Double Standards in Climate Action Impede Energy Transformation, Sustainability

The Saudi Green Initiative is a model for the region’s approach to climate change. (Asharq Al-Awsat)
The Saudi Green Initiative is a model for the region’s approach to climate change. (Asharq Al-Awsat)
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Double Standards in Climate Action Impede Energy Transformation, Sustainability

The Saudi Green Initiative is a model for the region’s approach to climate change. (Asharq Al-Awsat)
The Saudi Green Initiative is a model for the region’s approach to climate change. (Asharq Al-Awsat)

Saudi Energy Minister Prince Abdulaziz bin Salman recently announced an investment of around one trillion riyals ($266.40 billion) in clean energy generation.

In late 2022, the UAE announced an investment of $100 billion, in partnership with the United State, to implement clean energy projects in the two countries and around the world.

The moves reflect the determination of these oil-producing countries to diversify their economies and energy sources, and to play their role and duty in facing the repercussions of climate change.

As the region prepares to host the Conference of the Parties to the United Nations Framework Convention on Climate Change, known as COP 28, in the UAE in November, voices were raised, accusing the oil and gas sector of causing climate change problems and calling to stop production and use of those resources.

Ignoring responsibility

Climate change activists convey a range of contradictions and misinformation, as their countries have been burning coal for centuries, which is the most carbon-emitting fuel.

These countries have already completed the construction of their basic infrastructure and the development of their economies, while some environmental activists are calling for stopping oil and gas production in developing countries, which are still working on establishing their infrastructure and building their economies.

They are ignoring the world’s inability to stop oil and gas production immediately or quickly without leading to a global meltdown.

In remarks to Asharq Al-Awsat, Dr. Khaled Batarfi, a professor at AlFaisal University in Saudi Arabia, said: “Some are working to politicize the issue and profit from it. Each party blames the others, as the West did by holding oil-producing countries responsible for polluting the universe, and thus demanding compensation for those affected.”

“Politicians also used slogans to win votes, and failed to meet most of their promises, especially when they clashed with interests,” he remarked.

He continued: “Although we have not yet been affected by global warming, as have the countries of the northern hemisphere… we are part of this world, and whatever befalls it affects us.”

Batarfi stressed that oil producing countries were accused, “unjustly and arbitrarily, just because we produce oil, and they forget that they consume the most of it, and cause carbon emissions.”

“Our countries are ahead in discovering solutions and implementing them on the ground,” he noted.

He pointed in this context to the Kingdom’s Green Middle East and Green Saudi Arabia initiatives, solar and wind energy projects, green hydrogen, and blue ammonia. He also emphasized the adoption of renewable energy in Saudi Arabia’s new cities, such as NEOM.

“The West is lecturing, while Saudi Arabia is working and achieving. There is a big difference between those who achieve and those who raise slogans,” he remarked.

Life products

Oil is not only a source of energy. The use of petrochemical products, including the uses of plastic in medical tools and equipment, has brought about major transformations in the medical sector.

For example, old medical syringes were made of glass, and their use required boiling them for ten minutes to sterilize them. Today, pre-sterilized plastic syringes are used for one time, and they contributed to the speedy delivery of treatment.

Preserving the environment in this aspect has been addressed through recycling, and not throwing plastic waste into landfills or seas.

Eng. Othman Al-Khowaiter, an expert in the future of energy sources, told Asharq Al-Awsat that some were trying to downplay the importance of oil, and predict that it will soon be dispensed with.

He added that they praise the emergence of electric vehicles, while ignoring the great importance of hydrocarbons for the petrochemical industries that supply the world with countless types of industrial and consumer products.

Where is the solution?

Reaching effective solutions requires a realistic scientific diagnosis of the problem. In fact, greenhouse gases that cause global warming include: methane, carbon dioxide, nitrous oxide, hydrochloric acid, fluorocarbons, and others.

These gases have many sources, including agricultural and livestock activities (methane), industrial and domestic activities (carbon)... and others. But when some activists focus on one type of gas, such as carbon, and on one sector, such as oil and gas, this raises questions about their real intentions.

Moreover, electric cars need rechargeable batteries, the production of which requires minerals such as lithium. Mining these minerals causes a lot of emissions.

Here, it is necessary to take into account the source of electricity these cars will need, which raises questions about the industrial and economic cycle that will arise and the extent to which it causes emissions, and who will be the real economic beneficiary.

Conferences of the Parties

With all these challenges and proposals, all eyes turn to the next Conference of the Parties, which the UAE will host at the end of the year, with Dr. Sultan Al-Jaber, Minister of Industry and Advanced Technology, being selected to head the session.

Al-Jaber had confirmed on several occasions that the vision of his country’s leadership was to invest in depleted resources, such as oil and gas, with the aim of building sustainable resources for renewable and clean energy.



AlUla Conference: Cooperation Among Emerging Markets to Address Global Uncertainty

IMF Managing Director Kristalina Georgieva and Saudi Finance Minister Mohammed Al-Jadaan (AlUla Conference)
IMF Managing Director Kristalina Georgieva and Saudi Finance Minister Mohammed Al-Jadaan (AlUla Conference)
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AlUla Conference: Cooperation Among Emerging Markets to Address Global Uncertainty

IMF Managing Director Kristalina Georgieva and Saudi Finance Minister Mohammed Al-Jadaan (AlUla Conference)
IMF Managing Director Kristalina Georgieva and Saudi Finance Minister Mohammed Al-Jadaan (AlUla Conference)

Global economic uncertainty took center stage at the AlUla Conference for Emerging Market Economies, which brought together finance ministers, central bank governors, and policymakers from emerging markets to explore solutions for shared challenges.

The goal, as Saudi Finance Minister Mohammed Al-Jadaan stressed in his opening speech, was to build a stronger, more sustainable, and inclusive global economy.

Jointly organized by the Saudi Ministry of Finance and the International Monetary Fund (IMF), the conference served as a platform for discussing local, regional, and global economic developments, as well as policies and reforms that could shield emerging economies from current and future economic shocks. Among the key issues on the agenda were sluggish growth, increasing financing needs, and rising public debt levels. Al-Jadaan also stressed the need for a global framework for restructuring sovereign debt.

IMF Managing Director Kristalina Georgieva highlighted the importance of adaptability and resilience for emerging markets, stating that these factors would be key to future success.

Syria’s Role in the Discussions

The Syrian economic situation was also a topic of discussion. Georgieva announced that the IMF has initiated communication channels with the Syrian government, telling Asharq News that IMF staff have already begun engaging with Syrian officials to bridge the data gap that has widened over the years. She emphasized the need for key institutions, such as the central bank, to receive support in rebuilding Syria’s institutional capacity to serve its economy and people efficiently.

She added that the IMF is ready to assist Syria within the constraints of the current circumstances. According to Asharq Al-Awsat, an IMF delegation is expected to visit Damascus soon to explore potential cooperation mechanisms.

Regarding Lebanon, the IMF is awaiting the government of Prime Minister Nawaf Salam to secure parliamentary confidence based on its ministerial statement before proceeding with further actions.

The speech by the Governor of the People’s Bank of China, Pan Gongsheng, attracted significant attention, especially in light of the ongoing US-China trade dispute, which has seen Washington impose tariffs on Beijing and China respond with countermeasures.

Pan reassured attendees that despite current economic slowdowns, China’s economy remains fundamentally strong. However, like other emerging markets, China faces risks from the rise of trade protectionism, geopolitical tensions, and global economic fragmentation.

The conference comes less than a year after the IMF established its regional office in Riyadh, aimed at supporting economic development in the region by providing technical assistance and promoting sustainable growth.

Sovereign Debt Crisis and Global Cooperation

Al-Jadaan stressed the importance of a long-term vision to improve economic conditions in emerging markets and find solutions for sovereign debt challenges. In his speech, he reiterated the need for multilateral cooperation, stating that conferences like this one are crucial starting points for tackling global economic challenges.

He highlighted key topics discussed at the conference, including structural transformations, high debt levels, limited fiscal space, technological shifts, monetary policy, trade and investment, and building resilience against future economic shocks.

The Saudi minister underlined the importance of strengthening East-West and North-South cooperation, arguing that governments and the private sector must work together to prepare economies and workforces for the future. He also called for innovative solutions to tackle structural risks such as debt burdens that threaten development gains, noting that reforming global initiatives—like the Common Framework for Debt Restructuring—is essential.

Georgieva, for his part, pointed out that high debt levels, limited financial resources, and growing fiscal pressures pose significant challenges to emerging economies. She cautioned against short-term fiscal stimulus measures, warning that while they may boost domestic demand in the short term, they could also fuel inflation and financial instability.

During her speech at the AlUla Conference, Georgieva predicted that inflation in advanced economies will return to target levels faster than in emerging markets, partly due to the strength of the US dollar, which could trigger capital outflows and further complicate monetary policy in developing economies.

She called for a fundamental shift in economic policies and trade strategies, with a stronger emphasis on international cooperation to tackle emerging challenges, particularly given the rapid changes in technology, geopolitics, and the global economic landscape.

High Debt and Limited Fiscal Space

The conference featured a panel discussion titled “High Debt and Limited Fiscal Space,” which included Al-Jadaan, Russian Finance Minister Anton Siluanov, Zambian Finance Minister Situmbeko Musokotwane, and former Colombian Finance Minister Mauricio Cardenas.

Al-Jadaan highlighted the global challenge of mobilizing resources to support development, reaffirming Saudi Arabia’s commitment to developmental aid despite its significant domestic investment in Vision 2030 projects. He noted that a large portion of Saudi aid is linked to IMF programs, ensuring sustainable and impactful economic reforms in recipient countries.

Siluanov expressed Russia’s willingness to restructure foreign debt, emphasizing the importance of prudent fiscal policies in managing the global debt crisis. He noted that over the past 25 years, Russia has restructured the debts of 22 countries, totaling approximately $30 billion, with an equivalent amount restructured through bilateral agreements.