TODAY: Veolia-led consortium reaches financial close on UAE hazardous industrial waste treatment plants
Good morning, ladies and gents. We’re rolling into the weekend with a packed issue full of climate updates from all over the region. Let’s dive right in.
THE BIG CLIMATE STORY- A consortium comprising French waste and water management company Veolia, Abu Dhabi sovereign wealth fund ADQ, and Saudi investment powerhorse Vision Invest has reached financial close for the acquisition of two hazardous industrial waste treatments plants in the UAE.
^^ We have the details on this story and much more in the news well, below.
THE BIG CLIMATE STORY OUTSIDE THE REGION- Pakistan, India brace for Biparjoy cyclone: Roads along areas on India’s western coast are forecast to be flooded, with damage expected for houses and crops when the “extremely severe” Biparjoy cyclone hits later today, the Indian Meteorological Department (IMD) said yesterday. The storm is currently situated in the Arabian Sea approximately 280 km from Gujarat’s Jakhau Port and 340 km away from Pakistan’s Karachi, IMD said. Gujarat has already been seeing an increased intensity of rainfall and wind speed, with heavy rainfall expected in some areas today, according to an IMD official. “The cyclone would create tidal waves of 2 to 3 meters and at the same there would be heavy rainfall. This will cause flooding in low-lying areas,” the official said.
While currently not under immediate threat, emergency measures have been taken in the 20 mn strong Karachi to face winds and rain accompanying the cyclone, Pakistan’s Climate Change Minister Sherry Rehman said. Concerns over Biparjoy’s repercussions come as tens of thousands residing in coastal areas and high risk districts in the two countries have been evacuated in the past days. This year’s first severe cyclone for the two countries comes as the region continues to see climate-driven extreme weather conditions.
The story grabbed headlines in the international press: Reuters | Bloomberg | The Associated Press | CNN | The Washington Post | BBC | France 24 | The Independent
ICYMI- Enterprise Logistics took a deep dive into the growth of sustainable aviation fuels in the aviation sector, the promise these alternative fuels hold, and what needs to be done to accelerate their adoption.
The Enterprise Finance Forum is our flagship gathering — the one so many of you have been waiting for. The two-day event takes place this September and will be the latest in our must-attend series of invitation-only, C-suite-level gatherings. Stay tuned for more information on the location.
TAP OR CLICK HERE if you want to express interest in attending. We’ll be sending out the first batch of invitations just after the 30 June holiday.
Do you want to become a commercial partner? Email mtaalab@enterpriseadvisory.com.
STAY TUNED for more detail about our exciting agenda in the weeks to come.
ENTERPRISE IS LOOKING FOR SMART, TALENTED PEOPLE of all backgrounds to help us build some very cool new things. Enterprise — the essential morning read on all the important news shaping business and the economy in Egypt and the region — is looking for writers, reporters and editors to help us build out new publications. Today, we run four daily Egypt and MENA-focused publications, five weekly industry verticals, and a weekend lifestyle edition designed to make our readers feel just a bit smarter.
We have tons more in the pipeline — come help us build new publications. We offer the chance to work in a fast-paced newsroom on a broad range of topics and in a variety of formats. Our goal is simple: To create value for our growing community of >250k daily readers by telling stories that matter.
Journalists looking to explore business, finance and economic stories are welcome. So are recent journalism school graduates.
That said, we're looking for gifted story-tellers from all walks of life and across all professions, as long as they show a keen interest in learning to write about the stories, topics, businesses, and figures moving markets. Egyptian and foreign nationals alike are welcome to apply. So are job-switchers: If you’re an equities analyst tired of the rat race, we’re a great place to come work.
NEVER WORKED IN A NEWSROOM BEFORE? We have the Enterprise Business Writing Development Program. Whether you are a recent graduate, an industry vet, or looking to switch careers, the Enterprise Business Writing Development Program will give you the tools you need to tell the most important stories to our audience of C-suite officials, government ministers, diplomats, financiers, investors and entrepreneurs.
During the program you will learn:
- The key news stories and trends shaping business and the economy in Egypt and the region, across various sectors;
- Business and finance for non-finance people: Whether it's industry jargon or key concepts or simply how to read a balance sheet;
- How to construct an Enterprise story: From idea formulation down to the structure, style and tone of writing;
- How to develop sources that will give you the key insights needed to tell a complete story;
- How to communicate these stories with the confidence and language of an insider.
Not an internship program — a career: The three-month program will see full-time, paid participants take part in workshops and lectures from veteran business journalists, while also working on and filing stories that will run on any of our publications. Those who have successfully completed the program, will then be given long-term job offers.
Apply directly to jobs@enterprisemea.com and mention “writing development program” in your subject line.
SOUNDBITE OF THE WEEK- “If we do not adopt the agenda [during the conference], all the work that we are doing goes to waste,” UN Subsidiary Body for Implementation Chair Nabeel Munir said during an open session of the Bonn Climate Change Conference. Munir pleaded for heads of departments present at the event to not let the hours of negotiations go to waste, telling the audience to “wake up … what is happening around you is unbelievable. I come from a country where it happened last year. 33 mn people impacted. A third of [Pakistan] underwater. And I go back to tell my people that I have been fighting for an agenda for two or three weeks?” Munir asked.
Essential preparations for COP28: Although months of discussions have been taking place since COP27 in Egypt, no agreement has been reached on adopting the agendas proposed by the COP permanent subsidiary bodies for the Bonn conference. While the non-adoption of an agenda is “not uncommon in a party driven process,” making as much progress as possible during Bonn is crucial, since the conference will set the technical groundwork for the political decisions required at COP28, said Executive Secretary of the UN Framework Convention on Climate Change Simon Stiell. The conference is set to close today with no agenda in sight as we publish this morning’s edition.
WATCH THIS SPACE #1- Jordan is drafting a national strategy for hydrogen: Jordan’s Energy Ministry is currently working on developing a hydrogen strategy in a bid to turn the kingdom into a competitive hub for low-carbon hydrogen production, The Jordan Times reports. “The strategy will lay out a comprehensive regulatory framework that encompasses the entire hydrogen value chain, from production and supply to infrastructure development,” Director of Awraq Organization for Environmental Development Zeina Hamdan said. The strategy would also pave the way to attract investments for sustainable growth in the sector, Hamdan added. The ministry is currently holding workshops where the outcomes of the discussions will be used as the foundation for the hydrogen framework.
REMEMBER- Jordan is joining a list of countries in the region that have been working towards launching their own national hydrogen strategies. To date, Oman is the only country to have released its strategy, while Morocco and the UAE have released a hydrogen roadmap. In 2022, Saudi Arabia was developing a national hydrogen strategy, outlining its production, export and domestic uses, and Egypt is expected to announce its hydrogen strategy soon. As of March, a total of 68 low-carbon hydrogen preliminary agreements have been signed, but are now awaiting the launch of the strategies to secure financing and move forward with the plans.
WATCH THIS SPACE #2- Morocco is planning to produce 10.5 GW of clean energy by 2027, the country’s Director of Renewable Energies Mohamed Hamid told Asharq Business. The country — which invests some MAD 10 bn (c. USD 991 mn) annually in renewables projects — has a current generation capacity of 4 GW and wants to have renewables account for 50% of its energy mix by 2030, Hamid added.
WATCH THIS SPACE #3- EU divided on ammonia opt-out in renewable energy law: EU countries are divided on whether they will add an escape clause to its landmark renewable energy law that would allow nuclear power to be used in ammonia production, diplomats told Reuters. The move comes after a group of nations, led by France, demanded a more agreeable position for zero-carbon nuclear energy and an opt-out for ammonia plants not capable of making the switch from gas. The bloc’s ambassadors discussed a proposal that would provide exemptions from some ammonia plants from the targets, giving them the green light to switch to fuels made using nuclear energy instead, the sources told Reuters. The floated amendments have sparked a dispute between France and Germany, with Germany opposing the changes, according to Bloomberg. Countries will meet again tomorrow to consider the proposal, yet some have already voiced concerns about amending the text of the renewable energy law, which was agreed upon by the EU countries and lawmakers this year and was supposed to be final.
Is it likely to pass with a loophole? The EU Parliament’s lead negotiator Markus Pierper said lawmakers did not want to reopen the landmark agreement, which means the escape clause may not pass even if countries voiced their support, according to Reuters.
WATCH THIS SPACE #4- EU deforestation law risks shareholder exit: Shareholders may pull their money from firms that are likely to be impacted by the EU’s new law that bars consumer goods from the EU market if they are linked to deforestation, Reuters reports. Lawmakers expect the law to be implemented by the end of 2024 for “big operators.” The law will also affect other sectors that import goods associated with deforestation — including commodities houses and industrial companies. EU consumption represents some 10% of global deforestation, Reuters said, citing the European Parliament. Some of the companies expected to be impacted by the new law include consumer goods giants Nestle, Unilever, P&G, and Schroders.
REMEMBER- In December, the European Commission sealed a provisional agreement banning the import and sale of products that come from deforested lands including coffee, beef, palm oil, timber, cocoa, rubber, charcoal, and soy and their derivatives. “Companies must prove their supply chains aren’t contributing to the destruction of forests or be fined up to 4% of their turnover in an EU member state,” Reuters explains.
WATCH THIS SPACE #5- Shell plans to ramp up investments in low-carbon solutions: Oil giant Shell said it plans to invest USD 10-15 bn until 2025 to support the development of low-carbon energy solutions, according to a statement. These solutions include biofuels, hydrogen, electric vehicle charging, and carbon capture storage. “We need to continue to create profitable business models that can be scaled at pace to truly impact the decarbonization of the global energy system. We will invest in the models that work — those with the highest returns that play to our strengths,” Shell CEO Wael Sawan said. The company said it is committed to achieving near-zero methane emissions by 2030 and ending routine flaring from its upstream operations by 2025.
Oil production isn’t being reduced though: Shell has shelved plans to slash oil production each year, saying it would keep oil output steady until 2030, with plans to extend its advantaged position upstream to achieve cashflow longevity by stabilizing liquids production to 2030, the statement notes. The backtracking comes a few years after Shell said it would slash oil production by 1-2% every year.
WATCH THIS SPACE #6- Renewables capacity must grow five times faster to avert a climate crisis, according to a study (pdf) by think tank Climate Analytics revealed. Global wind and solar capacity needs to be scaled up five times faster by 2030, with new installations of up to at least 1.5 TW needed annually, the study says. Fossil fuel production will also need to be cut by 6% per year to help stay within the 1.5°C global warming limit and slash reliance on carbon dioxide removal, it said. Renewable energy’s share in electricity generation should surge to at least 70% by 2030, up from the current 30%, to “limit warming to 1.5°C with no or limited overshoot.” The study said that the 6% annual target for global fossil fuel reduction would help reduce fossil fuel use by around 40% over the decade.
|
***
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 by 5am 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.
EXPLORE MORE OF ENTERPRISE ON THE WEB — tap or click here to read EnterpriseAM, EnterprisePM, and The Weekend Edition on our powerful new website packed with reader-friendly features.
Subscribe to Enterprise Climate here or reach out to us on climate@enterprisemea.com with comments, suggestions and story tips.
***
CIRCLE YOUR CALENDAR-
Ireland will host the European Climate Change Adaptation Conference next Monday, 19 June to Wednesday, 21 June in Dublin. During the two-day conference, Europe’s leading climate researchers will present the latest climate action tools, decision-support platforms, and prototype climate adaptation services to 500 attendees. The audience includes adaptation experts, policy-makers, local authorities, private sector companies, investors, NGOs, and citizen and youth organizations.
France will host The Summit for a New Global Financial Pact on Thursday, 22 June to Friday, 23 June in Paris. The two-day summit will bring together heads of states and heads of multilateral development banks, international organizations, the private sector and international NGOs to shape a new finance “toolbox” and “pave the way towards a more balanced financial partnership between the north and south.” It will also see new agreements in a bid to relieve debt distress and allow countries to access additional financing to invest in sustainable development and slash emissions.
Thailand will host the second workshop on addressing loss and damage from 15-16 July in Bangkok. The workshop will see discussions on pathways to increasing funding for climate-induced loss and damage. The workshop is being held in preparation for the third meeting of the COP27 Transitional Committee in August. The committee is tasked with operationalizing the Loss and Damage Fund, to be approved during the fourth transitional meeting in October.
Check out our full calendar on the web for a comprehensive listing of upcoming news events and news triggers.