Saudi Arabia Advances 10 Places in Green Future Index 2022

A view of the Asir region in southern Saudi Arabia, where the government is making intensive efforts to increase afforestation. (Asharq Al-Awsat)
A view of the Asir region in southern Saudi Arabia, where the government is making intensive efforts to increase afforestation. (Asharq Al-Awsat)
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Saudi Arabia Advances 10 Places in Green Future Index 2022

A view of the Asir region in southern Saudi Arabia, where the government is making intensive efforts to increase afforestation. (Asharq Al-Awsat)
A view of the Asir region in southern Saudi Arabia, where the government is making intensive efforts to increase afforestation. (Asharq Al-Awsat)

Environmental initiatives and programs, including the Green Saudi Arabia and the Green Middle East initiatives, as well as the carbon circular economy and energy transformations, have contributed to advancing Saudi Arabia’s ranking in the Green Future Index for 2022.

Issued by the MIT Technology Review of the Massachusetts Institute of Technology, the Index highlighted Saudi Arabia’s 10 place advancement, following leading programs and initiatives led by Crown Prince Mohammed bin Salman.

In a report, the Saudi Press Agency (SPA) noted that the Kingdom’s rapid progress in the Green Future Index crowns the efforts, programs, and initiatives, which include the Saudi and Middle East Green Initiatives (SGI & MGI) and the establishment of royal natural reserves to increase vegetation in the Kingdom.

The Green Future Index report showed that the Kingdom has moved up in the Carbon Emissions Pillar by 27 places, ranking 19th globally. The progress was driven by the Kingdom’s announcement that it would raise the carbon-emissions target in its nationally determined contribution (NDC) to 278 mtpa by 2030, more than double the 133 mpta announced in 2015.

The announcement of Saudi Arabia’s aspiration to reach net-zero by 2060 has also contributed to this progress. Depending on the maturity and availability of the necessary technologies, the Kingdom seeks to achieve this ambitious goal through the implementation of the CCE approach, in line with its development plans and economic diversification efforts, and consistent with the “dynamic baseline” stipulated in the Kingdom’s NDC.

The Kingdom has also launched, in this context, a national program for the Circular Carbon Economy, a comprehensive approach endorsed by G20 leaders during the country’s presidency of the summit in 2020.

In the Energy Transition Pillar, the Kingdom advanced 12 places, ranking 12th, as well as ranking first in the Renewable Energy Growth Indicator within the same pillar.

This progress was led by the Kingdom’s announcement that it would raise the share of renewable energy in the energy mix used for electricity production to 50% by 2030.

The Green Future Index is an annual ranking of 76 countries based on their ability to develop a sustainable, low-emissions future. It also measures the degree to which these economies are turning towards clean energy, in industry, agriculture, and society through innovation, policy, and investment in renewables.

The Index is divided into five pillars: Carbon Emissions, Energy Transition, Green Society, Clean Innovation, and Climate Policy.

The Green Saudi Arabia initiative forum, which was held in October last year, announced a first package of more than 60 new initiatives and projects, with investments worth more than 700 billion riyals ($186.6 billion) to contribute to the development of the green economy. The Riyadh Initiative supports all climate action efforts under a single vision that paves the way to reach zero neutrality.



OPEC Again Cuts 2024, 2025 Oil Demand Growth Forecasts

The OPEC logo. Reuters
The OPEC logo. Reuters
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OPEC Again Cuts 2024, 2025 Oil Demand Growth Forecasts

The OPEC logo. Reuters
The OPEC logo. Reuters

OPEC cut its forecast for global oil demand growth this year and next on Tuesday, highlighting weakness in China, India and other regions, marking the producer group's fourth consecutive downward revision in the 2024 outlook.

The weaker outlook highlights the challenge facing OPEC+, which comprises the Organization of the Petroleum Exporting Countries and allies such as Russia, which earlier this month postponed a plan to start raising output in December against a backdrop of falling prices.

In a monthly report on Tuesday, OPEC said world oil demand would rise by 1.82 million barrels per day in 2024, down from growth of 1.93 million bpd forecast last month. Until August, OPEC had kept the outlook unchanged since its first forecast in July 2023.

In the report, OPEC also cut its 2025 global demand growth estimate to 1.54 million bpd from 1.64 million bpd, Reuters.

China accounted for the bulk of the 2024 downgrade. OPEC trimmed its Chinese growth forecast to 450,000 bpd from 580,000 bpd and said diesel use in September fell year-on-year for a seventh consecutive month.

"Diesel has been under pressure from a slowdown in construction amid weak manufacturing activity, combined with the ongoing deployment of LNG-fuelled trucks," OPEC said with reference to China.

Oil pared gains after the report was issued, with Brent crude trading below $73 a barrel.

Forecasts on the strength of demand growth in 2024 vary widely, partly due to differences over demand from China and the pace of the world's switch to cleaner fuels.

OPEC is still at the top of industry estimates and has a long way to go to match the International Energy Agency's far lower view.

The IEA, which represents industrialised countries, sees demand growth of 860,000 bpd in 2024. The agency is scheduled to update its figures on Thursday.

- OUTPUT RISES

OPEC+ has implemented a series of output cuts since late 2022 to support prices, most of which are in place until the end of 2025.

The group was to start unwinding the most recent layer of cuts of 2.2 million bpd from December but said on Nov. 3 it will delay the plan for a month, as weak demand and rising supply outside the group maintain downward pressure on the market.

OPEC's output is also rising, the report showed, with Libyan production rebounding after being cut by unrest. OPEC+ pumped 40.34 million bpd in October, up 215,000 bpd from September. Iraq cut output to 4.07 million bpd, closer to its 4 million bpd quota.

As well as Iraq, OPEC has named Russia and Kazakhstan as among the OPEC+ countries which pumped above quotas.

Russia's output edged up in October by 9,000 bpd to about 9.01 million bpd, OPEC said, slightly above its quota.