Why do Saudi investors need to explore China’s carbon recycling industry?

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We agree that nature and humankind are intrinsically interwoven regardless of political, economic or athletic affiliations.

But how can we protect this varied biodiversity while devising solutions that inspire enterprises and individuals to adopt this forward-thinking attitude and play a positive part in reducing environmental impact?

How can we achieve this while maximizing benefits, expanding markets, stimulating the economy, creating jobs, and launching groundbreaking projects that promote long-term development and growth?

The Future Investment Initiative summit, attended by a select group of global authorities and experts last year, looked into these ideas.

We observed how countries, particularly Saudi Arabia, launched crucial and strategic initiatives to open up new markets and opportunities.

My attention was drawn to Prince Abdulaziz bin Salman’s statements on Vision 2030, mainly when he said, “Vision 2030 is vital to us, and we are trying to implement its initiatives.”

According to Prince Abdulaziz, Saudi Arabia established the Circular Carbon Economy Program to reduce emissions and significantly diversify energy production resources.

The Kingdom, according to Prince Abdulaziz, has a hydrocarbon sustainability program, which aims at lowering emission levels by minimizing any conceivable emissions.

As a result, emissions can be used to recycle these levels and turn them into usable materials that create various new products. Saudi Basic Industries Corp. and Saudi Aramco have done precisely that.

The carbon recycling sector was just 15 years old in 2006. In 2012, Carbon Recycling International, the first firm in this industry, built an Icelandic facility employing a technique that transforms emissions into liquid.

The company’s international expansion was spurred by a strategic agreement with China’s Geely Automotive and Zixin Co. to commercialize this technology.

As a result of this agreement, China plans to build roughly 30 facilities to convert carbon dioxide into methanol by 2030.

The carbon dioxide emissions from these factories will be reduced by about 6 million tons annually. In addition, these technologies can also be utilized to produce gas byproducts while absorbing and using carbon dioxide emissions from wind and solar energy.

Methanol is now valued at over $30 billion in the Chinese market, with an annual growth rate of 10 percent. Plastics and industrial raw material companies account for most methanol customers in China. The transition from fossil methanol to green methanol requires industries to produce carbon-neutral raw materials.

In terms of returns on investment, environmental leaders outperform their colleagues in other industries. In the environmental sector, the average return on owners’ equity is 17 percent, compared to 14 percent in other sectors, not to mention the benefits of employee welfare, societal appreciation and customer happiness.

These strategic advantages support my earlier assertion that the return is more than just environmental. It will look at measures to increase corporate and private sector growth while boosting overall economic growth.

Companies still have time and resources to invest in environmental areas, acquire small and medium businesses that maximize benefit, leverage expertise and, most significantly, establish research and development companies.

China’s markets are promising due to its experience in attracting varied investments both within and outside of its boundaries.

Perhaps the Public Investment Fund will have an excellent opportunity to investigate this market and recruit local investors. This will widen and diversify chances in a long-term strategic market, allowing domestic companies to participate.

Our natural resources are limited, but the recycling industry knows no limitations.