COP28 opens in Dubai with calls for accelerated climate action

Up to 200 global leaders will join over 80,000 delegates gathered in Dubai for the UN climate conference. (Abdulrahman Fahad Bin shulhub/AN)
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Updated 30 January 2024
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COP28 opens in Dubai with calls for accelerated climate action

  • Up to 200 global leaders will join over 80,000 delegates gathered in Dubai for the UN climate conference

DUBAI: Up to 200 global leaders will join over 80,000 delegates gathered in Dubai for the UN climate conference as governments prepare for negotiations on whether to agree, for the first time, to phase out fossil fuels – the main source of global warming.

With finance also high on the meeting agenda, the COP28 presidency has published a proposal on the eve of the summit for countries to formally adopt the outlines of a new UN fund to cover losses and damages in poor countries being hit by climate disasters like extreme flooding or persistent drought.

READ MORE: Click here for our coverage of COP28

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COP28 formally approves climate disaster fund arrangements

DUBAI: Countries at the UN COP28 climate summit on Thursday formally approved a deal on a new climate disaster fund.

The deal was adopted following the COP28 opening ceremony, drawing a standing ovation from delegates.

Representatives from developed and developing countries painstakingly crafted the agreement during negotiations this year. It will launch a fund to help vulnerable nations cope with the cost of climate-driven damage from drought, floods and rising seas.

UN weather agency says 2023 is the hottest year on record, warns of further climate extremes ahead

DUBAI: The UN weather agency said Thursday that 2023 is all but certain to be the hottest year on record, and warning of worrying trends that suggest increasing floods, wildfires, glacier melt, and heat waves in the future.

The World Meteorological Organization also warned that the average temperature for the year is up some 1.4°C from pre-industrial times – a mere one-tenth of a degree under a target limit for the end of the century as laid out by the Paris climate accord in 2015.

The WMO secretary-general said the onset earlier this year of El Niño, the weather phenomenon marked by heating in the Pacific Ocean, could tip the average temperature next year over the 1.5°C target cap set in Paris.

WATCH: Opening ceremony of COP28: UN Climate Change conference

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Jim Skea, chairman of the Intergovernmental Panel on Climate Change. (AFP)

“Human activity has led to changes in climate at a magnitude that is unprecedented over centuries and thousands of years,” according to Jim Skea, chairman of the Intergovernmental Panel on Climate Change.

“If we do not find immediate and deep emission reductions across all sectors, we will not meet the goals of the Paris agreement,” he said.

“Our assessments have identified multiple options to reduce greenhouse gas emissions and adapt to climate change, and these can be implemented right now. But they need to be scaled up and mainstreamed through policies and increased financing.”

“As the chair of the IPCC, the scientific community is poised for using the resources available to support the outcomes of COP28, in shaping climate actions based on science. But finally, let us recall, science by itself is no substitute for action,” Skea said.

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Simon Stiell, executive secretary of UNFCCC

“Today, we find ourselves in a rather different position, in humanity’s climate action journey. We are taking baby steps. Stepping far too slowly from an unstable world that lacks resilience, to working out the best responses to the complex impacts we are facing,” Simon Stiell, executive secretary of UNFCCC, said in his remarks at the opening of COP28.

“We must teach climate action to run. Because this has been the hottest year ever for humanity. So many terrifying records were broken. We are paying with people’s lives and livelihoods,” he said.

“If we do not signal the terminal decline of the fossil fuel era as we know it, we welcome our own terminal decline. And we choose to pay with people’s lives. If this transition isn’t just, we won’t transition at all. That means justice within and between countries. Sharing benefits across society. Ensuring that everyone – women, indigenous peoples and youth, in all their diversity - have equal opportunities to benefit from these transitions.”

“In 2024, countries will submit their first Biennial Transparency Report. This will mean the reality of individual progress can’t be concealed… And let this be your first official notice that early in 2025, countries must deliver new Nationally Determined Contributions. Please start working on them now,” Stiell said.

“Science tells us we have around six years before we exhaust the planet’s ability to cope with our emissions. Before we blow through the 1.5°C limit,” the executive secretary of UNFCCC said.

“This is the biggest COP yet – but attending a COP does not tick the climate box for the year. The badges around your necks make you responsible for delivering climate action here and at home... turn the badge around your necks into a badge of honor, and a life belt for the millions of people you are working for. Accelerate climate action. Teach it to run,” added.

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COP28 President designate Sultan Al-Jaber. (Abdulrahman Fahad Bin shulhub/AN)

In his opening speech, COP28 President designate Sultan Al-Jaber urged delegates as well as oil companies to work together at the UN climate summit. He said, “we must ensure that this COP delivers the most ambitious global stocktake possible.”

He stressed that the COP28 is committed to unlocking finance to ensure that the global south does not have to choose between development and climate action.

While Al-Jaber hailed the initiative of national oil companies to step up, he said “it is not enough.” “They can do more. Every nation, every sector and every one of us has an urgent role to play.”

 

 

“We can bring mitigation, adaptation and means of implementation which includes finance under one umbrella,” according to Al-Jaber, who also runs state-run Abu Dhabi National Oil Company.

“I ask you to start this COP with a new mindset, adopt different thinking, be flexible. Ensure the most ambitious global stocktake. I want this COP to be the COP that maximizes mitigation on momentum,” Al-Jaber said.

He stressed that the ‘role of fossil fuels’ must be part of climate deal. “It is essential that no issue is left off the table,” according to the UAE official. He added that “let this be the COP where we deliver our promises from the $100 billion on loss and damage.”




COP28 president Sultan Ahmed Al-Jaber receives a gavel from Egyptian foreign minister and COP27 President Sameh Shoukry during the United Nations Climate Change Conference opening in Dubai on Nov. 30, 2023. (Reuters)

“This is the presidency that made a bold choice to proactively engage oil and gas companies. We had many hard discussions. That was not easy. But today, many of these companies are committing zero methane emissions by 2030 for the first time. And now, many national oil companies have adopted net zero 2050 targets for the first time,” Al-Jaber said in his speech.

“The next two weeks will not be easy. Let us remember, our task is not about only negotiating texts. It is about improving lives, it is about people,” he added.

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Sameh Shoukry, the COP27 president

“Rather than increasing climate finance from developed countries, actually, it is decreasing in relation to growing needs and the increasing growth of financing in developing countries,” said Shoukry, the COP27 president.

The UN’s COP28 climate summit in Dubai opened Thursday with a moment of silence for the victims of the conflict in Gaza.

Sameh Shoukry, the Egyptian foreign minister who chaired the previous COP talks in Egypt last year, urged delegates to “stand for a moment of silence” in memory of two climate diplomats who recently died “as well as all civilians who have perished during the current conflict in Gaza”.

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An early breakthrough on the damage fund — which poorer nations have demanded for years — could help grease the wheels for other compromises to be made during the two-week summit.

The UN and hosts the UAE say the COP28 talks will be the most important since Paris in 2015, when nations agreed to limit global warming to well below 2°Celsius since the preindustrial era, and preferably to a safer limit of 1.5°C.

Scientists say the world is not on track to achieve these targets and nations must make faster and deeper cuts to emissions to avert the most disastrous impacts of climate change.

 

 

A central focus will be a stocktake of the world’s limited progress on curbing global warming, which requires an official response at these talks.

“Right now, we’re taking baby steps where we should be taking great leaps and great strides to get us to where we need to be,” said UN climate chief Simon Stiell on Wednesday.

The COP28 climate conference should aim for a complete “phaseout” of fossil fuels, UN Secretary-General Antonio Guterres earlier said, warning of “total disaster” on humanity’s current trajectory.

“Obviously I am strongly in favor of language that includes (a) phaseout, even with a reasonable time framework,” Guterres said.

Climate change is the biggest threat to human health in Africa and the rest of the world, the head of the continent's public health agency said.

Mitigating that risk was top of his agenda, Jean Kaseya, the director general of the Africa Centres for Disease Control and Prevention, said as he headed to the COP28 climate summit in Dubai.

with agencies


Citi gets license for regional headquarters in Saudi Arabia, memo shows

Updated 22 November 2024
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Citi gets license for regional headquarters in Saudi Arabia, memo shows

  • Wall Street giant received the approval from the Ministry of Investment Saudi Arabia

RIYADH: US bank Citigroup has received approval to establish its regional headquarters in Saudi Arabia’s Riyadh, according to an internal memo seen by Reuters on Friday.
The Wall Street giant received the approval from the Ministry of Investment Saudi Arabia (MISA), according to the memo.
“This marks a significant leap forward for our franchise in Saudi Arabia and we look forward to our continued growth in the kingdom,” Citi Saudi Arabia CEO Fahad Aldeweesh said in the memo.
Bloomberg News reported the development earlier in the day.
Wall Street titan Goldman Sachs also received a license in May to set up its regional headquarters in Saudi Arabia’s Riyadh.


Saudi Arabia joins global hydrogen fuel partnership

Updated 22 November 2024
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Saudi Arabia joins global hydrogen fuel partnership

RIYADH: Saudi Arabia has joined a key international alliance designed to enhance cooperation around the development and deployment of hydrogen and fuel cell technologies.

The International Partnership for the Hydrogen and Fuel Cell Economy works to deliver a balanced and effective global transition to cleaner and more efficient energy systems.

The Kingdom’s Ministry of Energy announced Saudi Arabia had signed up to the organization, with a press release saying the move represents a new step that confirms the “pioneering role” that the Kingdom is playing in international efforts aimed at enhancing sustainability and “innovating advanced solutions” in the fields of clean power.

Saudi Arabia has pledged to achieve zero neutrality in terms of carbon emissions by 2060, as well as becoming one of the world’s most important producers and exporters of clean hydrogen.

The press release added: “The Kingdom’s accession to this partnership confirms its firm vision regarding the role of international cooperation and its importance in achieving a more sustainable energy future.”

The IPHE was originally launched in 2003 by the US, and has two active working groups covering Education & Outreach, and Regulations, Codes, Standards, & Safety.


COP29 enters final hours amid key negotiations on climate finance and carbon markets

Updated 22 November 2024
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COP29 enters final hours amid key negotiations on climate finance and carbon markets

BAKU: As COP29 nears its conclusion, negotiators are working intensively to finalize agreements that could significantly advance global climate action. 

Hosted in Baku, Azerbaijan, the conference has focused on critical issues such as climate finance, adaptation strategies, and the operationalization of carbon markets under the 2015 Paris Agreement. 

Although decisions remain in draft form, the discussions signal progress on aligning global efforts with the urgent need to combat the climate crisis.

Saudi Arabia has emerged as a key player, leveraging its growing diplomatic influence and domestic climate initiatives to shape the outcomes.

Push for equitable climate finance

One of the most pressing topics at COP29 has been the New Collective Quantified Goal on climate finance. 

Negotiators are seeking to establish a framework that mobilizes $1.3 trillion annually by 2035 to support developing nations in addressing climate change. 

This new goal reflects the escalating financial demands of both mitigation and adaptation efforts, with developing countries requiring $215 billion to 387 billion annually for adaptation alone through 2030.

Saudi Arabia has been a vocal advocate for equitable financing mechanisms, emphasizing the need for practical pathways to unlock funds for countries that bear the brunt of climate impacts yet have limited resources. 

The Kingdom has supported calls for reforming global financial institutions to reduce barriers such as high borrowing costs and restrictive conditions. This aligns with Saudi Arabia’s broader position that climate finance must be accessible and targeted to the most vulnerable nations.

Domestically, Saudi Arabia has backed its advocacy with action. The Kingdom has committed significant investments to its Saudi Green Initiative, which includes billions of dollars for renewable energy projects, reforestation, and environmental restoration. 

These initiatives underscore Saudi Arabia’s dual focus on addressing domestic climate challenges and contributing to global solutions, according to the draft resolution. 

“Through initiatives like the Saudi Green Initiative, the Kingdom has committed to reducing regional emissions by more than 10 percent and leading the planting of 50 billion trees across the Middle East to combat desertification and foster environmental sustainability,” the document stated.

Speeches came to an end as negotiations at COP29 in Baku reached their final hours. AN Photo/Abdulrahman Bin Shulhub

Carbon Markets: A Saudi priority

Discussions on Article 6 of the Paris Agreement, which governs international carbon trading, have been another focal point of COP29. 

Saudi Arabia has taken a prominent role in shaping the rules for carbon markets, advocating for frameworks that promote transparency and equitable participation.

Under Article 6.2, which covers bilateral cooperation, and Article 6.4, which establishes a centralized mechanism for trading carbon credits, Saudi negotiators emphasized the importance of avoiding double-counting emissions reductions and ensuring environmental integrity. 

These safeguards are essential for building trust in the carbon market as a tool for accelerating emissions reductions.

In the draft resolution on financing released by the UN Framework Convention on Climate Change it is outlined that “Saudi Arabia emphasizes the importance of transparency and equitable participation in Article 6 mechanisms, ensuring that developing nations can benefit from international carbon trading frameworks.”

The Kingdom’s engagement in these discussions reflects its broader ambition to become a regional hub for carbon trading. The Kingdom is advancing projects in carbon capture, utilization, and storage, positioning itself as a leader in leveraging market-based solutions to achieve climate goals. 

These efforts align with the Saudi Green Initiative’s targets for emissions reductions and renewable energy expansion.

A commitment to adaptation

While mitigation often dominates global climate discussions, COP29 has seen renewed attention to adaptation – an area where Saudi Arabia has also contributed actively.

Negotiators are working to refine the Global Goal on Adaptation by developing measurable indicators to track progress.

These metrics aim to ensure that adaptation efforts are effective and responsive to the needs of vulnerable communities.

“Saudi Arabia continues its focus on promoting energy efficiency, a critical pillar of its sustainability agenda, as highlighted by top officials during COP29 discussions,” reads the draft resolution.​

The Kingdom has supported these efforts, emphasizing the importance of integrating local knowledge and traditional practices into adaptation strategies. The Kingdom’s approach aligns with its domestic priorities, which include enhancing resilience to desertification and water scarcity, challenges exacerbated by its arid climate, the document added.

Inclusivity and collaboration

Inclusivity has been a central theme at COP29, and Saudi Arabia has demonstrated its commitment to ensuring diverse voices are part of the climate conversation. The Kingdom supported the draft Baku Workplan, which aims to elevate indigenous peoples and local communities in climate governance.

Domestically, Saudi Arabia has prioritized inclusivity through education and workforce development programs that prepare youth and women for leadership roles in green industries. 

These initiatives are part of broader reforms under Vision 2030, which aims to diversify the economy while ensuring equitable opportunities for all citizens.

COP29 began on Nov. 11. AN Photo/Abdulrahman Bin Shulhub

Regional leadership

Saudi Arabia’s influence extends beyond its national borders. Through the Middle East Green Initiative, the Kingdom is fostering regional cooperation to combat climate change.

The initiative includes ambitious goals to plant 50 billion trees across the Middle East and reduce regional emissions by more than 10 percent.

At COP29, these efforts were presented as examples of how regional action can amplify global progress.

By working closely with other Gulf Cooperation Council countries, Saudi Arabia is also driving investments in renewable energy projects that enhance energy security and sustainability. 

These partnerships underscore the Kingdom’s role as a regional leader in climate action, capable of catalyzing collective efforts to address shared challenges.

Challenges and opportunities ahead

As COP29 approaches its conclusion, much remains to be finalized. The draft decisions on climate finance, carbon markets, and adaptation reflect significant progress but also underscore the complexity of reaching consensus among diverse stakeholders.

Saudi Arabia’s contributions to these discussions demonstrate its ability to balance domestic priorities with international leadership. By advocating for equitable solutions, advancing regional cooperation, and showcasing its own climate successes, the Kingdom has positioned itself as a key player in shaping the global response to climate change.

The conference has marked an important step forward in the global fight against climate change. The agreements under discussion – particularly those on finance and carbon markets – highlight the growing recognition that collective action is essential to achieving the Paris Agreement’s goals.

Saudi Arabia’s active participation in these negotiations underscores its evolving role as a climate leader. 


Saudi cement sales up 5% to 12.84m tonnes amid sustainability drive

Updated 22 November 2024
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Saudi cement sales up 5% to 12.84m tonnes amid sustainability drive

RIYADH: Cement sales in Saudi Arabia saw an annual increase of 4.93 percent in the third quarter of 2024, reaching 12.84 million tonnes, according to recent data.

Figures released by Al-Yamama Cement showed that 96.18 percent of these sales were domestic, with only 3.82 percent being exported.  

The data covers 17 Saudi cement companies, with Al-Yamama Cement holding the largest share of domestic sales at 12.47 percent, amounting to 1.54 million tonnes, despite experiencing a 27.18 percent decline during the period.

With the successful acquisition of Hail Cement Company by Qassim Cement Company, QCC now leads the market with the highest share among its peers at 13.37 percent, or 1.65 million tonnes, moving Al-Yamama Cement to second place.

Saudi Cement, Southern Cement and Yanbu Cement held 8.96 percent, 8.49 percent and 8.18 percent shares of the domestic market respectively.

The highest growth in domestic sales was recorded by Umm Al-Qura Cement, which saw a 69 percent increase to 372,000 tonnes during this period, despite holding a relatively small 3 percent market share.

City Cement’s local sales rose by 52.69 percent annually to 739,000 tonnes, while Tabuk Cement experienced a 27.3 percent increase, reaching 429,000 tonnes.  

In terms of cement exports, Saudi Cement dominated with 80.45 percent of total shipments, amounting to 395,000 tonnes this quarter.  This figure represents a 13.18 percent increase compared to the same quarter last year.   

Najran Cement accounted for 11 percent of exports for the quarter, totaling 54,000 tonnes, marking a 24 percent decline. Eastern Cement with 8.55 percent share saw a 133 percent rise in exports, reaching 42,000 tonnes. 

Saudi Arabia also exported 1.08 million tonnes of clinker during this period, marking a 41 percent decline compared to the same period last year.

Clinker, a crucial intermediate product in cement production, is commonly exported due to its cost-effectiveness. It is more economical to ship it to other countries for final processing into cement than to produce the finished product and then export.

According to a report by AlJazira Capital, the total utilization rate of the cement sector in Saudi Arabia stood at 72.8 percent in September. 

This figure represents the proportion of the cement production capacity that is actively being used to meet demand.

A utilization rate of 72.8 percent indicates that, on average, the cement industry in Saudi Arabia is using just over two-thirds of its available production capacity.

Saudi Arabia is a prominent player in the global cement industry, ranking among the top 10 producers worldwide. The Kingdom’s production capacity has been bolstered by significant investments to meet both domestic demand and export opportunities.

Key factors driving Saudi Arabia’s cement industry include its robust infrastructure development, housing projects, and initiatives under Vision 2030, which aim to diversify the economy and reduce reliance on oil revenues.

Saudi Arabia’s path to decarbonization

In October, Saudi Arabia’s cement sector took a significant leap towards decarbonization with the announcement of a joint venture between the UK’s Next Generation SCM and Nizak Mining Co., a subsidiary of City Cement.

The collaboration is focused on producing supplementary cementitious materials locally, utilizing an innovative, energy-efficient technology.

This new method requires only one-sixth of the fuel compared to conventional cement production and operates at lower temperatures, significantly reducing operational costs and carbon emissions.

The technology already demonstrates a 99 percent reduction in emissions, producing just 8 kg of CO2 per tonne of calcined clay, compared to the global average of 600 kg per tonne.

The joint venture is part of the Kingdom’s broader decarbonization strategy, which is aligned with Vision 2030 and the Saudi Green Initiative.

As part of these proposals, the Kingdom has set an ambitious goal of cutting carbon emissions by 278 million tonnes annually by 2030.

This venture, which will have its first production plant in Riyadh, is expected to produce up to 700,000 tonnes of low-carbon supplementary cementitious materials in its second year of operations, starting in 2025.

The project is also crucial for the domestic production of low-carbon concrete, as traditional SCM alternatives, like fly ash and slag, are not readily available in Saudi Arabia.

The venture will not only help Saudi Arabia meet its sustainability targets but also strengthen its position as a regional hub for low-carbon materials, generating both economic and environmental benefits.

Speaking in October, Majed Al-Osailan, CEO of City Cement, emphasized the long-term impact of the project, stating that it will create jobs, improve access to sustainable building materials, and create export opportunities for the Kingdom.

According to a study by the Boston Consulting Group in September, Saudi Arabia stands to gain a significant competitive advantage in the global cement industry as the sector moves toward decarbonization through carbon capture and storage.

The competitive dynamics of the industry are shifting due to the high costs associated with CCS, which is essential for achieving net-zero emissions by 2050.

One of the primary factors influencing future competitiveness is a plant’s proximity to CO2 storage sites.

Cement plants located within 200 km of CCS hubs could see abatement costs reduced by half compared to those located farther away.

This geographical advantage will be crucial in determining cost competitiveness on a global scale.

Saudi Arabia, with its lower energy costs, is well-positioned to capitalize on this advantage according to the study. The Middle East, in general, benefits from cheaper energy, which could give Saudi plants a $20 per tonne cost advantage in CCS over the global median.

This would allow Saudi Arabia to emerge as a key export hub in the global cement market. 

Plants in the Kingdom that can minimize their CCS abatement costs will be internationally competitive, particularly as global trade dynamics shift and demand grows for low-carbon cement.

Moreover, Saudi Arabia’s energy infrastructure and strategic location near key shipping routes bolster its potential as a regional and global supplier of cement.

With substantial investments in CCS technology and renewables, the Kingdom could not only meet domestic demand but also serve international markets more efficiently, securing its position in the evolving global cement trade.

As the cost of CCS implementation rises, the global competitive landscape will be reshaped, with plants closer to CO2 storage hubs and renewable energy sources becoming more attractive.

Saudi Arabia’s competitive edge, therefore, lies in its ability to leverage its energy resources and strategic location, potentially making it a leader in the export of low-carbon cement solutions.


Oil Updates – crude heads for weekly gains as Ukraine war intensifies

Updated 22 November 2024
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Oil Updates – crude heads for weekly gains as Ukraine war intensifies

LONDON: Oil prices inched lower on Friday, but were on track for a weekly rise of nearly 4 percent, as an intensifying war in Ukraine returned a geopolitical risk premium to oil markets.

Brent crude futures fell 65 cents, or 0.88 percent, to $73.58 a barrel by 4:12 p.m. Saudi time. US West Texas Intermediate crude futures fell by 66 cents, or 0.94 percent, to $69.44 per barrel.

Pressuring prices on Friday, eurozone business activity took a surprisingly sharp turn for the worse this month as the bloc’s dominant services industry contracted and manufacturing sank deeper into recession.

Kazakhstan’s largest oilfield, Tengiz, is scheduled to return to full production in early December, Russian news agency Interfax reported on Friday, while elsewhere Kazakhstan’s energy ministry said it plans to produce 90 million tonnes of oil in 2025, up from 88 million tonnes in 2024.

Both contracts are set for gains of nearly 4 percent this week, as Moscow steps up its Ukraine offensive after Britain and the United States allowed Kyiv to strike deeper into Russia with their missiles.

“The Russia-Ukraine escalation has raised geopolitical tensions beyond levels seen during the year-long conflict between Israel and Iran-backed militants,” Saxo Bank analyst Ole Hansen said on Friday.

He added that rising refinery margins and an incoming cold snap had also supported distillate refinery profit margins, and wider oil prices, this week.

The Kremlin said on Friday that a strike on Ukraine using a newly developed hypersonic ballistic missile was a message to the West that Moscow will respond harshly to any “reckless” Western actions in support of Ukraine.

Ukraine has used drones to target Russian oil infrastructure, for instance in June, when it used long-range attack drones to strike four Russian refineries.

“What the market fears is accidental destruction in any part of oil, gas and refining that not only causes long-term damage but accelerates a war spiral,” said PVM analyst John Evans.

Also supporting prices this week, China announced policy measures on Thursday to boost trade, including support for energy product imports, amid worries over US President-elect Donald Trump’s threats to impose tariffs.

China’s crude oil imports are set to rebound in November, according to analysts, traders and ship tracking data.