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.



Euro Falls as Markets Brace for French Post-election Gridlock

A participant holds a French flag during an election night rally following the first results of the second round of France's legislative election at Place de la Republique in Paris on July 7, 2024. (AFP)
A participant holds a French flag during an election night rally following the first results of the second round of France's legislative election at Place de la Republique in Paris on July 7, 2024. (AFP)
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Euro Falls as Markets Brace for French Post-election Gridlock

A participant holds a French flag during an election night rally following the first results of the second round of France's legislative election at Place de la Republique in Paris on July 7, 2024. (AFP)
A participant holds a French flag during an election night rally following the first results of the second round of France's legislative election at Place de la Republique in Paris on July 7, 2024. (AFP)

The euro slipped on Sunday after projections from France's election pointed to a hung parliament and an unexpectedly strong showing for the left-wing New Popular Front, casting fresh uncertainty over markets and setting the stage for further volatility ahead.

Analysts said markets would likely be relieved that Marine Le Pen’s far-right National Rally (RN) was forecast to come third after last week's first-round victory.

Yet investors also have concerns that the French left’s plans could unwind many of President Emmanuel Macron’s pro-market reforms. And they believe political gridlock could end attempts to rein in France's debt, which stood at 110.6% of gross domestic product (GDP) in 2023.

The euro fell 0.2% to $1.081 as the week’s trading got underway. It had climbed last week as opinion polls suggested a hung parliament was likely, assuaging fears of a far-right victory, after dropping sharply - along with stocks and bonds - when Macron called the elections in early June.

"It looks like the anti-far right parties really got a lot of support," said Simon Harvey, head of FX analysis at Monex Europe.

"But fundamentally from a market perspective, there’s no difference in terms of the outcome. There’s really going to be a vacuum when it comes to France’s legislative ability."

Harvey added: "The bond market is going to be the real place to look at. There might be a bit of a gap lower in French bonds (prices)."

Trading in French bonds and stocks will begin on Monday morning in Europe.

The leftist alliance, which gathers the hard left, the Socialists and Greens, was forecast to win between 172 and 215 seats out of 577, according to pollsters' projections based on early results from a sample of polling stations.

Macron’s centrist alliance was projected to win 150-180 seats, with the RN seen getting 115 to 155 seats.

Analysts said a period of volatility and uncertainty was expected to continue as investors now assess what form the parliament will take, and how many, if any, of its policies the leftist alliance will be able to implement.

The New Popular Front alliance says its first moves would include a 10% civil servant pay hike, providing free school lunches, supplies and transport while raising housing subsidies by 10%.

"The economic program of the left is in many ways much more problematic than that of the right, and while the left will not be able to govern on their own, the outlook for French public finances deteriorates further with these results," said Nordea chief market analyst Jan von Gerich.

JITTERY MARKETS

Markets tumbled after Macron gambled in June by calling a parliamentary election following a trouncing at the hands of the RN in European Parliament elections - as investors worried an RN victory could install a prime minister intent on a high-spending, France-first agenda that would exacerbate a large debt pile and shake relations with Europe.

The risk premium investors demand to hold the country's debt soared to its highest level since the euro zone crisis in 2012. French stocks, led by banks, dropped as investors worried about their holdings of government debt, new regulation and economic uncertainty in the euro area's second biggest economy.

Yet equities, bonds and the euro all recovered somewhat last week as polls showed a hung parliament was the most likely outcome as the left wing and centrist parties struck deals to give anti-RN candidates a better chance.

The exact make-up of the next parliament remains uncertain, as does the next prime minister. Gabriel Attal said he would hand his resignation to Macron on Monday.

"It’s going to be very hard to actually go ahead and pass any policy and bring about any progressive reforms because each party’s vote is split and no one has an absolute majority," said Aneeka Gupta, director of macroeconomic research at WisdomTree.

Yet she added: "I think the markets will be happy we’re avoiding this extreme situation with the far right."