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.



IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
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IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA

The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) signed a memorandum of understanding (MoU) on the sidelines of the AlUla Conference on Emerging Market Economies (EME) to enhance cooperation between the two institutions.

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki, SPA reported.

The agreement aims to strengthen coordination in economic and financial policy areas, including surveillance and lending activities, data and analytical exchange, capacity building, and the provision of technical assistance, in support of regional financial and economic stability.

Both sides affirmed that the MoU represents an important step toward deepening their strategic partnership and strengthening the regional financial safety net, serving member countries and enhancing their ability to address economic challenges.


Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT
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Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT

The Federation of Saudi Chambers announced the formation of the first joint Saudi-Kuwaiti Business Council for its inaugural term (1447–1451 AH) and the election of Salman bin Hassan Al-Oqayel as its chairman.

Al-Oqayel said the council’s formation marks a pivotal milestone in economic relations between Saudi Arabia and Kuwait, reflecting a practical approach to enabling the business sectors in both countries to capitalize on promising investment opportunities and strengthen bilateral trade and investment partnerships, SPA reported.

He noted that trade between Saudi Arabia and Kuwait reached approximately SAR9.5 billion by the end of November 2025, including SAR8 billion in Saudi exports and SAR1.5 billion in Kuwaiti imports.


Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
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Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.