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


ACWA Power expands in China with $312m in renewable energy deals

Updated 9 sec ago
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ACWA Power expands in China with $312m in renewable energy deals

RIYADH: Saudi Arabia’s ACWA Power has solidified its position in China’s renewable energy sector with two major agreements valued at $312 million.

These agreements mark a significant step in the company’s global expansion strategy and underscore its commitment to driving the country’s clean energy transition.

The deals include a 132-megawatt solar photovoltaic portfolio in Guangdong province and a 200-megawatt wind energy project, according to a company statement. Both projects are central to ACWA Power's broader strategy in China, which was launched in 2023 to support the nation’s renewable energy goals.

Marco Arcelli, CEO of ACWA Power, expressed enthusiasm about the developments: “This is a significant milestone for ACWA Power in China, establishing our operational presence in renewable energy and water desalination. We are committed to working alongside our Chinese partners to contribute to the country's clean energy and water transition.”

Arcelli further emphasized the company’s long-term vision: “We are not only investing in renewable energy projects but also in Chinese expertise and building enduring relationships within the country.”

The solar project, ACWA Power’s first collaboration at the asset level with its long-term supply chain partner Sungrow Renewables, will span three separate sites in Guangdong. Additionally, the wind energy agreement, which was signed with Mingyang Smart Energy Group — a leading wind turbine manufacturer — opens the door for joint investments in China’s rapidly expanding wind sector.

ACWA Power’s formal entry into China’s renewable energy market was announced in December 2024, with the company planning to develop projects exceeding 1 gigawatt across multiple provinces.

Mohammad Abunayyan, founder and chairman of ACWA Power’s board of directors, commented: “Our entry into China’s renewable energy market represents a key milestone in our global strategy for a sustainable future. Our growth is not just about adding megawatts; it’s about forging lasting partnerships that accelerate the energy transition and create a cleaner, more prosperous world for future generations.”

These projects are part of an initial phase that will see ACWA Power expand its portfolio to more than 1 gigawatt of capacity in China. This move aligns with the company’s long-term ambition to triple its assets under management to approximately $250 billion globally by 2030.


Closing Bell: Saudi main index gains 0.52% to close at 12,173

Updated 8 min 46 sec ago
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Closing Bell: Saudi main index gains 0.52% to close at 12,173

RIYADH: Saudi Arabia’s benchmark Tadawul All Share Index rebounded on Tuesday, rising by 62.81 points, or 0.52 percent, to close at 12,172.75.

The index saw a total trading turnover of SR6.10 billion ($1.63 billion), with 150 stocks advancing and 87 declining.

The Kingdom’s parallel market also posted gains, rising by 82.65 points to finish at 31,317.09. The MSCI Tadawul Index increased by 0.50 percent, closing at 1,517.21.

The day’s biggest gainer was Nice One Beauty Digital Marketing Co., with its share price surging 9.81 percent to SR54.30.

Other notable performers included Americana Restaurants International PLC – Foreign Co., which rose 9.01 percent to SR2.42, and Fawaz Abdulaziz Alhokair Co., which gained 8.08 percent to SR15.78.

On the downside, Savola Group saw its share price drop by 2.23 percent, closing at SR37.35.

On the announcements front, Al Jouf Cement Co. announced that recent adjustments to fuel prices in Saudi Arabia would lead to a 10.1 percent increase in production costs.

The company said the impact would be reflected in its financial performance for the first quarter of 2025. As a result, Al Jouf Cement’s share price declined by 0.92 percent, closing at SR10.74. KnowledgeNet Co. revealed that it had signed a SR3.12 million contract with Beltone Securities Brokerage, Beltone Securities Holding, and Beltone Fixed Income to provide financial brokerage and custody services.

The deal will see KnowledgeNet replace its existing systems with the TradeNet Back Office System and TradeNet Custody System, which the company believes will improve the efficiency of its operations. KnowledgeNet’s share price rose by 1.60 percent, closing at SR35.

Ataa Educational Co. also announced that its shareholders had approved a 12.5 percent cash dividend, totaling SR1.25 per share, for the financial year ending July 31, 2024. Despite the dividend approval, the company’s share price fell by 0.27 percent, closing at SR74.50.


Lebanon’s economy recovery dependent on global support, stable ceasefire: Moody’s 

Updated 46 min 55 sec ago
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Lebanon’s economy recovery dependent on global support, stable ceasefire: Moody’s 

RIYADH: Lebanon’s economy is expected to start recovering this year following a 10 percent contraction in 2024, as the country returns to fully functioning institutions, according to Moody’s. 

On Jan. 9, the country elected former army commander Joseph Aoun as president, and followed that by appointing Nawaf Salam, chief of the International Court of Justice, as prime minister on Jan. 13. 

Aoun’s election ended a leadership void that had persisted since the previous president’s term expired in October 2022. 

“We estimate an economic contraction of 10 percent in 2024 because of the conflict but expect economic activity to start recovering later this year – assuming a permanent cessation of hostilities,” Moody’s said in a commentary. 

The Middle Eastern country’s return to fully functioning institutions will boost the continued enforcement of the ceasefire with Israel, supported by the monitoring role of the US, France and the UNIFIL, the agency added. 

Lebanon’s recovery requires substantial international support, a fact underscored by an international donor conference held in Paris in October. The conference raised $1 billion in pledges, with $800 million allocated for humanitarian assistance and $200 million earmarked for military support. 

These funds are expected to address the immediate needs of over 1.3 million people displaced during the September-November conflict, as well as the $8.5 billion in economic losses incurred, including $3.4 billion in physical damage to infrastructure, as reported by the World Bank. 

While these pledges offer a lifeline, the disbursement of funds will likely be contingent on the government’s adherence to reform commitments under a forthcoming International Monetary Fund program, Moody’s noted. 

These reforms include comprehensive debt restructuring for the government, the central bank, and commercial banks, aimed at ensuring long-term economic recovery and sustainability. 

“Lebanon’s current C rating reflects our expectation that holders of Lebanese eurobonds will recover less than 35 percent of par following the eventual eurobond restructuring,” the agency added. 
 
According to Moody’s, fiscal and investment activity has been sharply curtailed, undermining long-term growth prospects and the provision of public services. 

Tourism and remittances from Lebanon’s diaspora continue to serve as vital sources of foreign exchange, but they are insufficient to address the structural imbalances in the economy. 

Public debt, estimated at 150 percent of the gross domestic product by the end of 2024, remains one of the highest globally, presenting a formidable challenge to fiscal sustainability, noted Moody’s. 

Aoun’s election has been welcomed by international observers as a turning point for Lebanon, which has been mired in political paralysis, economic collapse, and the aftermath of recent conflicts. 

The new president will lead efforts to form a fully empowered government, replacing the current caretaker administration led by former Prime Minister Najib Mikati “that has been operating with limited powers.” 

Aoun’s leadership of the Lebanese Armed Forces was instrumental in enforcing the November ceasefire between Hezbollah and Israel, according to Moody’s. 

The ceasefire has been critical in creating a stable environment for Lebanon’s recovery. Observers note that the role of the armed forces in securing the truce reflects Aoun’s ability to command respect and cooperation from various stakeholders, a quality deemed vital for navigating Lebanon’s complex political landscape. 


NMDC Energy opens advanced fabrication yard in Ras Al-Khair

Updated 14 January 2025
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NMDC Energy opens advanced fabrication yard in Ras Al-Khair

JEDDAH: A new fabrication yard with an annual capacity of 40,000 tonnes has opened in Saudi Arabia’s Ras Al-Khair Special Economic Zone, marking a significant development for the Kingdom’s energy sector. 

The facility, built by NMDC Energy — a UAE-based provider of engineering, procurement, and construction services — is equipped with advanced automation and digital technologies, according to a press release. 

Valued at 200 million dirhams ($54.4 million), the new yard marks an important step in strengthening NMDC Energy’s regional presence and supporting Saudi Arabia’s energy infrastructure, it added. 

The project aligns with the country’s Vision 2030 goals, enhancing its capacity to produce energy solutions while driving industrial growth. 

“The inauguration of the Ras Al-Khair yard represents a bold and exciting new chapter for energy cooperation for both the UAE and Saudi Arabia, which will bring vast tangible benefits to both nations,” said Mohamed Hamad Al-Mehairi, chairman of NMDC Energy. 

He added: “We foresee vast opportunities to collaborate and to pursue projects in areas that will maximize the value of the resources in both our nations as well as ensure that the UAE and KSA remain leaders in the regional energy transition.” 

Ras Al-Khair, located in Eastern Province, is a key industrial region that contributes 60 percent of Saudi Arabia’s gross domestic product. The new yard is expected to further drive growth in the region, fostering investment, trade, and job creation in the energy sector. 

The facility was officially inaugurated at the iktva Forum and Exhibition 2025, with Prince Saud bin Nayef bin Abdulaziz, governor of Eastern Province, in attendance. 

Spanning 400,000 sq. meters, the new yard will focus on offshore facilities fabrication and onshore modularization, playing a key role in Saudi Arabia’s growing maritime and offshore cluster. 

The company has reinvested SR5 billion ($1.33 billion) in the Saudi economy over the past five years, supporting the Kingdom’s economic priorities and diversifying its industrial base. 

“At NMDC Energy, we understand that the essence of Saudi Vision 2030 is that it seeks a strong, thriving and stable Saudi Arabia. That’s why we’re looking forward to bringing 51 years of experience to create new opportunities for prosperity for both KSA and the UAE, as well as supporting new and existing clients across the wider region,” said Ahmed Al-Dhaheri, CEO of NMDC Energy. 

He added: “Through our projects and collaborations in Ras Al Khair, we can build upon Saudi’s national priorities by helping to diversify the national economy, creating skilled jobs and harnessing the full potential of the skilled labor force.” 


Mada cards propel Saudi e-commerce to $4.65bn, up 29%

Updated 14 January 2025
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Mada cards propel Saudi e-commerce to $4.65bn, up 29%

RIYADH: Saudi Arabia’s e-commerce sales using Mada cards reached SR17.44 billion ($4.65 billion) in November 2024, a year-on-year growth of 29.4 percent, according to recent data from the Saudi Central Bank.

This figure includes payments for online shopping, in-app purchases, and e-wallet transactions, but excludes payments made through credit cards such as Visa and MasterCard.

The rise in e-commerce activity aligns with Saudi Arabia’s goal to make digital commerce 80 percent of the retail sector by 2030, with 70 percent of transactions conducted online by the same year.

Mada, the Kingdom’s national payment card system, supports both debit and prepaid services within its network. The cards utilize near-field communication technology for contactless payments, enabling secure transactions at both physical retailers and online. Mada cards play a crucial role in Saudi Arabia’s transition to a cashless economy.

In addition to the surge in sales, the number of e-commerce transactions also saw a significant increase, rising by 26.49 percent year on year to nearly 99 million transactions in November alone.

The spike in e-commerce activity in Saudi Arabia can be attributed to a combination of demographic and economic factors. With 60 percent of the population under the age of 30, the Kingdom is witnessing a growing trend toward digital consumption, largely driven by a tech-savvy youth demographic eager to embrace online shopping.

Furthermore, the expanding middle class and the rising influx of expatriates are contributing to greater financial capacity, while the growth of dual-income households further bolsters spending power.

This evolving economic landscape, paired with shifting consumer expectations for personalized and seamless digital experiences, is driving businesses to innovate and enhance their online offerings.

Ongoing infrastructure development—including the construction of new cities and modern shopping centers—adds to the momentum. As these trends continue, Saudi Arabia’s e-commerce sector is poised for substantial growth, reshaping the Kingdom’s retail environment in the coming years.

According to the latest data from the Ministry of Commerce, the Kingdom’s e-commerce sector saw a total of 40,953 businesses registered by the fourth quarter of 2024, reflecting a 10 percent year-on-year increase. Riyadh led in business registrations with 16,834, followed by Makkah and the Eastern Province. This uptick is a testament to Saudi Arabia’s push toward a digitally-driven, diversified economy, with e-commerce playing a central role in the transformation.

In parallel, the fintech sector also experienced notable growth, with the Ministry of Commerce reporting a 12 percent increase from the previous year. A total of 3,152 new fintech business registrations were recorded in the fourth quarter of 2024, highlighting the sector’s expanding role in supporting secure and seamless online transactions.

The growth of e-commerce and fintech is part of a broader trend of innovation across various sectors in Saudi Arabia. Recent reports highlight significant advances in cloud computing services, solar panel manufacturing, and real estate development—all in alignment with the goals of Vision 2030, which seeks to diversify the economy and promote sustainability.

With its rapidly expanding digital economy, Saudi Arabia is well-positioned to lead in the future of global e-commerce, as the country continues to embrace technological innovation and sustainability.