NEW YORK: The White House clashed with environmentalists on Wednesday over President Donald Trump’s retreat from tough future auto emission standards, with both sides predicting potentially big consequences for America’s car fleet.
Appearing in Detroit, Trump ordered a review of the Obama administration’s decision in January to finalize stiff fuel economy standards for the 2022-2025 period.
Trump cast his decision as a defense of American jobs, while his new Environmental Protection Agency administrator, Scott Pruitt — an avowed skeptic of climate-change science — decried the rules as “costly for automakers and the American people.”
But the Natural Resources Defense Council warned the move would lead to a proliferation of gas guzzlers, while Senate Democratic leader Charles Schumer called the decision “one of the first steps in an all-out assault by the Trump administration to dismantle important environmental protections.”
Although Trump’s action opens the door to a potentially big change, auto industry experts said it is more likely the actual consequences will turn out to be less monumental than suggested by the rhetoric on both sides.
“It’s safe to assume, I imagine, we’ll have a less strict proposal sometime in the future,” said David Whiston, an auto industry equity analyst at Morningstar who predicted major investments in hybrid and more efficient internal combustion technology would have lasting impacts.
“Long term, companies are still going to invest in electric, and plug-in hybrids and hydrogen regardless of what these rules are.”
US automakers have already sunk large amounts into factories and technology programs to meet tough fuel economy standards in America and other key markets, such as Europe and China, the International Council on Clean Transportation (ICCT) said.
“Anything that puts the US 2025 standards at risk carries with it the risk that the US could once again become a relative technology laggard in the industry, with clear implications for US-based companies’ competitive position,” the think-tank said.
Trump’s move on Wednesday concerns a deal originally struck between Barack Obama and many leading automakers in 2011 that envisioned a series of gradual increases through 2025, when average fuel economy would rise to 54.5 miles per gallon.
To meet the standards, automakers have adopted lighter-weight materials such as aluminum and structural tweaks to promote better aerodynamics, among other moves.
As part of the agreement, the auto industry won a promise for a “midterm evaluation” of the deal scheduled for 2018 to assess the standards in light of technological changes and business conditions.
Obama administration officials finalized the review and upheld the standards in their final days in office, drawing criticism from the industry, which argues the rules are costly and out of step with current market dynamics, including the rising popularity of light trucks in the US.
Automakers cheered Trump’s move Wednesday.
“By restarting this review, analysis rather than politics will produce a final decision consistent with the process we all agreed to... for greenhouse gases and fuel economy standards,” said Mitch Bainwol, president of the Alliance of Automobile Manufacturers.
Efraim Levy, an auto industry analyst at the research group CFRA, said relaxing the rules should result in lower costs for automakers that can be passed on to consumers, boosting sales.
At the same time, analysts predict automakers will continue to invest heavily in hybrids and other fuel-efficient and electric vehicles to meet changing consumer tastes in an era when companies like Tesla are pushing the envelope with electric cars.
Pressure is also coming from US states that have adopted tough environmental rules, especially California, which has taken advantage of a provision under the Clean Air Act that permits states to set fuel emissions standards that go beyond federal rules.
An effort by the Trump administration to challenge California’s authority would almost certainly wind up in court, where it would create a legal quagmire.
“As much as automakers might want some leniency from the standards, they don’t want leniency with much greater uncertainty,” ICCT program director Nic Lutsey said.
One outcome of the review could be greater leniency in how automakers are tested for fuel economy, he said, permitting more technologies that boost fuel economy but are difficult to account for during the rule-setting process.
More gas guzzlers due to Trump? Not necessarily
More gas guzzlers due to Trump? Not necessarily
Closing Bell: Saudi main index closes in red at 11,867
RIYADH: Saudi Arabia’s Tadawul All Share Index declined on Wednesday, shedding 7.99 points, or 0.07 percent, to close at 11,867.92.
The total trading turnover of the benchmark index was SR4.78 billion ($1.27 billion) with 88 of the listed stocks advancing, while 141 declined.
Saudi Arabia’s parallel market Nomu, however, gained by 0.98 percent to 29,859.11.
The MSCI Tadawul Index marginally slipped 0.49 points to close at 1,491.34.
The best-performing stock of the day was Al-Baha Investment and Development Co., with its share price increasing by 7.14 percent to SR0.30.
Fawaz Abdulaziz Alhokair Co.’s share price rose by 8.29 percent to SR14.10, while Development Works Food Co.’s stock surged by 6.85 percent to SR131.
Conversely, Saudi Chemical Co. recorded the biggest drop, falling 2.90 percent to SR9.71.
On the parallel market, the top performer was Dar Almarkabah for Renting Cars Co., with its share price surging 15.45 percent to SR50.80.
Saudi Investment Bank announced the launch of its US-denominated additional tier 1 capital sustainable sukuk under its sukuk program.
In a statement to Tadawul, the bank revealed the appointment of Alistithmar for Financial Securities and Brokerage Co., Citigroup Global Markets Limited, HSBC Bank, and JP Morgan Securities as joint lead managers.
It also appointed Goldman Sachs International, MUFG Securities EMEA plc, Arqaam Capital Limited, and Standard Chartered Bank as bookrunners.
The offering, available to eligible investors in Saudi Arabia and internationally, commenced on Nov. 20 and is scheduled to close on Nov. 21.
With a minimum subscription of $200,000, the sukuk will be perpetual and callable after five years.
Saudi Investment Bank’s share price rose 2.65 percent to SR13.58.
Knowledge Tower Trading Co. has announced a board resolution to transfer from the parallel market to the main market, subject to market approval and fulfillment of all regulatory requirements.
Following the announcement, the company’s share price saw a significant increase of 7.20 percent, closing at SR10.90
Tourism seen as key to advancing global climate action, UN official says
RIYADH: Tourism presents a significant opportunity to advance global climate action, said a senior UN official, urging nations to integrate tourism into climate policies.
Speaking in Baku, Nigar Arpadarai, COP29 UN Climate Change high-level champion, emphasized the need for countries to integrate tourism into national climate policies, highlighting Azerbaijan’s progress in implementing this approach.
This comes on the back of a 2019 UN report showing a 60 percent rise in transport-related emissions from tourism between 2005 and 2016, which accounted for 5 percent of global CO2, with projections for a 25 percent increase by 2030.
“Climate change threatens parts of the tourism industry. Tourism is, therefore, an opportunity for both development and enhanced climate action,” Arpadarai said.
“Azerbaijan has advanced sustainability within its own tourism strategy. Building on its experience, the COP29 Presidency is focused on promoting sustainability and resilience in tourism, and we are urging countries to integrate tourism into national climate policy,” she added.
Arpadarai called on parties to join in this effort by signing the COP29 Declaration on enhanced action and tourism.
She further noted that Tourism Day aims to lay the foundations for a holistic approach to sustainable tourism.
“We encourage all stakeholders to join in this effort as we consider solutions to this key pillar of growth and development,” Arpadarai added.
Also speaking during the same conference, Kanan Gasimov, head of the administration at Azerbaijan’s State Tourism Agency, highlighted how the COP29 host is leading efforts to integrate climate considerations into its tourism policies.
“We are committed to driving meaningful change. Tourism is not only a key pillar of our economy but also deeply tied to our rich culture and natural heritage,” Gasimov said.
“We now understand that the future of our destinations depends on the sustainability of our actions today,” he added.
Gasimov also noted that through initiatives like the Baku Declaration, Azerbaijan is determined to position tourism as a force for positive climate impact, both within the country and globally.
“With the momentum we’ve built at COP29, I’m confident that we can achieve transformative change,” he said.
Zorista Urosevic, executive director of UN Tourism, who also attended the conference, emphasized that tourism, recognizing its vulnerability to climate change and its impact on ecosystems, is committed to adopting low-carbon, climate-resilient models aligned with sustainable development goals.
“The launch of the Baku Declaration on enhanced climate action in tourism, promoted by the COP29 presidency, underscores this commitment,” she said.
“Over 50 governments endorsed the Baku Declaration in the last 20 days as well as some non-state stakeholders, and it is planned to continue collecting endorsements until and before COP30,” Urosevic added.
COP29 represents a pivotal moment in global climate negotiations, particularly for the Global South.
Developing nations are poised to continue their fight for substantial climate finance, robust adaptation strategies, and equitable policy outcomes within the framework of common but differentiated responsibilities, based on the respective capabilities of nations.
Expectations are high as delegates discuss topics including carbon emissions reduction, sustainable development, and the integration of climate resilience into national policies.
Saudi CMA seeks feedback on foreign investment and market access reforms
RIYADH: Saudi Arabia’s Capital Market Authority is seeking to attract more foreign investments and improve market accessibility by inviting feedback on proposed amendments to account procedures.
The proposed changes aim to align the Kingdoma’s capital market with global regulatory and technological advancements, making it easier for local and international investors to open accounts.
The body is looking for feedback on the proposals, which also include opening doors for non-profit organizations and endowments to invest, diversifying the base.
The consultation period will last for 30 days, ending on Dec. 20.
Key changes include the introduction of a new category allowing individual foreign investors residing in the Gulf Cooperation Council countries to invest in shares listed on the Saudi main market directly.
“As global markets continue to expand and evolve, the next phase necessitates enhancing the international presence of the Saudi capital market and increasing its appeal to investors across the region,” according to data revealed by CMA to Arab News.
The data also highlighted that, in practical terms, the CMA has been working to remove regulatory challenges and develop mechanisms to foster the growth of foreign investments in the Saudi capital market.
This comes as the CMA also seeks public feedback on amendments to investment fund regulations particularly in the retail market. The changes aim to improve protections for retail investors, building on the 2021 rule that allowed individual investments up to SR200,000 ($53,245).
Previously, these backers were limited to trading in the debt market, the parallel market Nomu, investment funds, and derivatives, with their main market involvement restricted to swap agreements through capital market institutions.
The proposed amendments will provide these investors with direct access to the main market, potentially attracting more foreign capital, enhancing liquidity, and supporting the local economy.
The CMA is also seeking to simplify the process for opening and operating investment accounts for various types of capital market institution clients.
This includes easing the requirements for endowments, further broadening the investor base, and enhancing access to the Saudi market.
These reforms reflect the Kingdom’s ongoing efforts to modernize its capital market, making it more inclusive, competitive, and appealing to local and international investors.
The CMA is enabling former residents of Saudi Arabia and the GCC to retain access to the market even after relocating, boosting investor confidence.
The authority’s proposal also opens doors for non-profit organizations and endowments to invest, diversifying the investor base.
According to CMA’s data to Arab News, by the end of the first half of 2024, the value of foreign ownership in the capital market had reached SR402.43 billion, increasing by approximately 5.6 times since Dec. 2015, the year foreign investment was first allowed in the Saudi capital market.
In Dec. 2015, the value was SR72.15 billion, reflecting the various facilitations provided by the market, which contributed to attracting these investments.
“The Saudi Market continues to develop regulatory frameworks and supportive laws to attract foreign investments, promote inclusion in global indices, and offer attractive investment opportunities for international investors,” CMA’s data emphasized.
Through adopting various strategic initiatives, the aim is to diversify the investor base and participants in the market, helping the Saudi capital market to become a leading regional and global financial hub.
On Nov. 13, CMA approved its largest regulatory overhaul to date for the sukuk and debt instruments market, marking a significant step in the country’s financial sector development.
The newly approved changes introduce key amendments to the rules on the offer of securities and continuing obligations, particularly related to the issuance of debt instruments.
These adjustments simplify prospectus requirements for public, private, and exempted offerings, streamlining the process and reducing regulatory burdens.
The changes will take effect as soon as they are published and are designed to attract a wider range of issuers and foster deeper investment in the market.
OPEC chief tells COP29 oil is a gift from God
BAKU: OPEC Secretary-General Haitham Al-Ghais on Wednesday told the COP29 climate summit in Baku that crude oil and natural gas were a gift from God, and that global warming talks should focus on cutting emissions not picking energy sources.
His words echoed those of Azerbaijan President Ilham Aliyev, who used his opening address to the summit to hit back at Western critics of his country’s oil and gas industry, and also described those resources as a gift from God.
“They are indeed a gift of God,” Al-Ghais said in a speech at the conference.
“They impact how we produce and package and transport food and how we undertake medical research, manufacture, distribute, medical supplies. I could go on forever.”
He said that world governments, which agreed to limit planetary warming to 1.5 degrees Celsius above pre-industrial levels at the 2015 summit in Paris, could achieve their climate targets without shunning petroleum.
“The focus of the Paris Agreement is reducing emissions, not choosing energy sources,” he said.
OPEC has said that technologies like carbon capture can tackle the climate impact of burning fossil fuels.
Mohamed Hamel, secretary-general of the Gas Exporting Countries Forum, a grouping of gas exporter nations, also spoke to the conference on Wednesday in support of fossil fuels.
“As the world’s population grows, the economy expands, and human living conditions improve, the world will need more natural gas, not less,” he said.
He added that he hoped that a COP29 deal on international climate finance would allow support for natural gas projects to help countries transition away from dirtier fuels like coal.
“The outcome of COP 29 should facilitate financing for natural gas projects and scaling up cleaner technologies such as carbon capture, utilization and storage,” he said.
“This is crucial for ensuring just inclusive and orderly energy transitions that leave no one behind.”
Climate scientists say the world is now likely to cross the 1.5 degrees Celsius threshold — beyond which catastrophic climate impacts could occur — in the early 2030s, if not before.
The world is currently on track for as much as 3.1 Celsius of warming by the end of this century, according to the 2024 UN Emissions Gap report.
ACWA Power, ITOCHU Corp. sign MoU at COP29 to accelerate global clean energy transition
RIYADH: Saudi Arabia’s ACWA Power has entered into an agreement with Japan’s ITOCHU Corp. during COP29 to strengthen investments in environmental infrastructure and renewable energy across the Middle East, Central Asia, and Africa.
As outlined in a press release, the memorandum of understanding aligns with ACWA Power’s broader mission to address the “energy quadrilemma” — ensuring energy and water are provided affordably, reliably, sustainably, and rapidly.
Both companies share a vision for accelerating the global energy transition, leveraging their unique strengths to create transformative solutions in renewables and water desalination.
Marco Arcelli, CEO of ACWA Power, expressed his enthusiasm: “We are thrilled to strengthen our strategic collaboration with ITOCHU Corp. through this new memorandum of understanding, signed at COP29 in Azerbaijan.”
He further added: “This partnership — which spans across various geographies and technologies — will benefit from our expertise in renewable energy sources, water desalination, and green hydrogen.”
Arcelli highlighted the company’s commitment to achieving net-zero emissions by 2050, a full decade ahead of Saudi Arabia’s national target, noting that it “aligns perfectly with the global sustainability agenda.”
The MoU, in collaboration with ITOCHU’s extensive network and resources, will facilitate mutual growth ambitions and open up new opportunities for Japanese investors in the clean energy sector, according to the CEO. “Together, we are poised to make significant strides in accelerating the energy transition and addressing climate change challenges,” he concluded.
Headquartered in Riyadh, ACWA Power is the world’s largest private water desalination company and a leader in renewable energy and green hydrogen. Its portfolio spans 90 projects in 13 countries, with a total investment value of $94.7 billion.
ITOCHU Corp., founded in 1858, is one of Japan’s leading multinational trading and investment companies. With operations in 61 countries and approximately 90 bases worldwide, ITOCHU boasts a diversified portfolio that includes renewable energy projects and water infrastructure.
Through this partnership with ACWA Power, “ITOCHU aims not only to contribute to regions expecting economic growth and population increases but also to achieve a balance between responding to societal needs and business expansion.”
The collaboration is expected to advance progress in renewable energy projects, including high-efficiency combined cycle power plants and green hydrogen production, with both companies dedicated to addressing climate change and advancing global sustainability initiatives.
Earlier this year, ACWA Power signed multiple agreements with Japanese companies on May 21, during the Saudi-Japan Vision 2030 Business Forum, to further the sustainable energy transition and attract foreign investment.
The forum, held in Tokyo, brought together over 300 industry officials and leaders to discuss ways to enhance trade, investment, and cultural ties.
