The kingdom will also back a plan to feed hundreds of millions of people by providing clean cooking fuels, Crown Prince Mohammed bin Salman said in Riyadh on Monday at a forum attended by heads of state.
Published On 25 Oct 2021
Saudi Arabia said Middle Eastern economies will be boosted by efforts to cut planet-warming gases and announced a fund to invest in carbon-capture technology.
“Climate change is an economic opportunity for individuals and the private sector,” Crown Prince Mohammed bin Salman said in Riyadh on Monday at a forum attended by several heads of state. Reducing emissions will “create jobs and strengthen innovation in the region.”
The kingdom will establish a fund to improve carbon sequestration and back a plan to feed hundreds of millions of people by providing them clean cooking fuels, Prince Mohammed said. The two initiatives will cost 39 billion riyals ($10.4 billion) and Saudi Arabia will contribute 15%.
The government will also open regional centers for early warning of storms, for sustainable fishing and for cloud seeding.
On Saturday, the prince pledged that Saudi Arabia would neutralize greenhouse gas emissions within its borders by 2060. It marked a seismic shift for the world’s biggest oil exporter, though officials included plenty of caveats and emphasized that Saudi Arabia and others would need to pump crude for decades to come.
The kingdom will try to develop facilities that capture and store carbon emissions as part of that commitment. The technology will be used for the production of blue hydrogen, a fuel made from converting natural gas and seen as crucial to the green-energy transition.
The net-zero goal “is a major step forward,” U.S. President Joe Biden’s climate envoy, John Kerry, said earlier on Monday. “It’s critical to have one of the world’s largest producers of fossil fuels step up at a moment when all countries, no matter their circumstances, need to come together.”
Other leaders at the Riyadh conference emphasized the need for governments to accelerate efforts to slow climate change.
“Just in the last two years we have seen fires in Siberia, in California, in the Mediterranean — unprecedented,” Pakistan’s Prime Minister Imran Khan said. “I hope that collectively we take this challenge much more seriously than we have done.”
Pakistan is stopping all coal projects and wants to make renewables 60% of its energy mix by 2030, he said.
Britain needs a 'booster for growth' as tax hikes threaten investment – CNN
London (CNN Business)Britain’s economy needs much more investment. Business says it’s unlikely to get it any time soon.
China's Special Bonds Can't Halt Property-Led Investment Slump – BNN
(Bloomberg) — China is betting that a pickup in infrastructure spending can spur investment and cushion a property-led slowdown which has dragged economic growth down to almost its lowest pace in more than three decades.
But because the property curbs are hitting government revenue from selling land, Beijing will need to ease its tough campaign to crack down on “hidden” local government debt if it wants a long-lasting revival in infrastructure spending.
Premier Li Keqiang last month urged local governments to make better use of the proceeds from the sale of 3.65 trillion yuan ($573 billion) in “special” bonds to counteract “downward pressure” on the economy. The bonds are used to fund specific projects rather than general expenditures and regional authorities have almost completed the sale of this year’s quota.
The quota could be expanded to 4 trillion yuan next year, according to state media reports, but even that amount of funding would be small relative to China’s total infrastructure spending needs. Bloomberg Economics estimates infrastructure investment will reach about 23 trillion yuan in 2021, which implies special bonds can only around 16% of that expenditure.
The remainder is mainly paid for with money from land sales and local government financing vehicles, which are companies set up by local governments to raise debt from loans and bond sales and then keep that borrowing off of government balance sheets. Both those sources of financing are under strain from property sector curbs and a campaign against “financial risks.”
Those financing vehicles raised less money in 2021 as Beijing ordered local governments to cut their “hidden” off-balance sheet debt. LGFV’s net local bond issuance — the excess of newly sold bonds over repayments — in the first 11 months of the year was 1.95 trillion yuan, down from 2.19 trillion yuan in the same period last year, according to Bloomberg estimates.
The platforms have found it harder than in the past to obtain loans from banks and from non-bank “shadow” financing because Beijing has been shrinking the shadow finance sector as part of its financial de-risking effort. They have also raised less from foreign investors: LGFV’s net issuance of dollar-denominated bonds through the end of last month more than halved to $5.7 billion.
The property crackdown is also reducing local government’s sales of land to property developers, a major source of funds for local government investment. Infrastructure spending growth has moved almost exactly in line with land sales revenue growth in recent years, according to analysis from Goldman Sachs Group Inc., while the correlation with special bond and LGFV bond issuance is less significant.
Beijing’s efforts to slow the real estate market began cutting into land sales volumes and prices this summer. Local government income from land sales shrank by more than 10% year-on-year in August, September and October, the largest and most sustained decline since 2015, according to Wei He, an analyst at Gavekal Dragonomics.
In the first 10 months of the year, infrastructure investment rose just 1% compared with the same period a year earlier, leaving local governments with unspent funds.
“The positive factors such as money that hasn’t been spent this year will be countered by the negative impact from land sales,” He said. “Therefore I do not expect a significant acceleration in infrastructure spending to materialize next year.”
To be sure, “special” bond issuance has been concentrated at the end of this year, which could translate into a slight pick-up in infrastructure spending in the first half of 2022 if the funds are quickly put to use. But local governments have been struggling to find suitable projects to fund with special bonds whose conditions stipulate that investments must generate enough income to repay the bond principal and interest.
Local governments’ land sale revenue could fall 10% year-on-year in 2022, according to Gavekal’s He. That means if Beijing really wants infrastructure investment to increase, it will need to loosen the constraints on LGFVs, compromising on its goal to control debt-levels in the economy.
“If the economy softens in 2022 and the government needs to increase infrastructure spending to support economic growth, there would be easing in financing for LGFVs,” said Ivan Chung, associate managing director at Moody’s Investors Service in Hong Kong.
©2021 Bloomberg L.P.
Infrastructure investment is here — how can we spend it wisely? | TheHill – The Hill
For nearly a year, the question around infrastructure spending has been, “How much?” At last, the nation has received an answer.
Although smaller than originally proposed, the $1 trillion bipartisan infrastructure spending bill recently signed into law by President BidenJoe BidenMarcus Garvey’s descendants call for Biden to pardon civil rights leader posthumously GOP grapples with chaotic Senate primary in Pennsylvania Trump social media startup receives commitment of billion from unidentified ‘diverse group’ of investors MORE will still ensure immense, much needed investments in the nation’s infrastructure.
But now that we’ve finalized the magnitude of our spending, it’s time to ask a new question: “How can we spend wisely?”
Decision-makers and the public need to remember that even the smallest of spending decisions can have enormous consequences. Not only can the choice of project type have lasting effects on an entire region, but even the construction practices selected for that project can determine its long-term success.
Maricopa County, Arizona, for instance, has long chosen to maintain concrete pavements with asphalt overlays. Yet, a report by the Arizona Department of Transportation has found that continuing to do so could cost the region an extra $1 billion over the next decade when compared to diamond grinding. Clearly, even decisions as small as maintenance technology choice can have an outsized impact.
This is not to say we should spend less. Our infrastructure spending as a percentage of GDP has fallen by roughly one-quarter over the past 60 years. Meanwhile, federal investment as a whole fell by 50 percent by the same metric between 2011 and 2018. Together, the recent Infrastructure Investment and Jobs Act and Build Back Better Act could reverse these trends and transform the nation’s infrastructure.
But to turn this raw investment into real impact will require us to spend more wisely. Thankfully, a growing body of research can allow us to do at.
New findings have given us the opportunity — and the mandate — to spend more boldly and intelligently than ever before. Here’s what we should do: Modernize planning tools to consider systems holistically, get out of technology ruts, and, most fundamentally, measure performance.
So, what do we mean by “considering systems holistically,” exactly? Rather than weighing the benefits of a project in isolation, holistic planning weighs how a project would also impact surrounding infrastructure and the wider region.
Consider the Red-Purple Bypass Project in Chicago: A modernization initiative of the Chicago Transit Authority, or CTA, this recently completed project rebuilt a junction between some of the city’s busiest El lines.
At first glance, building a short rail bridge seems like an isolated improvement. Yet, its cascading effects could be substantial.
By simply relieving a bottleneck, it could essentially unlock capacity equivalent to a new line — accommodating eight additional trains and 7,200 more passengers per hour. It will also improve reliability across the rail network, benefiting commuters in distant parts of Chicago. Evidently, thinking in terms of the wider network can make even localized projects hugely transformative.
This same holistic approach can also improve the nation’s ailing road networks.
Research indicates that moving to whole system decision tools provides as much benefit as spending roughly 10 percent more per year. And the tools to do this, referred to as asset management tools, are commercially available. States should adopt and apply such tools to inform all funds allocation questions immediately.
Thankfully, systems perspectives are starting to become standard practice. Leading transportation departments and metropolitan planning organizations (MPOs) are today implementing accessibility-based performance planning — a leading whole systems approach.
This form of planning considers projects based on how many jobs, health care facilities, parks, and other key amenities people can reach in certain times by certain modes of transport. With this kind of systems planning, even targeted improvements can expand access across entire regions.
But systems approaches alone cannot ensure efficient spending: We’ll also need to escape technology ruts.
Research shows that when states eschew tired tools and use a wide variety of materials and construction technologies, they can build a system far more economically. In fact, using a broad mix of paving materials and practices, including investing in long-lasting construction, provides the same benefits as spending 32 percent more per year while also cutting pavement emissions by 21 percent.
Finally, to realize lasting change, we need to measure the performance of the infrastructure we create.
Currently, we rarely measure the quality of our roads — chiefly because data on infrastructure has been hard to gather. And yet, without this data, effective decision-making is impossible. That’s where smart technologies can prove useful.
Various smartphone crowdsourcing tools are already gathering road quality and travel time data across the country at a fraction of the cost of conventional methods. With more investment, these tools could help cash-strapped transportation departments while helping to mitigate traffic jams — which currently cost drivers roughly $1,000 annually.
Over many years, a narrative has emerged in the public imagination: when immense, visionary investments are made — the Hoover Dam, the Interstate Highway Network — cities, regions and nations are transformed as a result.
Yet, transformative infrastructure projects are the product of more than just massive investment: their success also depends on cutting-edge tools and perspectives that maximize those investments.
As we shift from negotiation to implementation, we should embrace a new narrative to guide our infrastructure investments. We need to understand that spending boldly is just the first step: ultimately, we must spend shrewdly as well.
Jinhua Zhao, Ph.D. is director of MIT’s Mobility Initiative and an associate professor of transportation and City Planning.
Anson Stewart, Ph.D., is a research scientist at MIT’s Department of Urban Studies and Planning.
Franz-Josef Ulm, Ph.D., is the faculty director of the MIT Concrete Sustainability Hub. His research interests are in the mechanics and structures of materials. His research investigates the nano- and micromechanics of porous materials, such as concrete, rocks and bones and the durability mechanics of engineering materials and structures.
Randolph Kirchain, Ph.D., is the co-director of the MIT Concrete Sustainability Hub. His research focuses on the environmental and economic implications of materials selection and deals with the development of methods to model the cost of manufacture and the sustainability of current and emerging materials systems.
Research from the MIT Concrete Sustainability Hub is sponsored by the Portland Cement Association and the RMC Research and Education Foundation.
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