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Saudi Arabia Tells the Story of its Energy Transformation

Prince Abdulaziz bin Salman presents the progress made by Saudi Arabia in the field of energy transition. (World Energy Forum website)
Prince Abdulaziz bin Salman presents the progress made by Saudi Arabia in the field of energy transition. (World Energy Forum website)
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Saudi Arabia Tells the Story of its Energy Transformation

Prince Abdulaziz bin Salman presents the progress made by Saudi Arabia in the field of energy transition. (World Energy Forum website)
Prince Abdulaziz bin Salman presents the progress made by Saudi Arabia in the field of energy transition. (World Energy Forum website)

Saudi Arabia shared the story of its energy transformation that began in 2019, displaying its achievements towards an innovative and sustainable future at the 14th Symposium of the International Energy Agency, the International Energy Forum and OPEC, which was recently held in Riyadh.

During the event, Saudi Minister of Energy Prince Abdulaziz bin Salman presented a report entitled, “The progress made in Saudi Arabia towards the energy transition and the upcoming global challenges,” stressing that energy transition in the Kingdom has been proactive and comprehensive since 2019, when the country adopted the circular economy approach.

The minister pointed to the launch of two major initiatives in 2021, namely the Saudi Green Initiative, which aims to pump investments worth about $266 billion to generate clean energy, in addition to reducing carbon emissions by 278 billion tons annually until 2030.

The second is the Middle East Green Initiative, which aims to mobilize efforts of various stakeholders to reduce carbon emissions by an amount equivalent to 10 percent of global contributions, thus reducing carbon emissions from oil production in the region by more than 60 percent.

The report explained the progress Saudi Arabia has made in the field of energy transition, including saving the equivalent of 492,000 barrels of oil per day since the start of the Saudi Energy Efficiency Program (SEEP) in 2012 and implementing the liquid fuel displacement program in the electricity production sector, which aims to eliminate the burning of one million barrels of liquid fuel by utilizing renewable energy sources.

The Kingdom also plans to increase its capture and storage capacity to 44 million tons annually by 2035, which includes capturing and using two million tons annually of carbon dioxide to produce glycol, green methanol, and clean fuel.

Moreover, the report pointed to the goal of generating 50 percent of electricity from renewable energy by 2030 and increasing reliance on clean hydrogen and low-emission fuel by shipping 150,000 tons of clean ammonia to the world.

Saudi Arabia is also considering establishing a complex to use carbon dioxide and hydrogen gas for the purpose of producing clean fuel derivatives and works to plant 600 million trees by 2030.

The Kingdom has the second lowest methane intensity, and is committed to further reducing methane emissions from oil and gas, according to the report.

Based on a study conducted by the King Abdullah Petroleum Studies and Research Center (KAPSARC), using the Kayrros satellite emissions measurement, it was found that the density of methane gas in Saudi Arabia was 73 percent lower than the value reported by the International Energy Agency. This means that the Kingdom has the second lowest methane intensity among major oil and gas producing countries.

The carbon intensity of the barrel produced by Saudi Arabia is also among the lowest in the world. It has the second lowest carbon intensity among major crude oil producers. In 2021, the country joined the Zero Neutrality Forum for Oil Producers with Canada, Norway, Qatar, the United Arab Emirates, and the United States, which aims to discuss how to support the implementation of the Paris Climate Change Agreement.

As of 2024, the Kingdom plans to offer 20 gigawatts of renewable capacity annually, a goal that only China and the United States have exceeded.

In December 2023, Prince Abdulaziz bin Salman announced that the Kingdom plans to launch renewable energy projects with a capacity of 20 gigawatts in 2024, after it has succeeded in doubling its production of renewable energy four times from 700 megawatts to 2.8 gigawatts.

Also in 2023, the market mechanism for compensating and balancing greenhouse gases (carbon equivalents) was activated. The mechanism aims to issue carbon certificates to stimulate investments in projects that seek to reduce emissions of these gases in all sectors in the Kingdom, and to help achieve the country’s nationally determined contributions under the umbrella of the Framework Convention on Climate Change and the Paris Agreement.

Globally, the Ministry of Energy says that the world has made progress towards mitigating the effects of climate change since the Paris Agreement in 2015, with green investments exceeding $1.8 trillion in 2023, in addition to reviving the Loss and Damage Fund.

Global renewable capacity additions also rose from about 150 GW in 2015 to nearly 510 GW in 2023, the fastest growth rate in the past two decades. Since 2015, more than 300 million people have had access to electricity and more than 700 million people have obtained clean cooking fuels, in addition to the United Nations Climate Change Conference (COP28) reaching a historic agreement on the deep, rapid and sustainable reduction of greenhouse gas emissions in a nationally defined way through eight global efforts.

However, the ministry indicated that despite this progress, further efforts should be deployed to achieve the global transformation in the field of energy, by overcoming major challenges, most notably mobilizing investments and financing.

Gaps in transition financing represent a major obstacle for developing countries in pursuing their net zero ambitions.

The energy transition requires annual investments estimated at about $6 trillion ($1.8 trillion secured in 2023). The annual investments needed represent 7.5 percent of the entire global GDP. This therefore requires that international financial systems evolve to facilitate the required growth of public and private financing.

The Ministry of Energy believes that although renewable energy sources are growing at a record rate, more efforts are needed to increase renewable capacity three-fold in less than a decade. For this purpose, $8 trillion is needed for new installed capacity and $3.6 trillion for grid expansion.

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Lebanon’s Deepening Cost-of-Living Crisis Raises Fears of Unrest

A woman carries grocery bags in Beirut amid continued price increases (Reuters)
A woman carries grocery bags in Beirut amid continued price increases (Reuters)
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Lebanon’s Deepening Cost-of-Living Crisis Raises Fears of Unrest

A woman carries grocery bags in Beirut amid continued price increases (Reuters)
A woman carries grocery bags in Beirut amid continued price increases (Reuters)

Lebanon’s worsening cost-of-living crisis and widening poverty are threatening to erase the country’s fragile economic recovery, raising fears of social unrest as inflation accelerates and the fallout from successive wars deepens.

Two major rounds of fighting over the past two years have wiped out much of the progress made in restoring economic growth, undermining efforts by the country’s political leadership and government to overcome the financial collapse and revive support from regional and international partners.

Food inflation has reached an average of 20% this year, with monthly increases of around 2%, while a recent World Bank report on Lebanon’s poverty outlook highlighted a sharp deterioration in food security.

The number of people facing crisis or emergency levels of food insecurity rose to approximately 1.24 million in 2026, up from 874,000 in 2025, with South Lebanon and Nabatieh among the hardest-hit regions.

Business and labor union sources warned that worsening living conditions could spark a wave of protests, confronting the government with challenges extending beyond its ongoing disputes with public sector employees and retirees.

Low incomes and soaring prices have already prompted intermittent strikes, partially disrupting ministries and public institutions and affecting Treasury revenues from vital services.

According to employer and labor representatives, more than a quarter of Lebanon’s residents now face severe poverty or acute economic hardship.

Based on the World Bank’s figures and an average household size of five, this represents roughly 250,000 families.

The sources estimated that broader financial hardship affects nearly 80% of residents, as cumulative price increases have pushed the inflation index close to 9,000 percentage points, largely reflecting successive surges since the financial and monetary crisis erupted in 2019.

The World Bank highlighted the deterioration in household living conditions following the escalation of hostilities in spring 2026.

Displaced families have become increasingly dependent on informal support networks and dwindling financial resources after losing income and productive assets.

Meanwhile, reduced electricity generation at Lebanon’s fuel-powered state plants has forced households to shoulder steep increases in private generator subscription fees, further eroding purchasing power. The crisis is compounded by the government’s strained finances and concerns over a further decline in Treasury revenues.

Lebanon’s financial collapse has left an estimated loss gap exceeding $70 billion, while successive rounds of fighting since autumn 2023 have caused more than $27 billion in direct and indirect economic and reconstruction-related losses, according to official estimates.

The World Bank forecasts a 6.4% contraction in gross domestic product in 2026, reversing the fragile 4.2% recovery recorded the previous year. Annual inflation rose to 17.3% in the first half of 2026, compared with 14.6% in 2025.

Despite conflict-related pressures, the World Bank reported that Lebanon’s public finances maintained a surplus of $1 billion, equivalent to 2.5% of GDP, through the end of May.

The surplus represented a 32% year-on-year increase, supported by a 26.6% rise in government revenues, particularly receipts from fuel excise taxes.

Public spending climbed 23.7%, driven by higher public sector salaries, capital expenditure, hospitalization costs and conflict-related Treasury advances.

Meanwhile, prices for water, electricity, gas and other fuels rose 25.3% year-on-year, while transportation costs increased 29.5% by midyear.

On the monetary front, the World Bank linked the Lebanese pound’s stable exchange rate against the US dollar to tight liquidity in local currency.

However, foreign currency reserves at Banque du Liban fell to $11.6 billion in mid-August, enough to cover approximately 6.6 months of imports, compared with $12.1 billion in mid-February.

The decline reflected the central bank’s need to draw on its reserves to meet foreign currency obligations amid reduced dollar availability in the market.

Lebanon’s trade deficit widened 8.8% year-on-year to $10.2 billion by the end of July, as exports fell 16.6% and imports rose 4.2%.

The report attributed the deterioration to conflict-related disruptions affecting exports, alongside higher oil prices and insurance premiums.

Energy imports rose 9% in value to approximately $3 billion during the first seven months of the year, despite a 31% decline in imported volumes.

The imbalance placed additional pressure on Lebanon’s current account, further straining foreign currency inflows and reserves.

Business

IMF: Saudi Attacks Could Have Negative Spillover 'Everywhere'

IMF Managing Director Kristalina Georgieva gestures during the Managing Director briefing on the Global Policy Agenda during the 2026 IMF-World Bank Group Annual Meetings at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 14, 2026. (Photo by ANTHONY WALLACE / AFP)
IMF Managing Director Kristalina Georgieva gestures during the Managing Director briefing on the Global Policy Agenda during the 2026 IMF-World Bank Group Annual Meetings at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 14, 2026. (Photo by ANTHONY WALLACE / AFP)
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IMF: Saudi Attacks Could Have Negative Spillover 'Everywhere'

IMF Managing Director Kristalina Georgieva gestures during the Managing Director briefing on the Global Policy Agenda during the 2026 IMF-World Bank Group Annual Meetings at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 14, 2026. (Photo by ANTHONY WALLACE / AFP)
IMF Managing Director Kristalina Georgieva gestures during the Managing Director briefing on the Global Policy Agenda during the 2026 IMF-World Bank Group Annual Meetings at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 14, 2026. (Photo by ANTHONY WALLACE / AFP)

International Monetary Fund head Kristalina Georgieva said Wednesday that recent attacks on Saudi Arabia could impact people "everywhere” as "the Saudi economy is important for the region and the world."

Given the Saudi economy’s importance, “these developments have potentially negative spillovers for everybody, everywhere," IMF managing director Georgieva said at a news conference during the Annual Meetings of the Fund and World Bank in Bangkok.

The warning comes at a time when energy flows and shipping activity in the region are under pressure, with supply disruptions potentially affecting energy and trade costs as well as economic activity, particularly in economies dependent on oil and gas imports.

The IMF’s forecasts, released on Tuesday, highlight the scale of the expected impact of the disruptions on the region’s economies. The IMF expects the economies of the Middle East and Central Asia to contract by 0.3 percent in 2026, followed by growth of 6.3 percent in 2027, a trajectory that reflects the pressures of the current crisis as well as the anticipated recovery as the disruptions ease and energy and trade flows are restored.

The expected repercussions vary across regional economies depending on their exposure to shipping disruptions and their ability to maintain exports. In its outlook for Saudi Arabia, the IMF raised its 2027 growth forecast to 7.9 percent, from 2.4 percent in July and 3.4 percent in April.

Meanwhile, it lowered its estimate for the economy’s contraction in 2026 to 3.3 percent, compared with 5 percent in its July update and 6.4 percent in April.

This trajectory reflects expectations that production and exports will regain momentum as shipping disruptions subside, although the speed and scale of the recovery will remain tied to developments in the security situation and the normalization of energy and trade flows.

The Saudi Ministry of Finance has projected stronger growth of 12.8 percent in 2027, according to the pre-budget statement.

Business

Taiwan Says Will Invest Up to US$4.4 bn in Alaska Gas Project

A snipers team provides security as US President Donald Trump boards Air Force One at Elmendorf Air Force Base in Anchorage, Alaska, on October 13, 2026. (Photo by Kent NISHIMURA / AFP)
A snipers team provides security as US President Donald Trump boards Air Force One at Elmendorf Air Force Base in Anchorage, Alaska, on October 13, 2026. (Photo by Kent NISHIMURA / AFP)
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Taiwan Says Will Invest Up to US$4.4 bn in Alaska Gas Project

A snipers team provides security as US President Donald Trump boards Air Force One at Elmendorf Air Force Base in Anchorage, Alaska, on October 13, 2026. (Photo by Kent NISHIMURA / AFP)
A snipers team provides security as US President Donald Trump boards Air Force One at Elmendorf Air Force Base in Anchorage, Alaska, on October 13, 2026. (Photo by Kent NISHIMURA / AFP)

Taiwan said Wednesday it will inject up to US$4.4 billion in the Alaska LNG project, after US President Donald Trump announced the island's investment in the to-be-built natural gas pipeline.

Taiwan imports nearly all of its energy supply and has sought to shore up Washington's support as China presses its claims of sovereignty over the island democracy.

"According to current plans, the cooperation will include the annual procurement of six million metric tons of Alaska LNG following production," the Ministry of Economic Affairs said in a statement.

It will also involve "participation in project development, with an estimated investment of up to US$4.4 billion," AFP quoted the ministry as saying.

"If the project progresses smoothly according to the planned timeline, it is expected to begin further supplementing domestic natural gas supplies as early as 2032," it added.

The statement came hours after Trump told a rally in Wasilla, Alaska, that Taiwan had agreed to buy 30 percent of the output from the pipeline over the next 20 year and also invest US$4.4 billion into the project.

Taiwan sources its LNG from multiple countries but the mix has changed dramatically this year after the start of the Middle East war when Iran claimed control of the Strait of Hormuz.