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Minister Abdulrahman AlFadley,
Ladies and Gentlemen,
It is my great pleasure and honour to welcome everyone to IFAT Saudi Arabia together with you, esteemed minister For 60 years now, IFAT has been the leading trade fair for international environmental technology. It has played a key role in promoting environmental technologies worldwide and stimulating investment and innovation.
One of the greatest challenges of our time is preserving the natural foundations of life on Earth. The Seventh Global Economic Outlook (GEO), published in December, highlighted the urgent need to combat climate change, biodiversity loss and pollution. This is the only way to protect the foundations of our economy.
We must conserve raw materials and reuse them wherever possible. This is the very definition of circular economy, and it also contributes to mitigating climate change. Investments in transforming our economies and energy systems also create added value locally. And they give rise to new markets and opportunities for growth. Circular economy is a policy that increases a country’s appeal as a place to do business and at the same time promotes its capacity for innovation and boosts its competitiveness. I am pleased that Saudi Arabia is investing in circular economy on a large scale to drive forward the transition using the latest technologies. The Vision 2030 Strategy and the Saudi Green Initiative form an impressive framework for achieving these goals. Germany and Saudi Arabia are united in this vision. This is also reflected in the joint kick-off of IFAT here in Riyadh today.
The global challenges facing us are immense. All around us, political realities are changing and old partnerships have become unstable. I saw this for myself again just last week at the World Economic Forum in Davos. Circular economy will become even more important. It makes us less dependent on raw material imports and more resilient and competitive. And that is exactly what we need because the pressure on supply chains has never been greater. That is why Germany is staying on course: we continue to be a leader in circular economy in the EU and globally.
We began transforming our waste management sector into a circular economy around 40 years ago. We were one of the first countries in Europe to do so. We now have state-of-the-art recycling facilities. We are sometimes teased as the world champions of waste separation and sorting. But this is how we recover valuable raw materials and return them to the economic cycle.
In Germany, some 300,000 people work in municipal and private recycling companies. They generate turnover of around 105 billion euros. The industry has developed very well and has made a key contribution to fighting climate change: Germany’s waste management sector has reduced its greenhouse gas emissions by 86 percent since 1990.
But we cannot stop at waste management. We can achieve even more if we look at the entire product life cycle. According to estimates by the United Nations International Resource Panel, around 50 percent of global greenhouse gas emissions come from the extraction and processing of fossil fuels, biomass, ores and minerals. The only logical consequence is to reduce the consumption of primary raw materials.
Many raw materials are already in the economic cycle. Reuse or recycling whenever possible conserves natural resources, protects the environment and lowers our dependence on imports. That is the guiding principle of circular economy.
Circular economy begins even before a product is made. It includes the extraction of raw materials. And product design. And planning. Depending on which materials are used and how they are integrated, they can be recovered more easily. This applies to rare earths from mobile phones as well as cotton fibres.
For these reasons, we drafted a National Circular Economy Strategy in Germany. In February, we will adopt an action plan in the Cabinet that outlines concrete measures. We aim to implement the action plan by the end of 2027. The federal budget has allocated 260 million euros for this purpose. This includes funding for a programme to support circular production processes.
One of our most important resources is water – as you know here in Saudi Arabia. Our water management sector uses powerful technology – as can be seen here at IFAT. But now we need to make this sector sustainable and fit for the future. This is why we drafted a National Water Strategy with specific measures. We want to increase, for example, the reuse of water. This involves the use of innovative technologies such as nutrient recycling and desalination. This improves groundwater management and gives rise to new industrial models.
The measures also include stepping up international dialogue and cooperation. After all, the water cycle extends from the local to the global level. Let us work together on water issues at this year’s United Nations Water Conference.
Saudi Arabia has assumed a leadership role by hosting the first IFAT in the Arab world. And with good reason: the green tech industry – which includes the circular economy – is booming.
According to a study by the World Economic Forum, the green economy was one of the world’s fastest-growing sectors in 2024, with turnover of over five trillion US dollars. And the growth potential of green markets is enormous. This study predicts that turnover could exceed seven trillion US dollars by 2030.
Here at IFAT, the focus is on the best ideas and solutions for this market. This is environmental and climate protection in practice. It is how we can secure the foundations of our lives and economies for the future. Focusing on climate action is smart. It works and will pay off. Everyone here at the trade fair is our partner in these efforts. Thank you very much.
I am interested to hear your ideas on circular economy and water management here today. I look forward to further discussions and wish you a successful trade fair.
Thank you.