Abdulaziz bin Salman: Energy Security Essential to Growth, Facing Climate Challenges

Saudi Energy Minister Prince Abdulaziz bin Salman during his participation on Wednesday in the LEAP Conference (Photo: Bashir Saleh)
Saudi Energy Minister Prince Abdulaziz bin Salman during his participation on Wednesday in the LEAP Conference (Photo: Bashir Saleh)
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Abdulaziz bin Salman: Energy Security Essential to Growth, Facing Climate Challenges

Saudi Energy Minister Prince Abdulaziz bin Salman during his participation on Wednesday in the LEAP Conference (Photo: Bashir Saleh)
Saudi Energy Minister Prince Abdulaziz bin Salman during his participation on Wednesday in the LEAP Conference (Photo: Bashir Saleh)

Saudi Energy Minister Prince Abdulaziz bin Salman said Wednesday that the Kingdom was committed to its pledges to reduce carbon emissions and address the climate crisis.

He emphasized that energy security constituted a necessary basis for the prosperity of the global economy, and for achieving a smooth transition to deal with climate challenges.

The Saudi minister’s remarks came during a panel discussion, held within the framework of the business sessions of the LEAP International Technology Conference in Riyadh. The discussion, entitled “Technology for the Energy Transition”, was moderated by Lord Stephen Carter, former British Minister for Communications and CEO of Informa PLC.

Prince Abdulaziz noted that energy sustainability and the use and development of adequate technologies would help the Kingdom reach zero-net emissions in 2060.

He pointed to the role of the Saudi youth in achieving climate goals, saying: “The real story of the Kingdom is the ambitious, determined, and hopeful young generation. Thanks to this generation, the word ‘impossible’ will never be in our dictionary.”

The Saudi Minister of Energy stressed the need to engage positively in the conservation and purification of energy, and to reduce emissions, noting that Crown Prince Mohammed bin Salman presented great initiatives, including the Saudi Green Initiative, which aims to achieve zero emissions in 2060.

“Within this commitment, we hosted this conference that brought together the world of technicians in Riyadh, and launched programs that work effectively to reduce emissions,” he stated.

“Thanks to our low-cost production, whether in oil, gas or renewable energy, we will certainly be the least expensive producers of hydrogen, and our perseverance saved us in the OPEC Plus agreement,” Prince Abdulaziz said, noting that his country’s interest in nuclear energy comes within the framework of providing energy services at a lower price to those living in remote areas of the Kingdom.



World Bank Warns that US Tariffs Could Reduce Global Growth Outlook

WASHINGTON, DC - JANUARY 16: Workers build risers in Freedom Plaza ahead of the Inauguration on January 16, 2025 in Washington, DC. US President-elect Donald Trump and Vice President-elect former Sen. JD Vance (R-OH) will be sworn in on January 20. Kayla Bartkowski/Getty Images/AFP
WASHINGTON, DC - JANUARY 16: Workers build risers in Freedom Plaza ahead of the Inauguration on January 16, 2025 in Washington, DC. US President-elect Donald Trump and Vice President-elect former Sen. JD Vance (R-OH) will be sworn in on January 20. Kayla Bartkowski/Getty Images/AFP
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World Bank Warns that US Tariffs Could Reduce Global Growth Outlook

WASHINGTON, DC - JANUARY 16: Workers build risers in Freedom Plaza ahead of the Inauguration on January 16, 2025 in Washington, DC. US President-elect Donald Trump and Vice President-elect former Sen. JD Vance (R-OH) will be sworn in on January 20. Kayla Bartkowski/Getty Images/AFP
WASHINGTON, DC - JANUARY 16: Workers build risers in Freedom Plaza ahead of the Inauguration on January 16, 2025 in Washington, DC. US President-elect Donald Trump and Vice President-elect former Sen. JD Vance (R-OH) will be sworn in on January 20. Kayla Bartkowski/Getty Images/AFP

The World Bank on Thursday warned that US across-the-board tariffs of 10% could reduce already lackluster global economic growth of 2.7% in 2025 by 0.3 percentage point if America's trading partners retaliate with tariffs of their own.
Such tariffs, promised by US President-elect Donald Trump, could cut US growth - forecast to reach 2.3% in 2025 - by 0.9% if retaliatory measures are imposed, the bank said, citing economic simulations. But it noted that US growth could also increase by 0.4 percentage point in 2026 if US tax cuts were extended, it said, with only small global spillovers.
Trump, who takes office Monday, has proposed a 10% tariff on global imports, a 25% punitive duty on imports from Canada and Mexico until they clamp down on drugs and migrants crossing borders into the US, and a 60% tariff on Chinese goods.
The World Bank's latest Global Economic Prospect report, issued twice yearly, forecast flat global economic growth of 2.7% in 2025 and 2026, the same as in 2024, and warned that developing economies now faced their weakest long-term growth outlook since 2000, Reuters said.
The multilateral development bank said foreign direct investment into developing economies was now about half the level seen in the early 2000s and global trade restrictions were five times higher than the 2010-2019 average.
It said growth in developing countries is expected to reach 4% in 2025 and 2026, well below pre-pandemic estimates due to high debt burdens, weak investment and sluggish productivity growth, along with rising costs of climate change.
Overall output in emerging markets and development economies was expected to remain more than 5% below its pre-pandemic trend by 2026, due to the pandemic and subsequent shocks, it said.
"The next 25 years will be a tougher slog for developing economies than the last 25," World Bank chief economist Indermit Gil said in a statement, urging countries to adopt domestic reforms to encourage investment and deepen trade relations.
Economic growth in developing countries dropped from nearly 6% in the 2000s to 5.1% in the 2010s and was averaging about 3.5% in the 2020s, the bank said.
It said the gap between rich and poor countries was also widening, with average per capita growth rates in developing countries, excluding China and India, averaging half a percentage point below those in wealth economies since 2014.
The somber outlook echoed comments made last week by the managing director of the International Monetary Fund, Kristalina Georgieva, ahead of the global lender's own new forecast, to be released on Friday.
"Over the next two years, developing economies could face serious headwinds," the World Bank report said.
"High global policy uncertainty could undercut investor confidence and constrain financing flows. Rising trade tensions could reduce global growth. Persistent inflation could delay expected cuts in interest rates."
The World Bank said it saw more downside risks for the global economy, citing a surge in trade-distorting measures implemented mainly by advanced economies and uncertainty about future policies that was dampening investment and growth.
Global trade in goods and services, which expanded by 2.7% in 2024, is expected to reach an average of about 3.1% in 2025-2026, but to remain below pre-pandemic averages.