Back to the complete issue
Monday, 19 September 2022

TODAY: Mahmoud Mohieldin talks to Enterprise Climate + Saudi wants long-term green hydrogen contracts. ALSO- 90% of S&P companies will lose a facility in 2050 and BUE hosts mock COP27

Good morning, wonderful people and welcome to apacked issue, which we’re editing this morning from Dubai. We recently had a sobering conversation on the state of our climate and possible solutions to an intensifying global crisis with none other than…

THE BIG CLIMATE STORY- Who better to speak to about the climate crisis than Mahmoud Mohieldin? The UN high-level climate champion for Egypt left nothing on the table during our talk. We covered everything from responsibility for the climate disaster, why coping with it means addressing sustainable development, and how to fund what comes next. We also dove deep into where the role of the private sector ends and the state’s begins, what to expect from COP27, how he landed the role of climate czar, and how only a holistic to climate is the best way forward.

Don’t miss part one of our two-part interview in today’s Newsmakers, below. We’ll have part two tomorrow.

CLIMATE DIPLOMACY- KSA wants long-term contracts from the EU for clean energy exports: Saudi Arabia wants the European Union (EU) to sign long-term contracts for renewable energy investments, including for green hydrogen exports, Arab News quotes European Council President Charles Michel as saying. “What they want to know is if we are ready to accept long-term contracts,” Michel said. Michel, who’s in MEN drum up more energy exports, met with Saudi Crown Prince Mohammed bin Salman and other KSA officials last week. He also discussed investment in renewable energy with UAE President Mohamed bin Zayed, earlier this month.

This comes as the EU is looking to increase its energy supplies from MENA as fallout from the Russia-Ukraine war raises prices in Europe. Michel is also discussing increasing energy supply from Algeria to Spain, upgrading gas links between Algeria and Italy, as well as rerouting Qatari LNG supplies bound for Asia to Europe instead, he said, according to Reuters.

SMART POLICY- MENA has a once-in-a-generation opportunity to lock in its position in Europe’s energy mix, including sales of renewables, natural gas, green hydrogen, and electricity. KSA is right to drive a hard bargain — everyone else in the region needs to be doing the same.

WATCH THIS SPACE- Saudi Arabia turns to AI for climate solutions: Saudi’s Environment, Water and Agriculture Ministry signed several MoUs that promote the use of AI in making the food and agriculture industries more efficient. At last week’s Global AI Summit, it signed an agreement with Signify (previously Philips Lighting) to develop energy-efficient lighting solutions for AI-enabled “smart farms” as well as with Tata Consulting Services to use AI to make food production more efficient and less wasteful. Google also got in on the action with an agreement on use of its Google Cloud service.


THE BIG CLIMATE STORY OUTSIDE THE REGION- More from the Department of Duh: Climate change could have increased Pakistan’s rainfall intensity by some 50-75% during monsoon season, according to a study published on Thursday by scientists affiliated with global research movement World Weather Attribution. Coming on the heels of flooding that has devastated the country, the news was got attention from major global news outlets: Financial Times | Guardian | Washington Post | New York Times.

And what happens if you throw La Nina into the mix? Weather disaster damages costing a possible USD 1 tn by the end of 2023. Climate change is heightening the impact of La Nina, an atmospheric phenomenon that’s been spurring the extreme weather events of the last two years, Bloomberg reports. Now we’re on track to see a third year of La Nina — something that’s only happened twice since 1950. And with this will come more weather disasters, costing an estimated USD 1 tn.

And if you think your business won’t be hit, think again: By 2050, 90% of the world’s biggest companies will see at least one of their assets exposed to climate threats, Bloomberg and Reuters report, citing S&P Global data. More than a third of those companies will see at least one asset lose 20% or more of its value as temperatures rise, according to this newly published data.


MOVES- Shell has appointed Wael Sawan (LinkedIn) as its new CEO, effective 1 January 2023, the company announced in a statement on Thursday. Current CEO Ben van Beurden will continue working as advisor to Shell’s board of directors until 30 June 2023. Sawan was appointed head of Shell’s integrated gas and renewables business last year. The Lebanese-Canadian national ran Shell’s LNG projects from 2012-2015.

THE BIG QUESTION- Could Sawan’s appointment mark a substantial shift towards renewable for the oil major? Opinions differ. A Bernstein analyst quoted by the FT thinks Sawan’s appointment could “bring new energy” to Shell’s decarbonization strategy, allowing the company to assume a leading role in the energy transition. Others disagree: Sawan’s appointment “is expected to have limited impact on Shell’s strategy,” analysts told Reuters. “The shift is likely to be more of a continuation than revolution of the strategy put in place by van Beurden,” analysts from RBC Capital told the publication. Investors, meanwhile, will be “looking for assurances” on renewable strategy, as well as dividend security, one analyst noted.

*** YOU’RE READING ENTERPRISE CLIMATE, the essential regional publication for senior execs who care about the world’s most important industry. Enterprise Climate covers everything from finance and tech to regulation, products and policy across the Middle East and North Africa. In a nod to the growing geographical ambitions of companies in our corner of the world, we also include an overview of the big trends and data points in nearby countries, including Africa and southern Europe.

Enterprise Climate is published at 4am CLT / 5am Riyadh / 6am UAE Monday through Thursday by Enterprise, the folks who bring you Enterprise Egypt, your essential 6am and 3pm read on business, finance, policy and economy in Egypt and emerging markets.

Subscribe to Enterprise Climate here or reach out to us on climate@enterprisemea.com with comments, suggestions and story tips.

enterprise

THE COUNTDOWN TO COP- Civil society groups are calling for a climate day of action on 12 November, right in the middle of COP27, according to The Guardian. The COP27 Coalition — a group of environmental activists — said they will stage demonstrations to spur climate-focused grassroots movements, and will call for global protests to put pressure on the 196 nations expected to gather at COP27, the newswire notes. The coalition wants to use the summit “to demand climate justice and solidarity for Africa and the global south,” a member of the coalition told the news outlet. “To stop the climate crisis and bring energy justice to the world, we need a rapid phase-out of fossil fuels.” The focus will also be on demanding grants instead of loans for Africa’s decarbonization.

HAPPENING TODAY-

The British University in Egypt’s model COP27, which kicked off yesterday, will run through Tuesday with 170 participants from 52 different countries. The mock summit is organized in partnership with the UNDP and under the auspices of the country’s Youth Ministry, a ministry statement told us last week.

PSA #1- The EU-funded ER2FOOD initiative will provide grants and mentorship to Egyptian startups working on energy and resource efficiency in bakeries, according to a statement by the initiative. Grants of up to EUR 8.5k will be given to companies tackling energy, water consumption and waste reduction, as well as those developing resource-efficient products and recipes. Companies can apply to the nine-month Innovation Support Program until 30 September here.

PSA #2- Nominations for the “Africa Grows Green Awards” are now open through 2 October. The initiative, launched by Egyptian NGO Istidama, aims to celebrate stakeholders involved in climate change action among COMESA member states. The awards also seek to develop climate entrepreneurship by connecting companies with VCs. For more information and to apply, you can visit the initiative’s website.

CIRCLE YOUR CALENDAR-

Our friends at HSBC are hosting an energy transition webinar series next Tuesday-Thursday (27-29 September). The series will look at the “latest climate analysis in relation to the global energy market and transition to net zero” in six different sessions covering energy security, what is required to ensure the success of COP27, financing and investment needs for the energy transition, and the scaling up of renewables in the region, among other topics. You can register for the series here.

The Egyptian Center for Economic Studies is hosting a webinar on adaptation readiness tomorrow in partnership with Egyptian private-sector bank CIB. The webinar will discuss adaptation readiness plans and the challenges that Africa faces on its road to climate change adaptation. You can register for the webinar here.

The World Cement Association’s (WCA)’s global conference will take place from 25-28 September at Emirates Towers in Dubai, UAE. The event will be attended by COP26 UN Climate Champion Nigel Topping, among other attendees, panelists,and keynote speakers. You can register for the event here.

The Wetex and Dubai solar show will run 27-29 September at the Dubai World Trade Center.

Dubai will host the World Green Economy Summit on 28-29 September. The summit wants to provide a platform to build consensus around the potential of technologies, policies and youth that could drive the green economy transformation.

Fitch Solutions hosting a webinar on Saudi Arabia’s energy transformation next Thursday, 29 September at 12:00pm KSA. You can register here.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

Enterprise Climate is available without charge thanks to the generous support of HSBC (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; and Infinity Power (tax ID: 305-170-682), the leading generator and distributor of renewable energy in Africa and the Middle East. Enterprise Climate is delivered Mon-Thurs before 4 am UAE time. Were you forwarded this copy? Sign up for your own delivery at climate.enterprise.press. Contact us on climate@enterprisemea.com.