Cooperation is needed to speed green development and save the planet

Cooperation is needed to speed green development and save the planet

Cooperation is needed to speed green development and save the planet
The decision to hold COP29 in Azerbaijan was made on Dec. 11 at the COP28 plenary session hosted by the UAE. (AFP)
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First, we are proud that Azerbaijan has been chosen to host the COP29 UN climate change conference, and we understand the great responsibility that comes with it.

One of the most serious problems affecting the living world is climate change. The causes of climate change include natural factors such as astrophysical, geophysical and physical processes that periodically occur in the sun, changes that occur during the Earth’s movement around the sun, the swaying of the north and south poles, volcanic eruptions, and human impacts on nature.

According to the World Meteorological Organization, 80-85 percent of natural disasters occurring in the world are associated with abnormal hydrometeorological phenomena caused by climate change.

Azerbaijan has joined the fight against global climate change by joining the United Nations Framework Convention on Climate Change.

The decision to hold COP29 in Azerbaijan was made on Dec. 11 at the COP28 plenary session hosted by the UAE. The adoption of this decision once again shows that the efforts of Azerbaijan in combating climate change, despite being known as an oil and gas country, are highly appreciated.

In short, Azerbaijan’s hosting of COP29, one of the largest events in the world, is another victory for President Ilham Aliyev. At the same time, it is a strong response to those that have been waging an ugly campaign against Azerbaijan recently.

The time we had to prepare for COP29 is very limited. In previous cases, the host countries started their preparations more than a year before the conference. But in our case, the decision to host the conference was made very late, which left us less than a year to prepare.

Since the decision to host the conference, we have formed our team and started our outreach activities. So far, our appointed COP President Mukhtar Babayev, lead negotiator Yalchin Rafiyev and other team members have visited many countries and attended a number of international events.

We all know that the climate change that we have witnessed in recent years has a negative impact on every country, including people’s lives

Shahin Abdullayev, Ambassador of the Republic of Azerbaijan to the Kingdom of Saudi Arabia

It should be noted that, in addition to Azerbaijan, Armenia and Bulgaria also put forward their candidacy to host COP29. As a result of direct negotiations between the administration of the president of the Republic of Azerbaijan and the office of the prime minister of Armenia, it was announced in a joint statement on Dec. 7 last year that Armenia withdrew its candidacy in favor of Azerbaijan. Later, Bulgaria also took the same step regarding its candidacy.

2024 was declared the “Year of Solidarity for a Green World” in Azerbaijan. Our country has developed a plan to reduce greenhouse gas emissions by 35 percent by 2030, and by 40 percent by 2050 compared to 1990 levels. After being liberated from occupation, Karabakh and East Zangazur, as well as the Nakhchivan Autonomous Republic, were declared green energy zones. The creation of green energy types in these regions and the transfer of green energy to other countries of the world is the priority of Azerbaijan’s targeted energy policy.

We all know that the climate change that we have witnessed in recent years has a negative impact on every country, including people’s lives. In accordance with the Paris Climate Agreement, global warming must remain at or below 1.5 degrees Celsius, as it was before industrialization, to mitigate these impacts.

The COP measures are intended to achieve progress in limiting global warming to 1.5 degrees Celsius. The target is to bring all parties together under this initiative to take substantial, flexible and sustainable actions to reduce emissions to keep global warming under control; and the increase in temperatures below 1.5 degrees Celsius. To achieve this target, the Paris Climate Agreement requires countries to submit their national contributions. Within the framework of these contributions, countries prepare plans to reduce carbon emissions, increase energy efficiency, switch to renewable energy sources, and take other relevant measures. Countries must update these plans every five years and take the necessary steps to adapt to climate change.

According to research from the Global Commission on Adaptation, efforts to combat climate change are capable of attracting $7.1 trillion worth of investment. This will not only prevent future costs from rising but will also stimulate innovation and provide many additional social benefits. Therefore, all countries need to take urgent and coordinated action to achieve the 1.5 degrees Celsius goal. This is not only essential to avoid the catastrophic consequences of climate change, but can also bring significant social and economic benefits in the long term.

On Dec. 15, 2023, a meeting was held under the chairmanship of the President of the Republic of Azerbaijan Ilham Aliyev on holding COP29 in this country. President Ilham Aliyev said: “Our country has achieved another great success, and the international conference COP29 will be held in Baku, the capital of Azerbaijan. All countries of the world have accepted this decision, which means great trust and respect for Azerbaijan has been shown once again.”

We deserve it, and as a result of our policy, we have gained very strong positions at the global level. Respect for Azerbaijan in the international world is growing day by day, and we have earned this respect with our actions, work and policies. Our independent policy, principled position, commitment to international law, loyalty and, at the same time, restoration of sovereignty over the country’s territory have increased respect for us. The significance of this event is that the entire international community has expressed its support for Azerbaijan.

This is not the first time. We have successfully chaired the Non-Aligned Movement for four years, and here too our chairmanship was made possible thanks to the support of 120 countries, and our chairmanship was even extended for one year. This was already a great indicator; 120 countries of the world expressed their support for Azerbaijan. This time, all countries of the world showed this support.

We have no doubt that we will hold the international conference COP29 at the highest level, and it will be the next great success for our country and our people. At the same time, Azerbaijan will show itself in this area as an oil and gas country, and everyone in the world will once again see that our agenda is connected with green energy. The creation of green energy types and the transfer of green energy to world markets are currently a priority of our energy policy. This is the reality and the whole world will see it again.

Hosting COP29 can be considered the most important event of 2024 for Azerbaijan and a logical continuation of the country’s strategy for transition to a green economy. In accordance with this mission, 2024 was declared the “Year of Solidarity for the Green World” in Azerbaijan by the decree of the President of the Republic of Azerbaijan Ilham Aliyev.

According to the Ministry of Energy, the technical potential of renewable energy sources in our country is 135 GW on land and reaches 157 GW at sea. The economic potential of renewable energy sources is 27 GW, including 3GW of wind energy, 23GW of solar energy, and 380 MW of bioenergy.

The potential of mountain rivers is estimated at 520MW. By the Decree of President Ilham Aliyev on Feb. 2, 2021, “Azerbaijan 2030: National Priorities of Socio-Economic Development,” the strategic foundation for the country’s renewable energy production policy was laid. This foundation sets new plans for the transition to a green economy. The Ministry of Energy of Azerbaijan is closely cooperating with ACWA Power from Saudi Arabia and Masdar from the UAE on the implementation of several pioneering projects in renewable energy.

On Jan. 13, 2022, the groundbreaking ceremony of the Khizi-Absheron windpower plant was held at the Golestan Palace with ACWA Power. On March 15, 2022, four memoranda of understanding were signed with Masdar as part of the groundbreaking ceremony of the Qardagh solar power plant in Baku. At the same time, the president of the Republic of Azerbaijan declared the liberated territories of our country as “green energy” zones, and the action plan for 2022-2026 was approved. It is planned to transform these areas into “net-zero emissions” zones by 2050.

COP29 will benefit from the momentum gained by COP28 in Dubai. We will strengthen our collective cause in Baku and, in the process, we will prepare Belem COP30 for success. It is now our duty to help guide the international community toward a climate-focused future that is characterized by justice and sustainability.

One of the most important topics we will address at COP29 is finance. We will strive to mobilize the necessary financing for climate-change mitigation, adaptation and loss and damage reduction. This will require a joint effort by all stakeholders, including countries, international organizations, international financial institutions and the private sector.

Achieving our hopes requires the combined efforts of all members of the international community, in cooperation with the UN. The consensus at COP28 was reached through inclusive dialogue, crucial negotiations and a commitment to pluralism. The key to achieving consensus is only through a climate that allows all voices to be heard and respected, regardless of geographical location, space or economic status.

In conclusion, we would like to mention that the COP is one of the most important events in the world in the fight against climate change. The choice of Azerbaijan to host this event by a unanimous decision of the countries of the Eastern European Group demonstrates the high confidence in our country. Azerbaijan has already gained a sufficiently positive image in hosting international events.

The decision to hold the event in Azerbaijan is also important because it was taken two and a half months after the domestic anti-terrorist measures in Azerbaijan. This shows the support of the international community for the steps taken by Azerbaijan. This event will demonstrate to the world how Azerbaijan sees the green economy as a priority area, in addition to being an oil and gas country. Holding this event in Baku will give a great impetus to increasing Azerbaijan’s reputation and conveying the country’s reality directly and easily to the international community.

Shahin Abdullayev is the Ambassador of the Republic of Azerbaijan to the Kingdom of Saudi Arabia

Disclaimer: Views expressed by writers in this section are their own and do not necessarily reflect Arab News' point of view

Explosions heard in vicinity of Palmyra in Syria, state news agency says

Explosions heard in vicinity of Palmyra in Syria, state news agency says
Updated 3 sec ago
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Explosions heard in vicinity of Palmyra in Syria, state news agency says

Explosions heard in vicinity of Palmyra in Syria, state news agency says
DUBAI: Explosions were heard on Wednesday in the vicinity of Palmyra in central Syria, the Syrian state news agency reported.

Putin gifts North Korea a lion, bears and ducks

Putin gifts North Korea a lion, bears and ducks
Updated 2 min 50 sec ago
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Putin gifts North Korea a lion, bears and ducks

Putin gifts North Korea a lion, bears and ducks
Moscow: Russian President Vladimir Putin has gifted North Korea dozens of animals, including a lion and two bears, as a sign of friendship between Moscow and Pyongyang, Russian officials said Wednesday.
The two countries have deepened political, military and cultural ties amid Russia’s offensive on Ukraine, with Putin and North Korean leader Kim Jong Un repeatedly professing their personal camaraderie.
“An African lion, two brown bears, two domestic yaks, five white cockatoos, 25 pheasants of various species and 40 mandarin ducks were transferred from the Moscow Zoo to the Pyongyang Zoo,” Russia’s natural resources ministry said in a post on Telegram.
It posted a video of the animals in cargo boxes being unloaded off a government plane, and another of the lion in its new enclosure at the Pyongyang Zoo.
Putin previously gifted Kim 24 purebred horses, known to be Kim’s favorite, while Kim sent Putin a pair of local dogs.
The two countries, both under heavy Western sanctions, signed a mutual defense pact earlier this year that obligates them to provide immediate military assistance if the other is invaded.
Western capitals, as well as Ukraine and South Korea, say North Korea has recently deployed more than 10,000 of its troops to Russia, to be sent into combat against Kyiv’s forces.

Saudi economic growth to accelerate to 4.7% in 2025: Moody’s

Saudi economic growth to accelerate to 4.7% in 2025: Moody’s
Updated 5 min 20 sec ago
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Saudi economic growth to accelerate to 4.7% in 2025: Moody’s

Saudi economic growth to accelerate to 4.7% in 2025: Moody’s

RIYADH: Saudi Arabia’s economy is set to grow by 1.7 percent this year, before accelerating to 4.7 percent in 2025 and 2026, driven by government-backed projects aimed at diversifying the Kingdom’s economy, according to Moody’s. 

The credit rating agency’s forecast exceeds previous estimates, including the Saudi government’s own 2024 gross domestic projection of just 0.8 percent. Moody’s outlook surpasses the Kingdom’s pre-budget statement, which had estimated a 4.6 percent growth in 2025. 

The 2025 forecast aligns with Saudi Arabia’s planned expenditure for the year, set at $343 billion, underscoring the government’s commitment to economic expansion through Vision 2030. These efforts focus on diversifying the economy beyond oil, with major investments in sectors like technology, tourism, renewable energy, and infrastructure. 

“In the Middle East, hydrocarbon-exporting countries are seeking to diversify their economies away from oil. Government-backed projects tied to this aim will drive strong growth in Saudi Arabia next year,” said Moody’s in its latest report. 

The Kingdom’s strategy centers on large-scale “giga-projects” funded by its Public Investment Fund, including the development of the futuristic city NEOM. These initiatives are expected to play a crucial role in sustaining economic growth over the coming years. 

Moody’s positive projections align with last month’s forecasts from the International Monetary Fund, which predicted 1.5 percent growth for Saudi Arabia’s economy in 2024 and 4.6 percent in 2025, while the World Bank forecasted 1.6 percent growth this year and 4.9 percent in 2025. 

Stable inflation 

Moody’s analysis noted that Saudi Arabia’s inflation rate is expected to remain stable at 1.6 percent in 2024 and 1.9 percent in 2025, before rising slightly to 2 percent in 2026. 

Earlier this month, Saudi Arabia’s General Authority for Statistics reported that inflation reached 1.9 percent in October compared to the same month in 2023. 

The Kingdom’s inflation rate remains among the lowest in the Middle East, reflecting effective measures to stabilize the economy and counter global price pressures. 

In September, S&P Global forecasted Saudi Arabia’s economy to grow by 1.4 percent in 2024 and 5.3 percent in 2025, driven by the Kingdom’s diversification strategy. 

Regional outlook

The report projects that the UAE, Saudi Arabia’s Arab neighbor, will see its economy grow by 3.8 percent in 2024 and 4.8 percent in 2025. 

Moody’s forecasts that inflation in the UAE will remain higher than in Saudi Arabia, at 2.3 percent in 2024 and 2 percent in 2025. 

The analysis also predicts Egypt’s economy will expand by 2.4 percent this year, accelerating to 4 percent in 2025. However, Egypt is expected to face a high inflation rate of 27.5 percent in 2024, dropping to 16 percent in 2025. 

Emerging markets 

The broader outlook for emerging markets is positive, with Moody’s noting that economic growth is stable and inflationary pressures are easing. 

The credit agency expects conditions to improve in 2025, driven by steady growth, declining inflation, and monetary easing in both developed and emerging economies. However, credit risks remain a concern, with tighter credit spreads and rising bond issuance reflecting investor appetite for emerging market assets. 

“In 2025, credit conditions within emerging markets are expected to further stabilize, driven by steady economic growth, slowing inflation, and monetary easing in developed and emerging markets,” said Vittoria Zoli, analyst at Moody’s Ratings. 

She added that these conditions are expected to facilitate refinancing and cash flow growth, while reducing asset risk. “However, credit risks persist,” said the analyst. 

Emerging markets such as India are projected to continue growing strongly, with the Indian economy forecast to expand by 7.2 percent in 2024 before moderating to 6.6 percent in 2025. In contrast, China’s growth is expected to slow to 4.2 percent in 2025, following a 4.7 percent growth in 2024. 

At the regional level, economic growth is expected to remain highest in the Asia-Pacific region. The report states that India and Southeast Asian countries will continue to benefit from the global reconfiguration of supply chains, as nations and companies diversify trade and investment away from China. 

Moody’s noted that the situation in Latin America is mixed, though growth will remain strong compared to the past decade. Economic growth in countries like Mexico, Argentina, and Brazil is projected to slow in 2025, while smaller economies like Chile, Colombia, and Peru will see steady expansion. 

“We expect aggregate gross domestic product growth for 23 of the largest emerging market economies will slow to 3.8 percent in 2025 from 4.1 percent in 2024, with continued wide variation by region and country,” said the credit rating agency. 

Moody’s attributed this slight slowdown to dampened growth in China, although it noted that domestic demand will drive growth in smaller emerging markets. 

In October, the IMF projected that emerging market economies would see a GDP growth rate of 4.2 percent in both 2024 and 2025. 

Moody’s report emphasized that governments in emerging markets are benefiting from stabilizing GDP growth and easing financial conditions, though debt levels remain high. 

“Emerging markets governments’ average ratio of debt to GDP will decrease slightly next year as lower interest rates and stronger revenues help to narrow budget deficits. But mandatory spending – including on debt obligations – limits fiscal improvements,” said Moody’s. 

It added: “One key risk to the EM outlook is the potential for US policy changes. In particular, an expansion of tariffs or renegotiation of existing trade agreements would likely disrupt global trade, hinder global economic growth, increase commodity-price volatility and subsequently weaken emerging markets currencies.” 

Banking outlook 

According to the report, banks in the Gulf Cooperation Council region have strong growth prospects, driven by government efforts to expand the non-energy sector. 

Earlier this month, Moody’s stated in another report that Saudi Arabia’s Vision 2030 program, aimed at diversifying the Kingdom’s economy, will accelerate the growth of the banking sector in the coming years. 

The analysis also highlighted that the development of major projects in the Kingdom, along with the infrastructure required to host events such as the 2027 Asia Cup, 2029 Asian Winter Games, Expo 2030, and the 2034 FIFA World Cup, are expected to create significant business and lending opportunities for banks. 

Moody’s noted that the operating environment for banks in emerging economies will remain largely stable, supported by steady GDP growth and policy-rate cuts, which will boost credit growth and asset quality. 

However, the credit rating agency warned that profitability may decline for banks in several countries due to imbalances in interest rate adjustments between loans and deposits. 

The report also cautioned that geopolitical tensions and potential shifts in US policy could affect the credit risks of banks in emerging economies. 

“Profitability will deteriorate for many banks because they typically reduce interest rates on loans faster than on deposits as they seek to attract and retain customers. This squeezes net interest margins,” said Moody’s. 

It added: “Geopolitical conflicts and resulting restrictions on cross-border and investment flows are a significant credit risk for EM banks. And the potential for postelection changes to key US policies, including financial and technology regulation, could alter the operating environment.” 


Saudi industrial, mining sectors offering lucrative opportunities for entrepreneurs, minister says

Saudi industrial, mining sectors offering lucrative opportunities for entrepreneurs, minister says
Updated 18 min 15 sec ago
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Saudi industrial, mining sectors offering lucrative opportunities for entrepreneurs, minister says

Saudi industrial, mining sectors offering lucrative opportunities for entrepreneurs, minister says

JEDDAH: Saudi Arabia’s industrial and mining sectors are harboring promising opportunities for youth and entrepreneurs, the Kingdom’s industry minister has insisted.

Speaking during the Misk Global Forum 2024 in Riyadh, Bandar bin Ibrahim Alkhorayef said that these opportunities go beyond direct investment to include the development of innovative ideas to improve production efficiency, manufacturing quality, and energy conservation in industrial facilities.

He explained that institutions working in industrial and mineral resources have introduced a range of enablers and initiatives to support the growth of entrepreneurial ventures and facilitate investment for young innovators in both sectors, according to the Saudi Press Agency.

The Kingdom ranked third in the Global Entrepreneurship Monitor report for 2023-2024 – a study which assesses the ecosystems of countries worldwide.

Saudi Arabia showed significant progress, with its National Entrepreneurship Context Index score increasing from 5 in 2019 to 6.3 in 2022 and 2023.

The analysis highlighted that this reflects the country’s successful efforts to diversify its economy and foster a supportive climate for business owners. The report also underlined female entrepreneurship, with eight women starting new companies for every 10 men in 2023.

Alkhorayef added that the introduced programs include financial solutions, including the 1K Miles program, designed to help entrepreneurs turn ideas into projects, and the Industrial Hackathon, which allows young innovators to present creative solutions to challenges faced by industrial facilities.

The minister further highlighted that the Kingdom has become a global hub for entrepreneurs, offering them the opportunity to pitch innovative ideas and test their success. He emphasized that the government’s unwavering support for youth creates vast opportunities for the success of their projects.

He emphasized that Saudi Arabia has recently focused on leveraging its strategic assets to develop its industrial sector and boost competitiveness. This includes utilizing its natural resources and technological advancements to compete globally in emerging industries and establish itself as a key player in international supply chains.

During the previous day’s event, the Co-Chair of the Bill and Melinda Gates Foundation, Bill Gates, highlighted the crucial role of innovation in addressing global development challenges and improving the quality of life for vulnerable populations.

Gates emphasized the importance of investing in technology and education as the foundation for a sustainable future, underlining that such investments empower future generations to positively impact their communities.

He praised Saudi Arabia’s leadership in empowering youth, highlighting initiatives like MGF 2024, which focuses on developing young people’s skills and promoting innovation and entrepreneurship. He called the forum a global model worthy of emulation.

Gates also called for strengthened international cooperation to develop joint solutions addressing current challenges.

The co-chair underscored the importance of fostering creativity, teamwork, and collective thinking to build a more sustainable future, highlighting that global collaboration could drive transformative advancements that improve the lives of millions.

The MGF 2024 announced the launch of the “Misk Grand Challenges” initiative in partnership with the Gates Foundation, aiming to inspire young people to propose innovative solutions to global education and citizenship issues, fostering creativity and engaging brilliant minds to address pressing development challenges.

During a panel discussion at the forum, Abdullah Al-Saleem, CEO and co-founder of Mushtari, offered valuable insights on when and how entrepreneurs should seek guidance for their ventures.

“Every time is the right time to seek help,” Al-Saleem said, emphasizing the importance of continuous learning and consultation in business development.

He advocated for a two-pronged approach to seeking advice, distinguishing between general business consultants and industry-specific experts.

“There are two people you have to seek help from: People that know generally about the industry, and people that know specifically about the industry,” he added.


Erdogan says Turkiye prepared if US withdraws from Syria

Erdogan says Turkiye prepared if US withdraws from Syria
Updated 17 min 53 sec ago
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Erdogan says Turkiye prepared if US withdraws from Syria

Erdogan says Turkiye prepared if US withdraws from Syria

ISTANBUL: President Tayyip Erdogan said Turkiye is prepared if the United States decides to withdraw troops from northern Syria, broadcaster CNN Turk and other media cited him as saying on Wednesday.
In an interview with reporters on his way back from the G20 summit in Brazil, Erdogan said Turkiye’s security is paramount and it is holding talks with Russia on the issue of Syria.