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Saudi Arabia and Turkiye advance industrial and mining cooperation

Saudi Arabia and Turkiye advance industrial and mining cooperation
The discussions aimed to increase trade and non-oil exports. SPA
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Updated 01 October 2024
Arab News
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Saudi Arabia and Turkiye advance industrial and mining cooperation

Saudi Arabia and Turkiye advance industrial and mining cooperation
  • Discussions aimed to enhance joint efforts in the industrial and mining sectors
  • Volume of trade between Saudi Arabia and Turkiye reached $6.8 billion in 2023
Updated 01 October 2024
Arab News
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RIYADH: ​​Saudi Arabia and Turkiye are working to enhance cooperation in the industrial and mining sectors following recent high-level meetings.

To boost trade and non-oil exports while attracting high-quality investments, the Kingdom’s Deputy Minister of Industry and Mineral Resources for Industrial Affairs Khalil bin Salamah explored promising investment opportunities and joint industrial capacity building during his official visit to Turkiye.

Accompanied by several Saudi private sector officials, this visit follows up on discussions initiated by the Minister of Industry and Mineral Resources Bandar Alkhorayef, during his official visit to the country in August 2023. 

The discussions aimed to enhance joint efforts in the industrial and mining sectors, increase trade and non-oil exports, and attract quality investments in these sectors.

The volume of trade between Saudi Arabia and Turkiye reached $6.8 billion in 2023, while Saudi firms have made an investment of over $2 billion in Turkiye, according to the West Asian country’s Trade Minister Mehmet Mus. 

Turkiye expects bilateral trade with the Kingdom to reach $10 billion in the coming years, the Turkish official said during the Saudi-Turkish Business Forum in Riyadh in March 2023.

As part of this month’s visit, which builds on ongoing efforts to develop industrial partnerships with Turkiye, Salamah met with the President of the Defense Industry Agency Haluk Gorgun and the Deputy Secretary-General of the Turkish Exporters Assembly Gokhan Yuceer, in the presence of the Saudi Ambassador to Turkiye, Fahd bin Asaad Abu Al-Nasr.

The deputy minister also chaired a roundtable meeting between Saudi and Turkish representatives at the Foreign Economic Relations Turkish Board to discuss industrial and commercial cooperation opportunities. The meeting was attended by numerous representatives from Turkish companies, according to the Saudi Press Agency.

Salamah’s visit included stops in several Turkish cities, such as Ankara, Eskisehir, and Istanbul. He toured various private sector companies and institutions, including ASELSAN, Roketsan and Turkish Aerospace as well as TEI, TEI Metal, and TEI Alloys, and visited the Middle East Technical University. 

During these visits, he held bilateral meetings to review unique investment opportunities in the industrial and mining sectors and discussed building industrial and knowledge capacities.

In Istanbul, Salamah also met with Saudi students studying in Turkiye in the presence of Faisal Osrs, the cultural attache at the Kingdom’s Embassy in Ankara.

Earlier this month, Turkish President Recep Erdogan received Saudi Foreign Minister Prince Faisal bin Farhan in Istanbul on an official visit to strengthen bilateral relations between the Kingdom and Turkiye, SPA reported. 

They also discussed regional developments and efforts to ensure stability in the region. The meeting between Prince Faisal and the Turkish president was also attended by the Undersecretary of the Ministry of Foreign Affairs for Political Affairs Saud Al-Sati, and the Saudi ambassador to Turkiye Fahad Abu Al-Nasr. 

During his visit, Prince Faisal also met with his Turkish counterpart Hakan Fidan, who said in a press conference that Saudi-Turkish relations were witnessing remarkable progress in all political, economic, and security fields. 

Topics: main Mining Saudi-turkey Saudi-Turkiye ties Saudi Arabia Turkiye

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Leaders stress urgent need for climate finance at COP29 ministerial dialogue

Leaders stress urgent need for climate finance at COP29 ministerial dialogue
Updated 14 November 2024
Nour El-Shaeri
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Leaders stress urgent need for climate finance at COP29 ministerial dialogue

Leaders stress urgent need for climate finance at COP29 ministerial dialogue
Updated 14 November 2024
Nour El-Shaeri

RIYADH: Global climate finance continues to fall short of expectations, as leaders gathered at the COP29 Ministerial Dialogue on Climate Finance to address ongoing challenges and map out next steps.

The meeting, held in Baku, Azerbaijan, underscored the urgent need for increased and more effective funding mechanisms. COP29 President Mukhtar Babayev emphasized that climate finance plays a central role in the broader negotiations.

“The urgency of the situation is evident,” Babayev remarked, pointing to the severe impacts of climate change observed over the past year. “Recently, we witnessed catastrophic flooding in Spain, and in the Pacific region, island communities are faced with the possibility of being wiped out entirely. We must act now; failure to do so will have grave human and economic costs.”

The president stressed the importance of fulfilling the $100 billion-per-year commitment made in Copenhagen and reiterated in Paris, urging leaders to reflect on lessons learned and consider the quality and allocation of financial resources.

Developing countries once again voiced the need for tangible action, with Fiji’s Deputy Prime Minister Biman Prasad highlighting the importance of aligning climate finance with the goals of the Paris Agreement.

“This is a ‘put your money where your mouth is’ moment,” Prasad said. “The 1.5°C temperature goal and the Paris Agreement itself will not be deliverable from both an economic and scientific perspective if we do not invest right. The New Collective Quantified Goal is critical for aligning our priorities and addressing major inconsistencies,” he added.

The EU reaffirmed its commitment to climate finance, noting that the $100 billion goal was first collectively met in 2022, with contributions reaching $115.9 billion.

“The EU and its member states contributed €28.5 billion, or around $30 billion, in climate finance from public sources,” a representative said. “Almost half of the public funding came in the form of grants, with a significant portion provided on concessional terms. We need to make further efforts to facilitate the mobilization of private funding, as it remains a key source of climate finance,” the representative added.

Simon Stiell, executive secretary of the UN Framework Convention on Climate Change, emphasized the critical juncture at which the global community now finds itself.

“The huge opportunities we have and the terrible risks we face are real,” Stiell said. “It’s time to take action to bridge gaps, solve problems, and come together to ensure climate finance and climate action benefit everyone.”

Sweden also announced a significant new contribution, with Ministerial representatives unveiling an $8 billion Swedish krona ($723.6 million) pledge to the second replenishment of the Green Climate Fund.

“This makes Sweden the largest per capita donor to the GCF among the larger donors,” the Swedish representative noted.

As discussions progressed, leaders acknowledged the widening gap between current financial commitments and the funds required to meet the 1.5°C target. There were calls for more robust mobilization of both public and private finance.

The COP29 president concluded: “Delivering the climate fairness that developing countries need is one of the main metrics of shared success. We can learn from past efforts to inform the road ahead, but significant determination and leadership from all parties are required to bridge these critical gaps.”

Topics: COP29 Green & Blue climate

IsDB, multilateral banks aim for $120bn in annual climate finance by 2030

IsDB, multilateral banks aim for $120bn in annual climate finance by 2030
Updated 14 November 2024
Reem Walid
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IsDB, multilateral banks aim for $120bn in annual climate finance by 2030

IsDB, multilateral banks aim for $120bn in annual climate finance by 2030
Updated 14 November 2024
Reem Walid

RIYADH: Multilateral development banks are aiming to mobilize $120 billion annually by 2030 for climate financing in low- and middle-income countries, according to recent projections.

This ambitious funding goal includes $42 billion dedicated to climate adaptation efforts, with an additional $65 billion expected to come from private sector investments.

The target was unveiled in a joint statement issued during COP29 in Baku, Azerbaijan, by several prominent MDBs, including the Islamic Development Bank, African Development Bank, the Asian Development Bank, the Asian Infrastructure Investment Bank, the Development Bank of the Council of Europe, the European Bank for Reconstruction and Development, and the European Investment Bank. Additionally, the Inter-American Development Bank, the New Development Bank, and the World Bank Group are part of the initiative.

The statement emphasized that setting a strong, collective climate finance target is crucial to meeting the goals of the Paris Agreement.

“A new collective quantitative target on climate finance that is both strong and ambitious is essential to achieving the Paris Agreement’s objectives,” the statement read. “We urge parties to reach a robust conclusion on this target.”

For high-income countries, the MDBs have set a target of $50 billion in annual climate finance, including $7 billion specifically for adaptation, with private sector mobilization expected to generate an additional $65 billion. This new target builds on the success of previous climate finance goals, with MDBs already surpassing their climate financing projections for 2025. Since 2019, the MDBs have increased direct climate finance by 25 percent and doubled climate mobilization efforts over the past year.

In response to the urgent need for enhanced climate action, the MDBs also emphasized the importance of establishing a new collective quantitative target for climate finance at COP29. The institutions highlighted their commitment to ensuring that the finance provided leads to meaningful, measurable impacts on both climate mitigation and adaptation.

To further enhance the effectiveness of climate finance, the MDBs released the “Common Approach to Measuring Climate Outcomes,” a framework that provides standardized indicators for tracking global progress on climate mitigation and adaptation. This framework aims to better align MDB activities with global climate goals and improve transparency in measuring outcomes.

Additionally, the MDBs published their “Country Climate Action Platforms,” reaffirming their commitment to strengthening collaboration between host countries, MDBs, donors, and the private sector. These platforms are designed to ensure that climate finance is targeted effectively and that developing countries have the support they need to implement robust climate policies.

COP29 has emerged as a critical moment in global climate negotiations, especially for the Global South, where developing nations are pushing for significant climate financing, stronger adaptation measures, and equitable policy outcomes. These countries continue to advocate for a climate finance framework based on the principle of common but differentiated responsibilities, recognizing that nations’ contributions should reflect their respective capabilities and historical responsibilities.

Topics: COP29 Green & Blue Finance climate

World’s largest green hydrogen plant on track for 2026 launch in Saudi Arabia, CEO says

World’s largest green hydrogen plant on track for 2026 launch in Saudi Arabia, CEO says
Updated 14 November 2024
MANAL AL-BARAKATI
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World’s largest green hydrogen plant on track for 2026 launch in Saudi Arabia, CEO says

World’s largest green hydrogen plant on track for 2026 launch in Saudi Arabia, CEO says
Updated 14 November 2024
MANAL AL-BARAKATI

BAKU: The world’s largest green hydrogen plant, which is under construction in Saudi Arabia, is on-track to begin production in December 2026, the company’s CEO told Arab News.

NEOM Green Hydrogen Company is now 60 percent complete, according to CEO Wesam Al-Ghamdi.

Al-Ghamdi emphasized the ambition of the project, which he described as “being built at a scale no one has attempted before.”

The plant will rely entirely on solar and wind energy to power a 2.2 gigawatt electrolyzer, designed to produce hydrogen continuously, he said.

Green hydrogen, created through electrolysis powered by renewable energy, is seen as a critical component in reducing global carbon emissions, because it produces no greenhouse gases in the production process.

It has broad potential throughout industry, from heavy-duty transport to steel production, where conventional methods rely heavily on fossil fuels. As countries and companies face increasing pressure to decarbonize, green hydrogen is gaining traction as a viable alternative to fossil fuels, despite the challenges of cost and scale that currently limit widespread adoption.

In discussing NGHC’s competitive edge, Al-Ghamdi pointed to the cost advantages tied to NEOM’s renewable resources.

The plant’s reliance on Saudi Arabia’s abundant solar and wind energy reduces production expenses, which are crucial in making green hydrogen more commercially viable.

“We have the abundance of solar and wind, so we have that renewable power competitive advantage,” he said, explaining that the large-scale setup at NEOM allows for efficient production at a cost level that few projects can match globally.

Coupled with a 30-year offtake agreement in place with Air Products, NGHC has secured a pathway for its hydrogen output to reach international markets in ammonia form, making it easier to transport and distribute. This structure reflects a calculated move to meet projected demand from sectors such as heavy transport and industrial manufacturing.

Located within NEOM, NGHC’s project is strategically positioned in Saudi Arabia’s northwest Red Sea development zone, where consistent solar and wind resources provide a substantial cost advantage for energy production. The plant is part of Saudi Arabia’s broader Vision 2030 initiative, led by Crown Prince Mohammed bin Salman, which aims to reduce the Kingdom’s economic reliance on oil by expanding into new industries such as renewable energy, tourism, and technology.

Al-Ghamdi said that staffing the project is key to establishing Saudi expertise in the green energy sector. Currently, more than 60 percent of NGHC’s workforce is composed of Saudi citizens, a mix of experienced industry professionals and recent graduates.

Through partnerships with Saudi universities and special training initiatives, NGHC is working to fill the highly technical roles necessary to operate a facility of this scale.

“Our goal isn’t just to produce hydrogen but to build a foundation of expertise here in Saudi Arabia,” he said, adding that the project seeks to build a lasting skills base in the country.

NGHC has also developed a 10-year research and development partnership with Germany’s ThyssenKrupp to refine and optimize its electrolyzer technology.

The early installation of the project’s first electrolyzer, scheduled to go online ahead of the main facility launch, is expected to provide valuable insights into operational efficiencies.

By testing and optimizing the equipment well in advance of full-scale production, NGHC aims to streamline processes, reduce maintenance costs, and extend equipment life cycles as the plant moves toward its 2026 production target.

While global interest in hydrogen is accelerating, Al-Ghamdi sees NEOM’s project as especially well placed to capitalize on Saudi Arabia’s natural advantages.

“We have the scale, location, and the partnerships in place that give us a significant lead,” he said, describing NGHC as a potential model for Saudi Arabia’s broader push into renewable energy and a significant part of Vision 2030’s economic transformation goals.

Topics: Green & Blue COP29 Green hydrogen climate change Saudi Arabia NEOM Green Hydrogen Company

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IEA sees 2025 oil market in supply surplus

IEA sees 2025 oil market in supply surplus
Updated 14 November 2024
Reuters
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IEA sees 2025 oil market in supply surplus

IEA sees 2025 oil market in supply surplus
Updated 14 November 2024
Reuters

LONDON: The world’s oil supply will exceed demand in 2025 even if OPEC+ cuts remain in place, the International Energy Agency said in its monthly oil market report on Thursday, as rising production outside the producer group is met by sluggish global demand growth.

“Our current balances suggest that even if the OPEC+ cuts remain in place, global supply exceeds demand by more than 1 million barrels per day next year,” the IEA said.

The Paris-based agency left its 2025 oil demand growth forecast little-changed on the month, expecting oil demand to rise by 990,000 bpd next year.

It meanwhile expects non-OPEC+ supply growth to rise by 1.5 million bpd next year, driven by higher output from the US, Canada, Guyana and Argentina.

In its own monthly oil report on Tuesday, OPEC cut its global oil demand growth forecast this year and next, its fourth consecutive monthly downward revision, on weakness in China, India and other regions.

Global demand growth below 1 million bpd this year follows close to 2 million bpd of growth in 2023, the IEA said.

“The sub-1 million bpd growth pace for both years reflects below-par global economic conditions with the post-pandemic release of pent-up demand now complete,” it said.

Waning Chinese demand continues to hit global oil demand growth, with 2024 annual oil demand growth set to reach just 140,000 bpd, the IEA said, a tenth of the 1.4 million bpd demand growth of 2023.

The rapid development of cleaner energy technologies is also increasingly displacing oil, the agency said in its November report. The IEA made a slight upward adjustment to its 2024 oil demand growth forecast, up by 60,000 bpd on the month to 920,000 bpd, on higher-than-expected gasoil demand in OECD countries in the third quarter.

Topics: OPEC+ IEA

COP29: UN Secretary-General calls for urgent collaboration to halt ‘catastrophic’ climate change

COP29: UN Secretary-General calls for urgent collaboration to halt ‘catastrophic’ climate change
Updated 14 November 2024
Miguel Hadchity
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COP29: UN Secretary-General calls for urgent collaboration to halt ‘catastrophic’ climate change

COP29: UN Secretary-General calls for urgent collaboration to halt ‘catastrophic’ climate change
Updated 14 November 2024
Miguel Hadchity

RIYADH: UN Secretary-General Antonio Guterres emphasized the high stakes of climate inaction in a roundtable discussion held during the ongoing COP29 in Baku. 

At the High-Level Event on the stocktake of “Integrity Matters” at the gathering, global leaders convened to discuss the urgent need for climate action, reflecting on progress, challenges, and the role of non-state actors in achieving net-zero commitments. 

“We are racing the clock,” Guterres said, adding that with extreme weather events bringing “human tragedy and economic destruction worldwide,” the global goal of limiting temperature increases to 1.5 degrees Celsius is becoming progressively more challenging to reach.

Reflecting on the achievements so far, the secretary-general acknowledged the scale of efforts already made, saying: “We did a massive global effort to steer our world onto a pass-through safety, a pass to net zero by mid-century.” 

However, he underscored that these efforts will only bear fruit if supported by stronger collaboration across sectors. Guterres urged “businesses, financial institutions, cities, regions, and more” to align with national governments on climate action plans and make coordinated strides toward decarbonization. 

“We must make sure that governments facilitate the work of other actors in this regard, and not that they complicate the work of other actors in compliance with the 1.5 aligned future,” he said.

In a show of support for the gathered climate leaders and activists, Guterres said: “Time is racing, and you are on the right side of history, and I’m very glad to be here with you.” 

Yet he issued a reminder that while a low-carbon transition is inevitable, “doesn’t mean that it will come on time.” 

He stressed that if delays continue, the consequences for the planet could be catastrophic. 

Brazilian Vice President Geraldo Alckmin also addressed the assembly, outlining his country’s continued dedication to combating global warming through policies targeting deforestation and renewable energy. 

“Brazil has a commitment to fighting climate change,” Alckmin said, adding that in the past two years, the country had achieved a significant 45.7 percent reduction in deforestation rates. 

He detailed Brazil’s efforts to shift toward greener fuels, with 15 percent of the nation’s diesel now comprising biodiesel, a fuel derived from plant oils. Alckmin highlighted that Brazil’s ethanol usage in gasoline, which currently stands at 27 percent, is set to increase to 35 percent in the near future. 
 
Additionally, the South American country is aiming to position itself as a leading producer of sustainable aviation fuel, which could replace kerosene in the flight industry, as part of its broader commitment to green energy. “Brazil will be prepared to be a major producer of SAF ethanol,” he said.

Helena Vines Fiestas, chair of the EU Platform on Sustainable Finance, provided an update on climate policies among the G20 countries, highlighting a surge in policies geared toward supporting non-state actors in their net-zero transitions. 

“All G20 countries now have policies, or some form of policies, to support the transition of non-state actors to net zero further. The number of policies has tripled since 2020,” she reported. 

Fiestas emphasized that while considerable work remains, the international community has demonstrated that net-zero regulation is feasible. “Progress is clear,” she said. “Work lies ahead, but the leaders have demonstrated that regulating on net zero is doable.”

Executive Secretary of the UN Framework Convention on Climate Change Simon Stiell highlighted a new initiative aimed at strengthening transparency in environmental action. He announced that the UNFCCC’s Global Climate Action Portal is undergoing redevelopment to provide better accountability in tracking commitments. 

He shared that the portal would be relaunched shortly after COP29 concludes, and he emphasized the role of the entire global community in driving this agenda forward. 

Washington State Governor Jay Inslee addressed the concerns around recent political shifts in the US, asserting that state-level commitments to climate action would remain the same 

“I know there’s concern about the last election last Tuesday, but I want to make it really clear, if you take anything home from this meeting, this election will not stop, will not slow down, and will not retire the absolute commitment of states to lead this battle against climate change,” he affirmed. 

He added: “Donald Trump can do anything he wants, but he cannot stop me from committing to (tackling) climate change in my state.”

Catherine McKenna, chair of the UN High-Level Expert Group on Net-Zero Emissions Commitments of Non-State Actors, emphasized the urgency of high-integrity net-zero plans in her latest report, titled “Integrity Matters: The Hard Work is Now,” presented during the session. 

“The leaders highlighted in this review show that high-integrity net zero can be achieved. It’s no longer credible for companies, investors, cities, and regions to claim that moving faster on the climate crisis is too difficult or expensive,” McKenna said. She further urged a “much broader range” of stakeholders to establish comprehensive transition plans by 2025.

McKenna’s report, commissioned by Guterres, underscored that while voluntary net-zero pledges have risen, there remains a significant gap in alignment with rigorous standards, particularly in the phasing out of fossil fuels. 

“Voluntary efforts are not sufficient for the scale and pace of change we need to see,” McKenna said, advocating for stronger governmental regulations to ensure credible climate commitments and promote competitive investments. 

She added: “Every fraction of a degree matters, and every tonne of CO2 makes a difference. We must do the hard work now, or we will all face the consequences tomorrow.”

Guterres closed with a reminder of the significant obstacles that remain on the path toward net-zero goals. “We need not only to do the right thing, but we need to fight those that are trying not to allow us to do the right thing,” he said. 
 

Topics: COP29 Green & Blue UN Secretary-General Antonio Guterres

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