Cost‒Benefit Analysis for Petrochemical Projects

Cost‒benefit analysis (CBA) has been used to assess investment projects for decades with the aim of quantifying their externalities and potential impacts on social welfare. However, the domain where CBA is applied has been primarily limited to direct public financing in several sectors where such impacts are perceived to be the most pronounced. This study explores the applicability of CBA principles to petrochemical investment and utilizes the proposed framework to assess a sample ethylene production project.

China’s BRI and Saudi Vision 2030: A Review to Partnership for Sustainability

This study reviews the comprehensive strategic partnership between Saudi Arabia and China and the interconnection between China’s Belt and Road Initiative (BRI) and Saudi Vision 2030. These connections have significantly improved cooperation in trade, investment, energy and new technology development over the last seven years. Saudi Arabia can further its cooperation with China on the circular carbon economy (CCE) through both bilateral and multilateral frameworks.

China’s Energy Investment Through the Lens of the Belt and Road Initiative

The Chinese government launched the Belt and Road Initiative (BRI) in 2013 as a vision to promote growth and cooperation among the economies of Asia and Europe. Over the five years since its inception, the BRI has expanded in both geographic and strategic scope. As of early 2019, 141 countries and 29 international organizations have joined the initiative, which has broadened from targeting infrastructure connectivity and logistics to wider goals of unimpeded trade, financial integration, policy coordination and  people-to-people bonds. Thousands of BRI projects have already been approved, with a total investment potential of $1.2-1.3 trillion by 2027 (IDSA 2019, Morgan Stanley 2018). 

Energy Governance in China: The Structures and Processes of Government Decision-Making

This paper describes the current governance structure of China’s energy sector. The interplay between central government, the Communist Party, regional governments and key economic actors within the framework of China’s five-year planning processes are complex and constantly evolving. As such, the structure and processes for energy governance are similarly complex. The oversight and process for governing China’s energy sector will continue to change as the country transitions from an emerging to a mature economy. This paper provides an overview of how key decisions in the energy sector are currently made, implemented and monitored in China as the country is consolidating its policy and decision making processes. The paper’s aim is to provide insights for those outside China who wish to better understand Chinese energy governance, from policymakers, researchers and academics, to diplomats, or corporations wishing to invest in the country.

The Impacts of Industrialization on Freight Movement in China

China’s rapid economic growth has enabled the fast development of freight transport across the country. What might the impact of future economic growth be on freight movement in China? To answer this question, this paper establishes the link between key indicators of industrialization and freight transport through the use of a dynamic vector autoregressive model. Based on the analysis of two different scenarios, the study finds that: China’s freight turnover could double out to 2030 if the country remains at the later stages of industrialization. China could reduce the volume of its freight transport by transforming its process of industrialization through coordinated urban planning, new materials, developing high-tech industries and expanding the service sector. Together, these measures could see freight transport drop by 2.6 trillion tonne-kilometer, 6% less than under the business-as-usual model. Changes to the country’s economic structure may also lead to structural changes in modes of freight transportation, including an increased share for rail, the growing use of automotive transportation, and the increased use of containers in an integrated freight transport system.

Deepening Cooperation Between Saudi Arabia and China

In recent decades China and Saudi Arabia have gradually deepened their collaboration in many areas. Five indicators are used to assess the overall progress of the two countries’ collaboration and to help form recommendations for ways to improve the integration between China’s Belt and Road Initiative (BRI) and Saudi Vision 2030. The strategic partnership between China and Saudi Arabia has presented opportunities for a new level of collaboration at a time when both countries are seeking economic transformation and sustainable growth. This discussion paper shows that: A structured policy coordination framework has facilitated cooperation in building local industries and constructing new cities in Saudi Arabia. Despite the progress made to date, significant gains can still be achieved by lowering trade barriers and improving the bilateral coordination of national regulations, planning, and investment. Total investment flows between China and Saudi Arabia increased more than twentyfold from 2005- 2015. Opening up the domestic market in both countries and increasing Belt and Road Initiative (BRI) related investments may help deal with challenges in the global investment environment and improve the alignment of domestic development goals. Establishing new financial instruments that build on the existing networks and a potential arrangement of Chinese yuan settlement can increase investment flows. From 2011-2016, there was a 50% increase in Chinese citizens working in the Kingdom and over 1,000 Saudi students were studying in China each year — an exchange of human capital that has benefited both countries. Three strategic areas are identified for deeper cooperation: Extending energy cooperation from traditional oil and gas to new low carbon technologies. Integrating petrochemical industry development across the value chain. Building local strength in industrial capacity by capturing the market potential of new construction. This paper also identifies five steps that could enhance the existing model of collaboration: defining a bridging strategy, building capacity, establishing a free trade agreement, encouraging a new partnership for financing, and building a joint research platform for energy collaboration.

Toward Economic Prosperity Through Industrial Energy Productivity Improvement

In this report, we explore the main trends and policies that relate to industrial energy productivity in China and Saudi Arabia, focusing on energy efficiency, structural economic reform, industrial upgrading and energy pricing. Our objective is to increase shared understanding on these issues as both countries deepen their engagement as part of China’s Belt and Road Initiative and Saudi Arabia’s Vision 2030.

The Implications for the Power Sector from Innovation by Startup Companies

We compiled a multi-regional database of 320 startups from 36 countries whose focus is on new technologies in the electricity sector. To reach this number, we performed internet searches with neutral key words such as ‘startups,’ ‘electricity,’ ‘innovation,’ and avoided searching for specific technologies to reduce biases. We used four languages for these searches: Arabic, Chinese, English and Spanish.  

The RCEP and its Potential Impact on Saudi Regional Exports

On November 15, 2020, 10 Southeast Asian economies, joined by Australia, China, Japan, New Zealand and South Korea, formed the Regional Comprehensive Economic Partnership (RCEP) – the world’s largest trading bloc, representing about a third of the global economy (BBC 2020). This comprehensive agreement covers import tariffs and other market access barriers, investment facilitation, standardization of rules and procedures, and economic and technical collaboration, among other areas.

The Impact of the US-China Trade Dispute on the GCC

The trade dispute between the United States (U.S.) and China has escalated since March 2018. On March 22, 2018, U.S. President Donald Trump signed a memorandum directing the U.S. government’s response to the investigation on China’s economic activities, trade policies and practices related to technology transfer, intellectual property and innovation under section 301 of the U.S.

Assessment of Coronavirus Effects on Oil Demand Implied by Price Elasticities

There appears to be a significant response in the crude oil markets to the coronavirus outbreak that originated in Wuhan, China, in December 2019 and has since spread globally. Many cities in Hubei, of which Wuhan is the capital, have been quarantined, with many airlines suspending flights to mainland China.

The Impact of China’s Oil Cap Pathway on Saudi Arabia’s Economic Transition

On October 15, several leading Chinese research institutes released a joint study, “Research on China’s Oil Consumption Peak and Cap Plan” (ERI 2019). It analyzes China’s future oil demand and the policy instruments it could use to cap its use of oil. The latter would help China to manage domestic environmental pollution and limit global warming to 1.5 degrees Celsius (°C) above pre-industrial levels.

What Innovations Are Chinese Electricity Startups Pursuing?

We provide a snapshot of the innovations that Chinese electricity startups are pursuing and compare them with the innovation efforts of their worldwide and Gulf Cooperation Council (GCC) counterparts. We contrast types of innovation, technological domains and focuses on megatrends within the industry.

Balancing China’s Energy Security and Its Transition to Carbon Neutrality

At the United Nations (UN) General Assembly’s seventy-fifth session held on September 20, 2020, Chinese President Xi Jinping pledged that China would reach peak carbon emissions before 2030 and achieve carbon neutrality by 2060. This is seen as a significant step in the global efforts to fight climate change, and the goal has swept through China. Carbon peaking and carbon neutralization have become buzzwords across government, academia and the business world.

Potential implications of the EU Carbon Border Adjustment Mechanism

From 2023 onward, the European Union’s (EU’s) Carbon Border Adjustment Mechanism (CBAM) will require importers to declare the embedded carbon emissions of electricity, iron, steel, aluminum, cement and fertilizers. The CBAM will ultimately transition into a carbon import tax, with the goal of resolving carbon leakages in the EU’s emission trading system (ETS).

Taking Stock of China and the Geopolitics of Energy

The Oxford Institute for Energy Studies

Systematically Mapping Innovations in Electricity Using Startups: A Comprehensive Database Analysis

Science Direct

New Oxford Energy Forum – The Evolution of Carbon Markets and their Role in Climate Mitigation and Sustainable Development – Issue 132

The Oxford Institute for Energy Studies

China’s Belt and Road initiative: Changing Investment Priorities in Pursuit of Energy Security and Carbon Neutrality

Oxford Institute for Energy Studies

Achieving growth in Saudi Arabia and China through joint leadership on industrial energy productivity

IPEEC Bulletin

China’s Municipal Solid Waste (MSW) Administration Structure and the Development of Cement and MSW Co-processing (in Chinese)

China Cement

Integrate the Energy Efficiency Target with Climate Actions (Chinese)

Energy Policy Study

Climate Solutions-WWF’s Climate Vision for 2050

the Practice of Clean Development Mechanism (CDM) Project Development in Guangdong Honghaiwan Wind Farm (in Chinese)

China Electric Power

Accelerating the Just Energy Transition Through Enhanced and Integrated Critical Minerals Supply Chains

T20

Reframing of Global Strategies and Regional Cooperation Pathways for an Inclusive Net-Zero Strategy in the Energy Transition Framework

Bridging the Gaps and Mitigating the Risks: Tackling the Challenges of Sustainable Crossborder Energy Infrastructure Finance

T20

Fit-For-Purpose Energy Transition Strategies: Case Studies from G20 Members

T20