BRUSSELS: The EU proposed tougher car emissions targets on Wednesday including a credit system for carmakers to encourage production of electric vehicles and fines for exceeding carbon dioxide limits.
The EU executives’ proposal aims to curb greenhouse gases from transport as part of the bloc’s push to cut emissions by at least 40 percent below 1990 levels by 2030.
But it has already met with opposition from nations with big automotive sectors, such as Germany.
The European Commission is keen for legislation to stimulate European industry to develop electric vehicles, afraid that it is falling behind China, Japan and the US.
“The competition is here,” Commission Vice President Maros Sefcovic said, citing the use of Chinese electric cars by Brussels taxi firms. “The car was invented in Europe and I believe it should be reinvented here.”
The proposal calls for reduction of 30 percent of average CO2 emissions by 2030 from carmakers’ fleets compared with 2021 levels. It also sets an interim of a 15 percent reduction by 2025 to help ensure automakers kick start investment early.
If they are found in breach of new rules, carmakers face potential fines in the millions of euros, with penalties set at 95 euros for every gram of CO2 above the limit and for each new vehicle registered in that year.
The draft bill would allow carmakers to offset their overall target if the share of zero and low-emission vehicles in their fleet surpasses a benchmark set by regulators.
The bar for low-emissions vehicles is set at 50 grams per kilometer — ruling out most hybrid vehicles.
Unlike California’s system — viewed by many in the sector as the leading laboratory for policy on electric cars — EU regulators shied away from quotas.
Heralding tough negotiations with member states and European Parliament before the bill becomes law, companies called the measure too ambitious, while environmental campaigners said it did not go far enough.
German Foreign Minister Sigmar Gabriel told the Commission on Tuesday he was against any toughening of European car emissions targets by 2025, saying stricter rules would cost jobs and growth.
European carmakers have lobbied for the emissions reduction target to be set at 20 percent and have called for compliance to be conditional on consumer uptake of electric cars.
In a nod to manufacturers’ concerns, the Commission is set to earmark €800 million ($928 million) to support the roll out of charging points for electric vehicles and €200 million for battery development.
Despite the push back from industry, outrage over Volkswagen cheating on emission tests in the US has put pressure on EU regulators to tighten controls, with several European governments and cities announcing bans of petrol-fueled cars within the next two decades.
“We want the European automotive industry get back in the race for global leadership on clean vehicles,” EU climate Commissioner Miguel Arias Canete said.
The Commission also set targets for public authorities to source a percentage of either low emission or zero emission vehicles in their public procurement by 2030, for example garbage trucks.
— Reuters
EU plans credit system, fines to push low-emission car production
EU plans credit system, fines to push low-emission car production
Saudi Arabia’s holdings in US treasuries rise to $135.9bn
RIYADH: Saudi Arabia’s holdings in US treasuries increased for the eighth consecutive month in March, reaching $135.9 billion, a rise of 3.66 percent compared to the previous month.
According to official data released by Washington, the Kingdom was ranked 17th among the largest investors in such financial instruments in March.
The report noted that Saudi Arabia’s holdings of US Treasuries were distributed among long-term bonds worth $107.3 billion, representing 79 percent of the total.
On the other hand, the Kingdom’s short-term bonds were worth $28.6 billion in March, accounting for 21 percent of the total value.
In February, the Kingdom’s holdings in US treasuries stood at $131.1 billion, compared to $133.5 billion in January and $132 billion in and December,
The data suggested that Japan was the largest investor in US treasury bonds in March, with holdings totaling $1.18 trillion, representing a rise of 1.16 percent from February.
China and the UK followed, with portfolios valued at $767.4 billion and $728.1 billion, respectively.
Luxembourg and Canada were ranked in the fourth and fifth spots, with treasury holdings amounting to $399.3 billion and $359.1 billion, respectively.
Ireland secured the sixth rank in the list with holdings of $317.8 billion, closely followed by Belgium with portfolios worth $317.1 billion.
The Cayman Islands came in the eighth position with treasury reserves worth $302.9 billion, followed by France and Switzerland, with assets amounting to $283.1 billion and $262.9 billion, respectively.
Taiwan was ranked eleventh on the list, with treasury holdings worth $259 billion.
India came in the twelfth spot with assets amounting to $240.6 billion, followed by Brazil and Singapore, which had holdings worth $227.1 billion and $208 billion, respectively.
Earlier this month, a report released by the Saudi Central Bank, also known as SAMA, revealed that international reserve assets declined by 2 percent in April to SR1.66 trillion ($440 billion) compared to the previous month.
However, the Kingdom’s foreign reserve assets jumped 3 percent in April compared to the same period of the previous year.
Fintech firm Hala gets SAMA approval to offer debt-based crowdfunding solutions
RIYADH: Saudi businesses are set to gain access to new crowdfunding solutions as Hala Payments Co. has received licensing approval from the Kingdom’s central bank to offer debt-based products.
The Saudi-based fintech platform offers inbound and outbound payment options to small and medium enterprises, with over 50,000 merchants currently using its services, according to its website.
With this approval, the total number of companies licensed to engage in this activity in the Kingdom has reached 11, while authorized finance companies now stands at 62, stated the Saudi Central Bank in a press release.
Debt-based crowdfunding provides a pathway for projects or businesses in need of funding. Instead of relying on a single lender, borrowers secure loans from multiple investors.
This model is particularly advantageous for small businesses or individuals who may face challenges obtaining loans from traditional banks. Essentially, it serves as a dual opportunity: borrowers receive the necessary funding, while investors earn returns by directly lending money.
In January, SAMA issued a license to Thara, a debt crowdfunding platform, to operate in the Kingdom. The fintech firm specializes in financing real estate development projects, connecting individual and institutional investors with investment opportunities through Murabaha products.
This decision to issue licenses falls within the framework of the central bank’s efforts to support and empower the finance sector, aimed at enhancing the effectiveness and flexibility of transactions, added SAMA.
It also seeks to foster innovation and promote it, with the objective of enhancing the level of financial inclusion in the Kingdom and extending such services to all segments of society.
SAMA emphasized the importance of dealing with licensed or authorized financial institutions, which can be verified by visiting its official website.
The central bank warned that it may take any necessary actions, such as conducting on-site visits, meeting with the company’s executives, and reviewing its regulations, procedures, and records, to verify that the debt-based crowdfunding company has met all its requirements.
It added that the license can be canceled if the firm requests cancellation, provides false information, violates rules or laws, delays starting activities for six months, or suspends operations for over three months without SAMA’s approval.
Mawani issues new licenses to strengthen ports sector in Saudi Arabia
RIYADH: The Kingdom’s seaport activities and logistics sector are set to improve, with the Saudi Ports Authority issuing new licenses in multiple areas of operation.
In a press statement, the authority, also known as Mawani, said that issuing these permits aligns with its goal of developing port business in the Kingdom with high efficiency and quality.
Mawani revealed that permits have been issued in various areas of operations, including pilotage, maritime support, marine traffic signals, and ship repair and routine maintenance.
The statement added that licenses were also issued for container handling and port storage services, and maritime consultancy activities.
The issuance of these new permits is part of Mawani’s broader strategy to position Saudi Arabia as a global logistics hub by the end of this decade.
Saudi Arabia’s National Transport and Logistics Strategy seeks to increase the sector’s contribution to the Kingdom’s gross domestic product to 10 percent from the current 6 percent by 2030.
In the statement, Mawani further revealed that additional licenses were given to activities like bunkering ships in terminals, waste recycling and ship waste management, as well as, hydrographic surveying, and port work training.
In January, the authority announced that it established new ship anchorage areas in the Kingdom’s King Fahd Industrial Port in Yanbu.
According to a statement, newly established docking zones will help modernize several port logistical services, including delivering ships with supplies and fuels, said Mawani in a statement.
The body also noted that these new anchorage zones will increase the terminal’s operational performance indicators and reduce ship docking times.
In December 2023, Mawani garnered 79.01 points in the UN Conference on Trade and Development’s Liner Shipping Connectivity Index for the fourth quarter of 2023, compared to 77.66 points issued in the previous three months.
Moreover, Saudi Arabia also progressed in container handling, moving from 24th to 16th in the Lloyd’s List One Hundred Ports rankings.
Similarly, the Kingdom climbed 17 places in the World Bank’s Logistics Performance Index, securing the 38th position out of 160 countries.
Oil Updates – prices rise on slower US inflation, strong demand
SINGAPORE: Oil prices extended gains from the previous session on Thursday on signs of stronger demand in the US, where data showed slower inflation than markets expected, bolstering the argument for an interest rate cut that could drive greater consumption, according to Reuters.
Brent futures rose 32 cents, or 0.4 percent, to $83.07 a barrel at 9:20 a.m. Saudi time, while US West Texas Intermediate crude gained 31 cents, or 0.4 percent, to $78.94.
“A more tamed read for US April inflation and a far weaker-than-expected read in US retail sales seem to offer room for the Fed to consider earlier rate cuts, with market expectations leaning more firmly for policy easing to kickstart in September this year,” said IG market strategist Yeap Jun Rong.
“The larger-than-expected drawdown in US crude inventories for last week also offered some calm, while geopolitical tensions continue to rock on in the Middle East.”
US consumer prices rose less than expected in April in a boost to financial market expectations for a September rate cut by the Federal Reserve, which could temper dollar strength and make oil more affordable for holders of other currencies.
Elsewhere, US crude oil, gasoline and distillate inventories fell, reflecting a rise in both refining activity and fuel demand, showed data from the Energy Information Administration.
Crude inventories fell 2.5 million barrels to 457 million barrels in the week ended May 10, the EIA said, versus the 543,000 barrel consensus analyst forecast in a Reuters poll.
Signs of slowing inflation and stronger demand were supporting prices, ANZ Research also said in a client note, as is geopolitical risk, which it noted remains elevated.
In the Middle East, Israeli troops battled Hamas militants across Gaza, including Rafah, which had been a civilian refuge.
Ceasefire talks mediated by Qatar and Egypt are at a stalemate, with Hamas demanding an end to attacks and Israel refusing until the group is annihilated.
Gains were constrained after the IEA trimmed its forecast for 2024 oil demand growth, widening the gap between its view and that of producer group OPEC.
Global oil demand this year will grow by 1.1 million barrels per day, the IEA said, down 140,000 bpd from its previous forecast, largely due to weak demand in developed nations of the Organization for Economic Co-operation and Development.
Saudi minister and US counterpart agree road map for cooperation in energy sector
- During meeting in Riyadh, Prince Abdulaziz bin Salman and Jennifer Granholm discuss ways to enhance energy-related collaborations
- They also review Kingdom’s efforts to tackle climate change through local and regional initiatives, including the Saudi and the Middle East green initiatives
RIYADH: The Saudi minister of energy, Prince Abdulaziz bin Salman, and the US secretary of energy, Jennifer Granholm, on Wednesday agreed a road map for cooperation between the countries in the sector.
During a meeting in Riyadh, they also discussed ways in which collaborations might be enhanced in energy-related fields such as carbon management, clean hydrogen, nuclear energy, electricity and renewables, innovation, energy-sector supply chain resilience, and energy efficiency. The two countries signed a Partnership Framework for Advancing Clean Energy in July, 2022.
The officials also reviewed the Kingdom’s efforts to tackle climate change through local and regional initiatives based on a circular carbon economy, including the Saudi and the Middle East green initiatives, the ministry said.
The new road map represents a joint plan for energy cooperation that establishes a timeline and outlines critical projects for collaboration, officials said.
Both sides agreed to engage in various activities to implement the road map, including: exchanges of knowledge on policies related to the joint plans, such as standards and regulatory frameworks; enhancement of joint research and development, especially in the field of new technologies; and the building of human capital through training and exchanges of expertise.
