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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)
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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.

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From Asia to the Americas: Governments Race to Contain Energy Shock

A gas station in Los Angeles, California (AFP) 
A gas station in Los Angeles, California (AFP) 
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From Asia to the Americas: Governments Race to Contain Energy Shock

A gas station in Los Angeles, California (AFP) 
A gas station in Los Angeles, California (AFP) 

Governments worldwide are moving swiftly to contain the fallout from a sharp rise in energy costs, as global supply disruptions linked to the US-Israeli war on Iran rattle markets.

Surging fuel and electricity prices have prompted urgent steps to protect consumers and secure supplies, with mounting pressure on economies.

In Asia, India has taken measures to safeguard domestic supply, signaling a potential review of fuel exports if needed while prioritizing the local market. Requests from neighboring countries for fuel will be met only if surplus is available.

Authorities have also barred consumers connected to piped gas networks from using liquefied petroleum gas cylinders to manage demand. New Delhi has invoked emergency powers, directing refiners to maximize cooking gas output while cutting industrial supplies to meet household needs.

South Korea is boosting domestic energy production by easing restrictions on coal-fired plants and increasing nuclear utilization to 80 percent of capacity. It is also considering additional support vouchers for vulnerable households. To bolster supply, Seoul has begun implementing a ban on naphtha exports.

China has imposed restrictions on refined fuel exports as a precaution against domestic shortages, while allowing drawdowns from fertilizer reserves to support agriculture ahead of the spring season.

In Southeast Asia, Singapore will accelerate previously announced budget support measures to ease pressure on households and businesses. Indonesia aims to increase coal output, is weighing export taxes, and plans a biofuel program using a diesel–palm oil blend. Cambodia is importing additional fuel from Singapore and Malaysia to offset shortages.

Japan will temporarily ease restrictions to expand coal-fired power generation for one year and has called for coordination through the Group of Seven and the International Energy Agency to stabilize markets. It has also asked Australia to boost liquefied natural gas output.

Elsewhere, the Philippines has suspended wholesale spot electricity trading due to price volatility and supply risks, while activating a 20 billion peso emergency fund.

Vietnam is accelerating a shift to ethanol-blended gasoline, and Australia is drawing on fuel reserves to address shortages, particularly in rural areas, while warning of prolonged economic impacts. Authorities have urged reduced fuel use, including greater reliance on public transport.

Europe acts

European Union institutions have called for temporary measures, including cuts to electricity taxes and network charges, alongside direct support for households.

Italy is considering reducing fuel levies and may impose windfall taxes on companies benefiting from the crisis. Spain is preparing aid and tax relief for households and hard-hit sectors.

In Eastern Europe, Romania has cut diesel excise duties. Serbia has reduced fees on crude oil and extended a ban on exports of oil and derivatives. Slovenia has imposed temporary limits on fuel purchases.

Greece announced 300 million euros in support for fuel and fertilizers, along with reduced maritime transport costs to ease pressure on consumers and farmers.

Americas, Africa respond

In Latin America, Argentina has postponed fuel tax increases. Brazil has scrapped federal diesel taxes, imposed a levy on oil exports and unveiled plans to support fuel imports at the state level.

In Africa, South Africa has temporarily reduced fuel taxes, Ethiopia has increased subsidies, and Namibia has cut fuel levies by 50 percent for three months. Other countries are considering similar steps.

In the Middle East and North Africa, Egypt has capped prices for unsubsidized bread and raised procurement prices for local wheat to strengthen strategic reserves.

Other measures include tax cuts in North Macedonia, energy-saving steps in Mauritius, efforts to secure additional supplies in Sri Lanka and a possible reduction in value-added tax on fuel in Poland.

The breadth of these actions underscores the scale of the global response, as governments seek to cushion households and economies from rising energy costs. Amid persistent geopolitical tensions, policymakers continue to adjust strategies to manage supply risks and price volatility.

Business

IMF Urges BOJ to Keep Raising Rates Even as Iran War Poses New Risks

FILE PHOTO: Bank of Japan Governor Kazuo Ueda attends a press conference after a BOJ policy meeting in Tokyo, Japan, March 19, 2026. REUTERS/Kim Kyung-Hoon/File Photo
FILE PHOTO: Bank of Japan Governor Kazuo Ueda attends a press conference after a BOJ policy meeting in Tokyo, Japan, March 19, 2026. REUTERS/Kim Kyung-Hoon/File Photo
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IMF Urges BOJ to Keep Raising Rates Even as Iran War Poses New Risks

FILE PHOTO: Bank of Japan Governor Kazuo Ueda attends a press conference after a BOJ policy meeting in Tokyo, Japan, March 19, 2026. REUTERS/Kim Kyung-Hoon/File Photo
FILE PHOTO: Bank of Japan Governor Kazuo Ueda attends a press conference after a BOJ policy meeting in Tokyo, Japan, March 19, 2026. REUTERS/Kim Kyung-Hoon/File Photo

The International Monetary Fund urged the Bank of Japan to continue raising interest rates, even as the Middle East war posed "significant new risks" to the country's economic outlook.

The proposal comes amid market expectations the BOJ will raise interest rates as soon as April in the face of mounting inflationary pressure from the conflict-induced spike in oil prices, and higher import costs blamed on the weak yen, Reuters said.

While growth is expected ‌to moderate, due ‌partly to the Iran war, gradual wage gains will ‌underpin ⁠consumption, the IMF ⁠said in a statement issued from Washington on Friday after the conclusion of its policy consultation with Japan.

"Risks to the outlook and inflation are broadly balanced" with inflation expected to converge to the BOJ's 2% target in 2027, the IMF said.

In the statement, the IMF said its executive board commended Japan's "strong economic resilience" to global shocks and agreed the BOJ was appropriately withdrawing monetary accommodation.

"They noted ⁠that as underlying inflation converges toward the BOJ's target, ‌gradual rate hikes toward neutral should continue" in ‌a flexible, well-communicated and data-dependent approach, the statement said.

"Directors stressed the importance of maintaining ‌a flexible exchange rate as a credible shock absorber," it added.

The BOJ ‌ended a massive stimulus in 2024 and raised interest rates several times, including in December, on the view that Japan was on the cusp of durably hitting its 2% inflation target.

The central bank has stressed its readiness to keep raising rates on the ‌expectation that underlying inflation will converge to its 2% target sometime from the second half of fiscal 2026 into ⁠fiscal 2027.

Japan's ⁠fiscal year starts in April. While rising oil prices hurt Japan's import-reliant economy, BOJ policymakers have signaled their concern they will add to inflationary pressures from years of steady wage gains and broader price increases. The BOJ's slew of hawkish communication has prodded markets to price in a roughly 70% chance of a rate hike in April.

The yen's slide towards the key 160-per-dollar level has also kept markets on alert for the chance of currency intervention by Japanese authorities. Finance Minister Satsuki Katayama issued a fresh warning against yen bears on Friday, saying Japan stood ready to act against speculative moves in the currency market. "We're ready to take all available means that are legally feasible, be it conventional or non-conventional," she told an online program on Friday evening.

Business

Iraq in Talks with Gulf States on Pipeline Exports beyond Hormuz

Workers carry out maintenance on a pipeline at a gas separation station in the Zubair oil field near Basra (AP). 
Workers carry out maintenance on a pipeline at a gas separation station in the Zubair oil field near Basra (AP). 
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Iraq in Talks with Gulf States on Pipeline Exports beyond Hormuz

Workers carry out maintenance on a pipeline at a gas separation station in the Zubair oil field near Basra (AP). 
Workers carry out maintenance on a pipeline at a gas separation station in the Zubair oil field near Basra (AP). 

Iraq is in talks with Gulf countries to use their pipeline networks to secure alternative oil export routes beyond the Strait of Hormuz, the state oil marketer SOMO said Thursday.

The move is part of an emergency strategy by the oil ministry to tap regional infrastructure and bypass maritime chokepoints, ensuring Iraqi crude continues to reach global markets while offsetting higher transport costs linked to the current crisis.

Ali Nizar al-Shatari, head of the State Organization for Marketing of Oil (SOMO), said the ministry is prioritizing negotiations to access Gulf pipeline systems extending beyond the Strait of Hormuz and into the Arabian Sea, allowing exports to avoid areas of military tension.

“The goal is to secure stable routes that guarantee efficient flows of Iraqi oil at lower transport costs,” Shatari said, adding that Iraq generated about $2 billion in oil revenues in March, up 28 percent from February.

He said SOMO exported around 18 million barrels of crude from Basra, Kirkuk and the Kurdistan region by using all available outlets, including southern ports that operated until early March and northern routes to Türkiye’s Mediterranean port of Ceyhan.

As part of efforts to diversify export options, Shatari revealed that the first shipments of fuel oil and Basra Medium crude successfully reached Syrian ports.

He noted that Iraq had signed a deal to export 50,000 barrels per day via this route, describing cooperation with Syria as “very significant,” with storage and security provided to ensure safe delivery to the port of Baniyas.

The route has proven effective and could become a permanent option after the crisis, he added.

Shatari further noted that the oil ministry is close to completing repairs on the Iraq-Türkiye pipeline, which suffered extensive damage in previous years.

Technical teams have inspected the most difficult terrain, with about 200 kilometers (125 miles) still to be assessed in the coming days before full pumping of Kirkuk crude resumes.

In a notable logistical move, Iraq has begun pumping Basra crude northwards for export via Ceyhan.

Flows started at 170,000 barrels per day and are expected to stabilize between 200,000 and 250,000 bpd, helping offset disrupted southern exports and supply energy-hungry markets in Europe and the Americas.

Shatari said Iraq has benefited from rising global prices by selling Kirkuk crude — a medium-grade oil — at strong premiums.

He also confirmed the reactivation of an agreement with the Kurdistan region to reuse the pipeline through the region to Ceyhan, helping lift total exports to 18 million barrels in March.

This came despite a drop in production in Kurdistan fields to about 200,000 bpd due to security threats, he added.