GLASGOW, Scotland: Almost 200 nations accepted a compromise deal Saturday aimed at keeping a key global warming target alive, but it contained a last-minute change that watered down crucial language about coal.
Several countries, including small island states, said they were deeply disappointed by the change promoted by India to “phase down,” rather than “phase out” coal power, the single biggest source of greenhouse gas emissions.
“Our fragile planet is hanging by a thread,” United Nations Secretary-General Antonio Guterres said in a statement. “We are still knocking on the door of climate catastrophe.”
Nation after nation had complained earlier on the final day of two weeks of UN climate talks in Glasgow, Scotland about how the deal did not go far or fast enough, but they said it was better than nothing and provided incremental progress, if not success.
In the end, the summit broke ground by singling out coal, however weakly, by setting the rules for international trading of carbon credits, and by telling big polluters to come back next year with improved pledges for cutting emissions.
But domestic priorities both political and economic again kept nations from committing to the fast, big cuts that scientists say are needed to keep warming below dangerous levels that would produce extreme weather and rising seas capable of erasing some island nations.
Ahead of the Glasgow talks, the United Nations had set three criteria for success, and none of them were achieved. The UN’s criteria included pledges to cut carbon dioxide emissions in half by 2030, $100 billion in financial aid from rich nations to poor, and ensuring that half of that money went to helping the developing world adapt to the worst effects of climate change.
“We did not achieve these goals at this conference,” Guterres said. “But we have some building blocks for progress.”
Negotiators from Switzerland and Mexico called the coal language change against the rules because it came so late. However, they said they had no choice but to hold their noses and go along with it.
Swiss environment minister Simonetta Sommaruga said the change will make it harder to limit warming to 1.5 degrees Celsius (2.7 degrees Fahrenheit) since pre-industrial times — the more stringent threshold set in the 2015 Paris Agreement.
Many other nations and climate campaigners criticized India for making demands that weakened the final agreement.
“India’s last-minute change to the language to phase down but not phase out coal is quite shocking,” said Australian climate scientist Bill Hare, who tracks world emission pledges for the science-based Climate Action Tracker. “India has long been a blocker on climate action, but I have never seen it done so publicly.”
Others approached the deal from a more positive perspective. In addition to the revised coal language, the Glasgow Climate Pact included enough financial incentives to almost satisfy poorer nations and solved a long-standing problem to pave the way for carbon trading.
The agreement also says big carbon polluting nations have to come back and submit stronger emission cutting pledges by the end of 2022.
“It’s a good deal for the world,” US climate envoy John Kerry told The Associated Press. “It’s got a few problems, but it’s all in all a very good deal.”
Before the India change, negotiators said the deal preserved, albeit barely, the overarching goal of limiting Earth’s warming by the end of the century to 1.5 degrees. The planet has already warmed 1.1 degrees Celsius (2 degrees Fahrenheit) compared to preindustrial times.
Negotiators Saturday used the word “progress” more than 20 times, but rarely used the word “success” and then mostly in that they’ve reached a conclusion, not about the details in the agreement. Conference President Alok Sharma said the deal drives “progress on coal, cars, cash and trees’’ and is “something meaningful for our people and our planet.’’
Environmental activists were measured in their not-quite-glowing assessments, issued before India’s last minute change.
“It’s meek, it’s weak and the 1.5 C goal is only just alive, but a signal has been sent that the era of coal is ending. And that matters,” said Greenpeace International Executive Director Jennifer Morgan, a veteran of the UN climate talks known as the Conferences of Parties.
Former Irish President Mary Robinson, speaking for a group of retired leaders called The Elders, said the pact represents : the pact represents “some progress, but nowhere near enough to avoid climate disaster....People will see this as a historically shameful dereliction of duty.”
Indian Environment Minister Bhupender Yadav argued against a provision on phasing out coal, saying that developing countries were “entitled to the responsible use of fossil fuels.”
Yadav blamed “unsustainable lifestyles and wasteful consumption patterns” in rich countries for causing global warming.
After Yadav first raised the specter of changing the coal language, a frustrated European Union Vice President Frans Timmermans, the 27-nation EU’s climate envoy, begged negotiators to be united for future generations.
“For heaven’s sake, don’t kill this moment,” Timmermans pleaded. “Please embrace this text so that we bring hope to the hearts of our children and grandchildren.”
Helen Mountford, vice president of the World Resources Institute think tank, said India’s demand may not matter as much as feared because the economics of cheaper, renewable fuel is making coal increasingly obsolete.
“Coal is dead. Coal is being phased out,” Mountford said. “It’s a shame that they watered it down.’’
Kerry and several other negotiators noted that good compromises leave everyone slightly unsatisfied.
“Not everyone in public life...gets to make choices about life and death. Not everyone gets to make choices that actually affect an entire planet. We here are privileged today to do exactly that,” he said.
Before the coal change, small island nations that are vulnerable to catastrophic effects of climate change and had pushed for bolder actions in Glasgow said they were satisfied with the spirit of compromise, if not the outcome of the talks.
“Maldives accepts the incremental progress made in Glasgow,” Aminath Shauna, the island nation’s minister for environment, climate change and technology said. “I’d like to note that this progress is not in line with the urgency and scale with the problem at hand.’’
Shauna pointed out that that to stay within warming limit that nations agreed to six years ago in Paris, the world must cut carbon dioxide emissions essentially in half in 98 months. The developing word needs the rich world to step up she said.
“The difference between 1.5 and 2 degrees is a death sentence for us,” Shauna said. “We didn’t cause the climate crisis. No matter what we do, it won’t reverse this.”
Next year’s talks are scheduled to take place in the Egyptian Red Sea resort of Sharm el-Sheikh. Dubai will host the meeting in 2023.
Nations compromise on coal to strike UN climate agreement
https://arab.news/8beu2
Nations compromise on coal to strike UN climate agreement

- The summit broke ground by singling out coal, and setting the rules for international trading of carbon credits
World oil demand to keep growing this decade despite 2027 China peak, IEA says

- IEA forecasts oil demand peak at 105.6 million bpd by 2029
- China’s oil demand to peak in 2027 due to EV growth
LONDON: Global oil demand will keep growing until around the end of this decade despite peaking in top importer China in 2027, as cheaper gasoline and slower electric vehicle adoption in the United States support oil use, the International Energy Agency said on Tuesday.
The IEA, which advises industrialized countries, did not change its prediction that demand will peak this decade, a view that sharply contrasts with that of producer group the Organization of the Petroleum Exporting Countries, which says consumption will keep growing and has not forecast a peak.
Oil demand will peak at 105.6 million barrels per day (bpd) by 2029 and then fall slightly in 2030, a table in the Paris-based IEA’s annual report shows. At the same time, global production capacity is forecast to rise by more than 5 million bpd to 114.7 million bpd by 2030.
A conflict between Israel and Iran has highlighted the risk to Middle East supplies, helping send oil prices up 5 percent to above $74 a barrel on Friday. Still, the latest forecasts suggest ample supplies through 2030 if there are no major disruptions, the IEA said.
“Based on the fundamentals, oil markets look set to be well-supplied in the years ahead,” said IEA Executive Director Fatih Birol in a statement. “But recent events sharply highlight the significant geopolitical risks to oil supply security,” Birol said.
After decades of leading global oil demand growth, China’s contribution is sputtering as it faces economic challenges as well as making a big shift to EVs. The world’s second-largest economy is set to see its oil consumption peak in 2027, following a surge in EV sales and the deployment of high-speed rail and trucks running on natural gas, the IEA said.
In February, it predicted China’s demand for road and air transport fuels may have already peaked.
China’s total oil consumption in 2030 is now set to be only marginally higher than in 2024, the IEA said, compared with growth of around 1 million bpd forecast in last year’s report.
By contrast, lower gasoline prices and slower EV adoption in the United States, the world’s largest oil consumer, have boosted the 2030 oil demand forecast by 1.1 million bpd compared with the previous prediction, the IEA said.
Since returning to office, US President Donald Trump has demanded OPEC lower oil prices and taken aim at EVs through steps such as signing resolutions approved by lawmakers barring California’s EV sales mandates.
Oil Updates — prices rise as Iran-Israel conflict keeps floor under prices

- No visible production impact from conflict, ENI says
- ‘War risk’ continues to underpin market
SINGAPORE: Oil prices rose on Tuesday, with analysts saying that uncertainty would keep prices elevated, even as there were no concrete signs of any production losses stemming from the Iran-Israel conflict for now.
Brent crude futures climbed 54 cents, or 0.7 percent, to $73.77 a barrel as of 9:30 a.m. Saudi time. US West Texas Intermediate crude was up 58 cents, or 0.8 percent, at $72.35. Both contracts rose more than 2 percent earlier in the trading session but also notched declines before bouncing back in volatile trading.
Prices traded higher as there was still risk of further unrest and potential disruption of oil supply from the key Middle East producing region.
However, there were no visible signs of supply loss for now, industry sources said.
The Israel-Iran conflict has not led to a loss in oil production, and the Organization of the Petroleum Exporting Countries still has spare production capacity, the chief executive of Italy’s Eni said on Tuesday.
Meanwhile, all the facilities of energy services firm Baker Hughes are operating normally in the Middle East, its chief executive Lorenzo Simonelli told Reuters on Monday.
The benchmark oil contracts settled more than 1 percent lower on Monday amid hopes that the conflict would ease after media reports Iran was seeking an end to hostilities.
However, concerns remained as US President Donald Trump in a social media post urged “everyone” to evacuate the Iranian capital of Tehran.
Entering its fifth day on Tuesday, the fighting has continued with Iranian media reporting explosions and heavy air defense fire in Tehran. In Israel, air raid sirens sounded in Tel Aviv in response to Iranian missiles.
“The conflict between Iran and Israel is still fresh and brewing, and investor sentiments may still be holding on to the ‘war risks’,” Priyanka Sachdeva, senior market analyst at Phillip Nova, said in an email.
“Added volatility and caution ahead of the Fed policy decision are further ensuring higher-paced price reactions in oil,” Sachdeva added, referring to the US Federal Open Market Committee meeting, which guides interest rate decisions, that begins on Tuesday.
Iran is the third-largest producer among members of the Organization of the Petroleum Exporting Countries. The concern is the fighting could disrupt its oil supply and raise prices, or Iran could retaliate by blocking shipping through the Strait of Hormuz.
US media on Monday night reported Trump was proposing renewed talks with Iran on a nuclear deal, even as shipping sources said a vessel collided with two other ships sailing near the Strait of Hormuz, highlighting risks to companies moving oil and fuel supplies in the region.
Riyadh Air orders up to 50 Airbus A350 jets to expand long-haul fleet

- Deal includes 25 firm orders and purchase rights for an additional 25 aircraft
- A350-1000s will enable long-haul connections ahead of high-profile events
JEDDAH: Saudi Arabia’s Riyadh Air has signed a deal to acquire up to 50 Airbus A350-1000 aircraft as it gears up to launch operations later this year.
The agreement, signed at the 55th Paris Air Show, includes 25 firm orders and purchase rights for an additional 25 aircraft. The deal supports Riyadh Air’s plan to build a wide-body fleet capable of serving over 100 destinations globally by 2030.
Owned by the Public Investment Fund, Riyadh Air was unveiled in March 2023 by Crown Prince Mohammed bin Salman as part of Saudi Arabia’s strategy to become a global aviation hub by expanding connectivity to over 250 destinations and tripling annual passenger traffic to 330 million.
In a statement, Yasir Al-Rumayyan, PIF governor and chairman of Riyadh Air, said: “Our new national carrier is set to take to the skies in the near future, and as a fundamental element of the Kingdom of Saudi Arabia’s infrastructure, will connect our capital city to over 100 international destinations around the globe by 2030.
He added: “With its outstanding range, adding the Airbus A350-1000 to our fleet demonstrates the strategic contribution of Riyadh Air in positioning Saudi Arabia as a global aviation hub.”
The A350-1000s, with an operational range exceeding 16,000 km, will enable long-haul connections ahead of high-profile events such as Riyadh Expo 2030 and the FIFA World Cup 2034.
In April, the airline received its Air Operator Certificate from the General Authority of Civil Aviation, authorizing it to commence flight operations after meeting all regulatory, safety, and operational requirements.
“Riyadh Air is making significant progress as we move towards our first flight later this year and agreeing this deal for up to 50 Airbus A350-1000 aircraft is an important statement of intent,” said Tony Douglas, CEO of Riyadh Air.
The airline’s launch supports Saudi Arabia’s broader efforts to diversify its economy. According to the General Authority for Civil Aviation, the aviation industry generated $32.2 billion in tourism receipts and supported more than 958,000 jobs in 2023 — 241,000 in aviation and 717,000 in tourism-related sectors.
“We play an important role in the evolution of the Saudi aviation ecosystem with the aim to create 200,000 direct and indirect jobs and contribute almost $20 billion to the Kingdom’s non-oil GDP,” added Douglas.
The sector is a key pillar of the National Transport and Logistics Strategy, which aims to raise its gross domestic product contribution from 6 percent to 10 percent by 2030.
Christian Scherer, CEO of commercial aircraft at Airbus, said: “This partnership reflects our shared commitment to innovation and decarbonization whilst connecting the vibrant Kingdom of Saudi Arabia to the world!”
Closing Bell: TASI gains 135 points after positive market breadth

- Market breadth was strongly positive with 223 gainers and 23 fallers
- Trading activity remained robust with a total value of SR4.87 billion
RIYADH: Saudi Arabia’s Tadawul All Share Index closed higher on Monday, advancing 135.45 points, or 1.26 percent, to end at 10,867.04.
Market breadth was strongly positive with 223 gainers and 23 fallers. Trading activity remained robust with a total value of SR4.87 billion ($1.2 billion), supported by optimism across key sectors.
Among the top gainers, Red Sea International Co. rose 10 percent to SR36.85, while CHUBB Arabia Cooperative Insurance Co. added 9.98 percent to end at SR33.60.
National Gypsum Co. and Saudi Enaya Cooperative Insurance Co. gained 9.97 percent and 8.02 percent, respectively, closing at SR19.42 and SR9.29.
ACWA Power Co. also rose 6.94 percent to close at SR262.00.
Among the worst performers, MBC Group Co. led losses with a decline of 3.11 percent to close at SR35.80.
Dr. Sulaiman Al Habib Medical Services Group followed, shedding 2.30 percent to settle at SR255, while Gulf Union Alahlia Cooperative Insurance Co. fell 1.63 percent to SR14.52.
Middle East Specialized Cables Co. ended the session down 1.13 percent at SR30.55, and Dr. Soliman Abdel Kader Fakeeh Hospital Co. edged 0.75 percent lower to SR39.85.
On the announcement front, ASAS Makeen Real Estate Development and Investment Co. began trading on the Nomu-Parallel Market on June 16, with shares priced at SR80 each.
The company’s stock rose 14.38 percent to close at SR91.50 after it confirmed the signing of an SR240 million real estate development agreement with the National Housing Co.
The stock is subject to daily and static price fluctuation limits of plus or minus 30 percent and 10 percent, respectively.
The 42-month project includes the construction of 470 residential units in Riyadh and is expected to impact financial results in the fourth quarter following the issuance of the required license.
ASAS Makeen offered 10 percent of its SR100 million capital, or one million shares, in an initial public offering that was nearly 1,949 percent oversubscribed.
Tabuk Agricultural Development Co. closed 1.90 percent higher at SR10.18 after announcing it had received the full SR14.85 million operational financing loan from the Agricultural Development Fund.
The two-year facility is secured by a mortgage on the company’s land and investment shares.
PIF’s AviLease to acquire up to 77 Airbus jets in expansion drive

- Order marks first direct deal with Airbus as PIF-owned lessor targets global growth
- Agreement announced at Paris Air Show
RIYADH: Saudi Arabia’s Public Investment Fund-owned AviLease has signed a deal to purchase up to 77 Airbus aircraft, further expanding its next-generation, fuel-efficient fleet to meet rising global demand across passenger and cargo operations.
The agreement, announced at the Paris Air Show, includes 55 A320neo Family aircraft and 22 A350F freighters, with deliveries scheduled through 2033, according to a press release.
This marks AviLease’s first direct order with Airbus. The move aligns with the goals of the Saudi Aviation Strategy, which targets a rise in annual passenger capacity to 330 million and cargo throughput to 4.5 million tonnes by 2030, while enhancing the Kingdom’s status as a regional aviation hub.
“This dual order reinforces AviLease’s credentials as a leading lessor, and it demonstrates the broad appeal of our products among lessors and their airline customers,” said Benoit de Saint-Exupéry, executive vice president of sales for Airbus Commercial Aircraft.
Edward O’Byrne, CEO of AviLease, said: “We are proud to establish an Airbus order book, strengthening our position as a full-service, investment grade global lessor. The addition of these latest generation aircraft enhances our ability to offer modern, fuel-efficient fleet solutions to our airline partners in Saudi Arabia and around the world.”

The A350F freighters were selected following consultations with local stakeholders and will support Saudi Arabia’s expanding air cargo requirements. O’Byrne noted that AviLease has secured delivery slots in line with the Kingdom’s Vision 2030 goals.
“We thank our local partners and Airbus for the strong long-term partnership we have established and look forward to placing these aircraft across our valued customer base,” he said.
The A350F, according to Airbus, offers at least 20 percent lower fuel consumption, improved loading capabilities, and extended range.
The new order follows AviLease’s purchase of 30 Boeing 737 MAX aircraft in May—its first direct deal with a manufacturer—bringing its total new aircraft orders within two months to 107.
“In less than two months, AviLease has signed two major deals, reflecting its long-term ambition to become a top 10 global player in aircraft leasing and to strengthen its position as a national champion,” said Fahad Al-Saif, chairman of AviLease.
As of March 31, AviLease had a portfolio of 200 aircraft leased to 48 airlines around the world.
In April, the firm secured a $1.5 billion unsecured revolving credit facility to support its global expansion. The three-year facility attracted commitments from 20 international banks, including eight new lenders from Europe, Asia, and North America.
The company holds investment-grade ratings of Baa2 (stable) from Moody’s Ratings and BBB (stable) from Fitch Ratings.