Revealed: Saudi Arabia’s grand plan to ‘hook’ poor countries on oil

THE GUARDIAN

Saudi Arabia is driving a huge global investment plan to create demand for its oil and gas in developing countries, an undercover investigation has revealed. Critics said the plan was designed to get countries “hooked on its harmful products”.

Little was known about the oil demand sustainability programme (ODSP) but the investigation obtained detailed information on plans to drive up the use of fossil fuel-powered cars, buses and planes in Africa and elsewhere, as rich countries increasingly switch to clean energy.

The ODSP plans to accelerate the development of supersonic air travel, which it notes uses three times more jet fuel than conventional planes, and partner with a carmaker to mass produce a cheap combustion engine vehicle. Further plans promote power ships, which use polluting heavy fuel oil or gas to provide electricity to coastal communities.

The ODSP is overseen by Saudi Arabia’s de facto ruler, the crown prince Mohammed bin Salman, and involves its biggest organisations, such as the $700bn Public Investment Fund, the world’s largest oil company, Aramco, the petrochemicals firm Sabic, and the government’s most important ministries.

In publicly available information, the programme is largely presented as “removing barriers” to energy and transport in poorer countries and “increasing sustainability”, for example by providing gas cooking stoves to replace wood burning.

However, all the planned projects revealed in the investigation by the Centre for Climate Reporting and Channel 4 News involve increasing the use of oil and gas. An official said this was “one of the main objectives”.

The head of the World Bank said recently that rich countries and companies needed to help developing countries leapfrog over the fossil-fuelled economic growth of the past and roll out renewable energy. If they did not, Ajay Banga said, there was no hope of ending carbon emissions by 2050, as the world’s scientists had repeatedly made clear was necessary to avoid climate catastrophe.

Saudi Arabia has said it is committed to the Paris agreement’s climate goals to restrict global heating to well below 2C while aiming for a 1.5C rise at most. To achieve this, fossil fuel emission must fall rapidly and most oil and gas reserves must be kept in the ground, meaning climate policies, such as support for electric cars, pose a significant threat to the oil-rich state’s revenues.

A significant issue at the UN’s Cop28 climate summit, which will begin on Thursday, is whether countries can deliver a pledge to phase down – or phase out – fossil fuels. This year the climate crisis has smashed temperature records and supercharged extreme weather has taken lives and livelihoods around the world.

Mohamed Adow, the director of the thinktank Power Shift Africa, said: “The Saudi government is like a drug dealer trying to get Africa hooked on its harmful product.

“The rest of the world is weaning itself off dirty and polluting fossil fuels and Saudi Arabia is getting desperate for more customers and is turning its sights on Africa. It’s repulsive.

“Africa cannot catch up with the rest of the world by trudging along in the footsteps of the polluting nations. It would mean we miss out on the benefits of modern energy solutions that Africa can take advantage of due to its massive renewable energy potential. We have the latecomer advantage, which means we can leapfrog to a genuine energy transition.”

António Guterres, the UN secretary general, said in 2021: “We need to see adequate international support so African and other developing countries’ economies can leapfrog polluting development and transition to a clean, sustainable energy pathway.”

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