States across a raft of sectors in retaliation for President Donald Trump's new 50% tariffs that came into effect from midnight.

After days of intense negotiations, the two countries failed to reach a ‌trade deal late ‌Friday, worsening an already ‌delicate relationship ⁠between the two ⁠long-term trade partners and allies and complicating the future of a highly successful continental free trade pact called the US-Mexico-Canada agreement.

Trump's new tariffs hit a slew of sectors including furniture, dairy products, cement, clothing, fishing ⁠rods, hockey equipment and cover some $20 billion ‌of Canadian exports south ‌of the border.

These duties do not ‌give exemption to Canadian products under the USMCA, ‌which have shielded most of Canadian exports to the USin the last 18 months.

"Canada will match Washington’s new tariffs dollar for dollar ‌in order to protect Canadian workers, farmers, families, and businesses," Carney said at ⁠a ⁠news conference.

These retaliatory tariffs will hit sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics and will also include products currently subject to the unjustified Section 232 and 338 tariffs, Carney said in a spirited speech from the Parliament building in Ottawa.

"We cannot accept what they have offered, and we will not give what they have asked," Carney said.

Business

Brazil’s Lula Urges Tariffs Resolution in Call with Trump

Brazil's President Luiz Inacio Lula da Silva speaks during a campaign rally at Praca da Estacao in Belo Horizonte, Minas Gerais state, Brazil on August 21, 2026. (AFP)
Brazil's President Luiz Inacio Lula da Silva speaks during a campaign rally at Praca da Estacao in Belo Horizonte, Minas Gerais state, Brazil on August 21, 2026. (AFP)
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Brazil’s Lula Urges Tariffs Resolution in Call with Trump

Brazil's President Luiz Inacio Lula da Silva speaks during a campaign rally at Praca da Estacao in Belo Horizonte, Minas Gerais state, Brazil on August 21, 2026. (AFP)
Brazil's President Luiz Inacio Lula da Silva speaks during a campaign rally at Praca da Estacao in Belo Horizonte, Minas Gerais state, Brazil on August 21, 2026. (AFP)

Brazilian President Luiz Inacio Lula da Silva urged US counterpart Donald Trump in a phone call Friday to resolve their countries' trade dispute, saying US tariffs were imposed on "baseless" grounds.

Washington imposed two new sets of tariffs on the Latin American giant in July, a move that has become a key campaign issue ahead of Brazil's presidential election in October.

Lula -- seeking a fourth and final term -- told Trump that the tariffs "negatively affect both Brazil and the United States," according to a statement from his office.

"To remain at the negotiating table is the best option for both countries," he said.

Relations between Trump and the leftist Lula have blown hot and cold in recent months, but diplomatic tensions have flared as the election approaches.

Trump has backed several victorious right-wing candidates in recent Latin American elections. He is an ally of Brazil's jailed far-right former president Jair Bolsonaro, whose son Flavio is Lula's main election rival.

The Brazilian presidency statement said the conversation between Trump and Lula lasted an hour and 20 minutes and "took place in a friendly and cordial tone."

During a campaign event in the southeastern state of Minas Gerais, Lula said Trump asked Commerce Secretary Howard Lutnick to contact his Brazilian counterpart Marcio Elias Rosa "and they already scheduled a meeting."

He added that Trump acknowledged during their call that the tariffs on Brazil are "based on a lie."

Lula, who like Trump is 80, has made national sovereignty a key theme of his campaign.

In an interview last week, he warned Trump: "Don't meddle in Brazil's affairs, especially regarding the election. If you do meddle, you'll lose."

"I said, 'Hey Trump, if you want to fight organized crime, let's fight organized crime,'" Lula told the crowd in Minas Gerais. "We want to work together. What we don't want is interference in Brazil."

- 'Daily terror'-

The two leaders have often appeared to get on well one-on-one, with Trump last year hailing an "excellent chemistry" with Lula.

The US last year dropped punitive tariffs it imposed over the trial against Jair Bolsonaro, which Trump labelled a "witch hunt," after diplomatic efforts by Lula's government.

However, Lula then suffered a blow after a May visit to the White House by Flavio Bolsonaro.

Two days later, the US designated Brazil's two largest drug cartels as terrorist organizations, which Flavio has said was a personal request.

"These criminal groups inflict daily terror on the most vulnerable populations, but they are not the same as terrorist organizations," Lula told Trump.

Security is the main concern of Brazilians heading into this year's elections, polls have shown.

Flavio Bolsonaro is pushing for a tough-on-crime model like that of El Salvador's President Nayib Bukele, whose sweeping crackdown on gangs and mass detentions have drawn controversy.

- Deforestation and PIX -

The United States imposed a 25-percent tariff on a range of Brazilian goods over policies it argued harm US commerce, such as deforestation and a free electronic payments system known as PIX.

Brazilian data shows deforestation in the Amazon fell last year to its lowest point since 2016.

Brazil was also impacted under a separate global tariff regime against US trading partners accused of using forced labor.

Lula has repeatedly said he believes it was US Secretary of State Marco Rubio and not Trump who was behind the tariffs against Brazil.

"Trump is the best of the lot, and the one who talks most seriously with me," he said last week.

Business

Arctic Shipping a Daunting Prospect in Hotly Contested Region

This handout photo taken and released on August 15, 2026 by the Ningbo Zhoushan Port Group shows the "Dubai Tower" container ship, operated by Chinese shipowner Sea Legend, setting sail from the port of Ningbo headed to the port of Felixstow, England. (Handout / Ningbo Zhoushan Port Group / AFP)
This handout photo taken and released on August 15, 2026 by the Ningbo Zhoushan Port Group shows the "Dubai Tower" container ship, operated by Chinese shipowner Sea Legend, setting sail from the port of Ningbo headed to the port of Felixstow, England. (Handout / Ningbo Zhoushan Port Group / AFP)
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Arctic Shipping a Daunting Prospect in Hotly Contested Region

This handout photo taken and released on August 15, 2026 by the Ningbo Zhoushan Port Group shows the "Dubai Tower" container ship, operated by Chinese shipowner Sea Legend, setting sail from the port of Ningbo headed to the port of Felixstow, England. (Handout / Ningbo Zhoushan Port Group / AFP)
This handout photo taken and released on August 15, 2026 by the Ningbo Zhoushan Port Group shows the "Dubai Tower" container ship, operated by Chinese shipowner Sea Legend, setting sail from the port of Ningbo headed to the port of Felixstow, England. (Handout / Ningbo Zhoushan Port Group / AFP)

With Middle East turmoil slashing Suez Canal traffic, shipping firms are tempted to try the Arctic for quicker trips between Europe and Asia -- but commercial prospects are unlikely to match countries' strategic ambitions for the North Pole.

Container ships from China and South Korea aim to transit the Northern Sea Route in Russian territorial waters in the coming weeks, testing its viability as climate change keeps the passage free of ice longer each year.

Industry experts remain skeptical, saying that even if more vessels start going through, the bulk of global shipping will remain along established lines for the foreseeable future.

- Shorter, cheaper, harder -

Houthi militants in Yemen have disrupted traffic through the Bab el-Mandeb Strait by attacking vessels heading to and from the Suez Canal.

Many operators now avoid the passage and send ships instead around South Africa's Cape of Good Hope, vastly prolonging the journey between Asia and Europe and driving up fuel costs and emissions.

By contrast, the Northern Sea Route (NSR) could cut the distance by 30 to 40 percent compared to using the Suez Canal, and by nearly half from going around the southern tip of Africa, the credit insurance group Coface said in April.

But what looks good on spreadsheets ignores daunting constraints.

"The Arctic link can only be seasonal, from August to October," said Paul Tourret, director of the Higher Institute of Maritime Economics (ISEMAR) in Saint-Nazaire, France.

"And you need ice-class ships, which cost more," he told AFP.

That rules out Supramax and other hulking container ships that make up a major share of global traffic, since they can offer hugely competitive rates.

By contrast, the capacity of the Chinese container ship "Dubai Tower" that embarked on the NSR from Ningbo to Europe this month, is one-tenth the size, said Jerome de Ricqles, a sea freight specialist at Upply, a French-based transport management firm.

- Real but limited potential -

Most container ships using the NSR need to be escorted by Russia's fleet of nuclear-powered icebreakers.

Last year, a record 23 vessels made the passage, up from 15 in 2024, according to a recent study by insurance group Allianz Commercial.

That's fewer than the number using the Suez Canal each day.

Even with conflicts in the Middle East, some 35 ships a day transited the Egyptian canal in the first half of this year, down from more than 50 a day before the Houthis started their attacks in 2023.

The northern route is "a temporary and minuscule solution with regards to the overall needs", De Ricqles said.

According to Coface, just 3.5 percent of the current traffic between East Asia, northern Europe and North America could actually shift to Arctic routes.

Looking out to 2030, viability "remains extremely limited and mainly only concerns raw materials", Eve Barre, an economist who piloted the Coface study, said in a statement.

Even so, the NSR could attract bulk liquid vessels carrying oil and liquefied natural gas, who could see their costs slashed by 45 to 50 percent in some cases, the study found.

Dry bulk ships might also start using it, especially if they can operate with icebreaker escorts.

But the prospect also carries environmental risks if increased traffic accelerates Arctic melting, with soot emissions that settle on the ice cap trapping heat from sunlight.

Fuel spills are also a concern, and several big Western shipping firms including France's CMA-CGM, Switzerland's MSC and Germany's Hapag-Lloyd have already pledged they will not use the Northern Sea Route.

All in all, the route "isn't likely to upend the major balances of global trade", Barre said, noting that the interest in Arctic shipping "is less commercial than political" at a time of tense rivalries between Russia, China and the United States.

Tourret at the French marine institute agreed, calling the trips by the Chinese and South Korean vessels a sideshow.

"One swallow does not a summer make, and one Chinese container ship doesn't create a Polar Silk Road," he said, referring to Beijing's Belt and Road Initiative aiming to knit together a trading network between Asia, Europe and Africa.