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Saudi Arabia's net direct foreign investment fell 7% in the first quarter
Saudi Arabia's foreign direct investment (FDI), as measured by the government, fell 7% from the previous quarter to the first quarter 2025. The kingdom is still lagging behind its ambitious FDI targets. In the three-month period ending March 31, the kingdom attracted 22.2 billion riyals (5.92 billion dollars) in FDI, down from 24 billion riyals (6.40 billion dollars) in the final three months of 2024. General Authority of Statistics figures show that net FDI increased by 44% in comparison to the same period last year, when the Kingdom received 15.5 billion riyals (about $4.13 billion). The Kingdom's Vision 2030 Economic Transformation Programme, which aims at reducing the dependence of the country on oil and expanding the private sector as well as creating jobs, is built around increasing FDI. Saudi Arabia is aiming to attract $100 billion in foreign direct investment by 2030. It has spent massively on "gigaprojects" (huge development projects) and expanded sectors such as sports, tourism and entertainment. The FDI numbers are still far below the target. Sources said that when the FDI target was announced for 2021, Saudi Arabia had been viewed as a capital source rather than a place to invest. Foreign investors may find it difficult navigating the business environment of the kingdom. A recent report from the International Monetary Fund said that the kingdom will likely post a budget deficit of $27 billion in this year. This deficit will be funded largely by borrowing. Saudi Arabia is the world's largest issuer of emerging market dollar debt, according to the IMF, and its net debt of 17% of GDP makes it one of the lowest indebted countries globally. Riyadh is encouraging foreign companies to invest in the country. Saudi Arabia has been the mandatory regional headquarters for companies that want to win state contracts since 2021. The government also announced that it would update the existing investment laws in order to promote transparency and equal treatment for local and foreign investors. ($1 = 3,7504 riyals). (Reporting and editing by Kate Mayberry; Pesha Magd)
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Document reveals EU plans to add Carbon Credits to New Climate Goal
A document from the European Commission, seen by, revealed that the Commission will propose to count carbon credits purchased from other countries toward the European Union’s 2040 climate goal. On July 2, the Commission will propose a legally-binding EU climate target 2040. In the beginning, the EU executive planned to reduce net emissions by 90% compared to 1990. However, it has been more flexible in recent months, as a result of pushback from countries such as Italy, Poland, and the Czech Republic who were concerned about costs. A summary of the internal proposal by the Commission, which was seen by, stated that the EU could use "high quality international credits" to achieve 3% of its emissions reductions towards the 2040 target. The document stated that credits would be phased-in from 2036 and that EU legislation will later specify the quality and origin criteria for the credits, as well as details on how they will be purchased. This would reduce the amount of emissions reductions and investments needed from European industries to reach the 90% target. The EU would purchase "credits" for the part of the target that is met by credits from projects abroad, such as forest restoration in Brazil, rather than reducing CO2 emissions in Europe. These credits, say their supporters, are an important way to raise money for projects that reduce CO2 emissions in developing countries. Recent scandals revealed that some projects that generated credits did not achieve the claimed climate benefits. In the document, the Commission said it would add additional flexibility to the 90% goal, as Brussels tries to contain the resistance of governments who are struggling to finance the green transition along with other priorities, such as defence, and from industries that say ambitious environmental regulations harm their competitiveness. The document stated that these include the integration of credits from projects that remove carbon dioxide from the atmosphere in the EU's market for carbon credits so that European industry can purchase these credits to offset a portion of their emissions. The draft also gives countries more flexibility in which sectors of their economy will do the heavy lifting in order to reach the 2040 target, "to help achieve targets in an efficient way". Un spokesperson for the Commission declined to comment on upcoming proposals, which may still be altered before they are published next week. The EU countries, the European Parliament and the European Commission must negotiate on the final target. They could also amend what the Commission suggests. (Reporting and editing by Timothy Heritage, Kate Abnett)
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China's flood-hit Guizhou is hit by heavy rain for the second time this week
On Saturday, heavy rains again hit China's southwest Guizhou Province. The city of Rongjiang was half submerged in floodwaters for the second time this past week. Residents were forced to evacuate higher ground. Rongjiang, a city of 300,000 people located at the confluences of three rivers, was inundated by torrential rains earlier this week, which caused six deaths and forced over 80,000 residents to flee. The city average rainfall for June was twice as much rain in 72 hours. The city's flood emergency level was raised to its highest level by authorities on Saturday in response to a new round of flooding. State broadcaster CCTV reported that the benchmark hydrological station at one of the rivers predicted the maximum water level to reach 253.50 meters (832 ft), surpassing the safety threshold by two metres. The Guizhou Provincial Government said that the floods began earlier this week when the water reached a peak of 256.7 meters, which was the highest level since 1954. They blamed "the extreme weather" for the flooding. Floods in Southwest China will have a major impact on local economies. Rongjiang has been removed from the national list of poverty in 2020. The unexpected boom in tourism began after the local soccer league, nicknamed "Village Super League", became a sensation on social media and attracted thousands of tourists and fans. The soccer pitch was submerged up to 7 metres on Tuesday. China has been fighting summer flooding for millennia. But some scientists claim climate change is leading to heavier rains and more frequent floods. Chinese officials warn that massive flooding could trigger "black swans" with devastating consequences such as dam collapses. CCTV, citing Saturday's report by the Ministry of Water Resources, reported that 13 major rivers were affected by storms in southern China during the past two weeks and rose above their warning level. (Reporting and editing by Shanghai & Beijing Newsroom)
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Senate Republicans want to end the EV tax credit before September 30
The U.S. Senate Republicans released a revised budget and tax bill late Friday that would eliminate the $7,500 credit for new electric vehicles and leases as well as $4,000 credit for used EVs by September 30. Prior to the new version, the credit would have been terminated 180 days after it was signed into law for new vehicles, 90 days after that for used vehicles. It would also have been terminated immediately for vehicles that were not assembled in North America or those that met other requirements. The Republicans have targeted EVs in a variety of ways, reversing former president Joe Biden's policies that encouraged the use of electric vehicles and renewable energies to combat climate change and reduce emission. The House of Representatives' version would extend the $7,500 tax credit for new-EVs through 2025 and 2026, respectively, for automakers who have not sold 200,000 electric vehicles before it is eliminated. The Senate bill includes a provision that eliminates fines for failure to comply with the requirements. Corporate Average Fuel Economy rules In a move designed to make it easier for automakers build gas-powered cars. The Republican bill exempts auto loan interest from tax for new cars manufactured in the U.S. until 2028. However, it phases out for individuals making more than $100,000 per year. Senate Republicans Dropped a bid to make the U.S. Postal The bill will scrap thousands of electric cars and charging equipment after a decision by the Senate Parliamentarian. The U.S. The U.S. President Donald Trump This month, a resolution was signed Congress has approved a bill to block California's historic plan to stop selling gasoline-only cars by 2035. This plan was adopted by 11 states, representing one third of the U.S. automobile market. (Reporting and editing by David Shepardson)
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China's flood-hit social security network expands as extreme rainfall takes its toll
China has increased the financial protections offered to segments of the population who are affected by flood control measures during extreme rain, including direct compensation and payment for livestock losses. Diverting floodwaters into areas adjacent to rivers in China is an important step to manage downstream flooding. China, as extreme rainfall increases, is using these areas more and more. Some of them were unused and populated with farms, crops and even residential structures, which has exacerbated social tensions. According to the revised rules for compensation related to flooding diversions, released late Friday, the central governments will now be responsible for 70% of the compensation funds. Local governments are responsible the remainder. The ratio used to be determined based on the actual economic losses of the local governments and their fiscal condition. For the first time, compensation will be paid for livestock and poultry that are unable to be relocated before floodwaters arrive. Prior to this, compensation was only available for the loss of working animal. The summer of 2023 saw almost 1,000,000 people relocated from Hebei, the province that borders Beijing. Record rains forced the authorities to divert water to populated areas to store it. This angered many who were angry about the loss of their homes and farms to save Beijing. China has designated 98 flood diversion zones spanning major rivers basins, including the Yangtze River Basin which is home to one-third of the population. Eight flood storage areas have been used during the Hebei floods of 2023. China Meterological Administration officials told reporters that since the East Asia Monsoon began in early June, the precipitation on the middle and lower Yangtze River has been two to three times greater than normal. They said that in other parts of China the daily rainfall measured at 30 meteorological stations, including Hubei and Guizhou, broke records during June. Guizhou, China, was at the center of China's flood relief efforts this week. One of its cities had been hit by flooding of a magnitude that only happens once every 50 years and with a speed that stunned its 300,000 inhabitants. This prompted Beijing on Thursday to pledge to relocate vulnerable populations and industries into low-flood zones and to allocate more space to flood diversion. (Reporting and editing by Kim Coghill; Ryan Woo)
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Denmark Extends Operating Life of Two Offshore Wind Farms
The Danish Energy Agency (DEA) has extended the production permits for the Nysted and Middelgrunden offshore wind farms, enabling the projects to continue producing electricity for 10 and 25 more years, respectively.These are two of the oldest offshore wind farms in Denmark, now granted an extended lifespan.Middelgrunden was originally granted a production permit in 2000, followed by Nysted three years later.To support its decisions, DEA required, among other things, an independent analysis of the remaining lifespan of the installations. In addition, the owners must perform extended annual maintenance inspections.Nysted Offshore Wind Farm is owned by Ørsted, PensionDanmark, and Stadtwerke Lübeck. It consists of 70 turbines with a production capacity of 161 MW, enough to cover the electricity needs of more than 130,000 households.Middelgrunden, owned by HOFOR and the Middelgrunden Wind Cooperative, is located just 3.5 km off Copenhagen near the Trekroner Fort and has become a familiar part of the cityscape for residents of Copenhagen and North Zealand. Its 20 turbines can supply approximately 20,000 households with green electricity annually.“It’s positive that wind turbines over 20 years old are getting the opportunity to continue producing green electricity for many more years. This primarily benefits the green transition, but it's also a sustainable use of resources that the facilities can continue operating safely and responsibly for a longer period,” said Stig Uffe Pedersen, Deputy Director of the Danish Energy Agency.Earlier in June, DEA also approved a 10-year extension for the Samsø offshore wind farm’s electricity production permit.
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California regulator: California should increase fuel imports and halt margin cap
California's Energy Regulator on Friday suggested new rules that would encourage private investment in fuel imports, and put a hold on the refiner profit limit. The regulator hoped to prevent gasoline prices in California from soaring as the state prepares for the closing of two major refineries. California Energy Commission's recommendations came as a response to Governor Gavin Newsom's letter requesting changes in the state energy transition effort by July 1. California will face higher fuel prices due to the planned closures of Phillips 66's and Valero Energy's refineries. CEC Vice-Chair Siva Gunda admitted that the closure of refineries could increase fuel prices in California. The state already has the highest gasoline prices in the U.S. Gunda said, however, the sticker shock will only be temporary. CEC estimated that gasoline prices would increase 15-30 cents per gallon immediately after the closure of refineries. According to AAA, retail gasoline prices in California averaged $4.61 a gallon on Friday. This is higher than the national $3.21 average. Gunda, CEC's Director, said that the CEC is looking at ways to increase capacity of third-party import terminals, bringing in and distributing more gasoline and jetfuel, while keeping existing refineries operational. In order to help with these efforts, the CEC has recommended that the program which capped the maximum profits refiners could earn from gasoline sales in the State be halted. The CEC said that additional analysis is required to ensure the program works as intended for protecting consumers. The statement said that the pause would last for "a reasonable length of time", but did not specify exactly how long it would be. The CEC asked Newsom to also take steps to stabilise crude oil production within the state. California's crude output has steadily declined from its peak of more than 1 million barrels a day in the middle 1980s to less that 300,000 bpd in last year. This is according to U.S. Government data dating back to 1981.
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Canada's steel manufacturers tell the government that its tariff protection measures for steel are not enough
Two of the Canadian steel industry representatives present at the meeting said that the measures taken by the government to protect the industry against the effects of U.S. Tariffs were insufficient. Steel producers met Patrick Haley, Assistant Deputy Minister for Trade and Finance, and other ministry officials on Thursday. They told them that the measures announced earlier in the month did not protect the steel industry from steel dumping, and could lead to mass layoffs. U.S. president Donald Trump raised import duties on aluminum and steel to 50%, up from 25% in the beginning of this month. Canada is the largest metals seller to the United States. Canada responded by announcing a series of measures including new tariff-rate quotes of 100% of the 2024 levels for imports of steel from non-free-trade agreement partners. At the meeting, representatives of the industry asked the government to extend the tariff quotas for unfair trade practices to all countries that have free trade agreements. They said that Europe and Asia are diverting their goods to Canada in order to avoid U.S. Tariffs, which makes domestic steel uncompetitive. Catherine Cobden is the President and CEO of Canadian Steel Producers Association. She said, "We do not think that the measures announced will meet our needs in this difficult time." Cobden was present at the meeting on Thursday with officials from the finance ministry. In a separate press release on Thursday, the Canadian Steel Producers Association stated that in its current format, the tariff-rate quota would do little to help its industry. The Canadian Steel Producers Association said that since March's first U.S. Tariffs, Canada's steel sector has lost 1,000 workers. More layoffs are possible, according to the association. Keanin Looomis, President of the Canadian Institute of Steel Construction (which includes steel fabricators and constructors), said that Thursday's meeting of the government was heavily focused on steel producers, pointing out that finished steel imported into Canada has no tariff protection. Loomis was also present at the meeting. The Canadian Finance Ministry responded to in a text message that its measures were a comprehensive, strategic package for the protection of producers and workers and a first step. Mark Carney, the Prime Minister of Canada, has threatened to increase the counter-tariffs for U.S. steel and aluminum in case Canada fails to reach a wider trade agreement with Trump by 21 July. Trump abruptly ended trade talks with Canada on Friday over its new tax that targets U.S. tech firms. These are temporary, calibrated measures which could be extended depending on the results of the ongoing talks with the United States. A spokesperson for the Finance Minister said that we are ready to adapt our response as necessary.
Bangladeshi migrants are at risk of abuse after being exiled from the Gulf due to climate change
Climate change forces families abroad to send relatives
Migrants are at risk of sexual abuse, wage denial, and other forms of abuse.
Experts call for better protection in host cities
Tahmid Zami Tahmid Zami
"Vulnerable individuals who are pushed to their limits by climate shocks make a big gamble in order to pay for migration but end up facing abuse," Ritu Bharadwaj said, one of the authors.
The study of Bangladeshi migrants from climate-vulnerable regions who worked in the Gulf revealed that almost all of them had experienced at least one form exploitation, whether it was employer abuse, sexual assault or wage denial.
The International Institute for Environment and Development says that migrants, who are mostly from Saudi Arabia, United Arab Emirates and Oman, become trapped in a "modern form of slavery" when they take out loans or sell land to cover the $4,021 required to find work abroad.
The think tank in London spoke with 648 households about the impact of climate change on those living at the frontline.
On the Move
As the world has become warmer, migration has increased in the last two decades, depriving people of a stable life, future, or reliable income.
In the study, it was found that households in disaster-prone areas were twice as likely to relocate within Bangladesh and 1.6 times more likely than those in less dangerous places to do so. In the last decade, 88% of families sent someone overseas. This is up from just 9% in 2001-2010 or 4% in 1990s.
Bangladesh is the seventh most vulnerable nation to climate change. Disasters such as floods and cyclones are increasing in frequency.
Climate-related disasters cost the economy four times more than they did in 1960-1990. They now amount to $558 millions annually.
The study found that this cost each family living in the disaster-prone coastal region more than $870 per year. This leaves families with less money for necessities of life like food, health, and education.
Farmers, fishermen and small business owners were among those most affected. Their livelihoods were often severely impacted, forcing them into seeking out new opportunities.
Take Pirojpur, a district on the southern coast in Bangladesh that has been hit by cyclones and floods.
Abu Musa, a teacher in Dhaka, said that he sent his brother there to work as a guard because the monsoon last year destroyed his family's crops and fishing.
Many people who moved to other cities faced new problems and risks in their new homes, especially those who had relocated abroad.
According to the study, migrants working in the garment and construction industries in large cities are denied compensation for workplace accidents while domestic workers face beatings or inadequate bedding and food.
Bharadwaj said that migrants who move abroad face greater risks because they are forced to recover their high start-up costs.
The study found that employers often confiscate workers' passports, barring them from leaving their workplace, denying the chance for them to contact family or the embassy.
The survey revealed that women suffer the most. More than 80% of respondents reported abuse such as beatings or sexual harassment by their hosts.
Where to turn?
International Labour Organization (ILO) says that as the number of Bangladeshi migrants to Gulf countries reaches millions, embassies struggle to monitor the conditions or to mount rescues.
The sad thing is that when workers are abused, they don't know who to turn to, said Mohammad Rashed Alam Bhuiyan. He is an assistant professor at Dhaka University, studying climate migrants from Bangladesh.
He said that the government could outsource services such as shelter or health care to private organizations.
Md Shamsuddoha of the Center for Participatory Research and Development in Dhaka, Bangladesh, stated that helping communities reduce climate-related losses could also help to reduce the risk of abuse overseas.
He said that if families received early warnings about disasters and cash assistance, they might be better informed, and more likely to remain.
Experts have also pointed out the complex web of brokers who help migrants find work from the Middle East up to Malaysia.
Bharadwaj, from IIED, says that these middlemen are frequently accused of fraud and deceit. This highlights the need to track migrants better.
(source: Reuters)