Good morning, friends. We’re rounding out the week with what feels like a calm day for the climate world, just in relative terms to the past several days.

THE BIG CLIMATE STORY- Egypt signed a framework agreement with C2X — which is owned by AP Moller Holding and AP Moller-Maersk — worth some USD 3 bn for the production of green methanol and its derivatives in the Suez Canal Economic Zone

HAPPENING TODAY- The Global Resilience Forum kicks off today in Dubai and wraps tomorrow, where senior officials will gather to address the evolving security landscape affected by disaster risks in preparation for COP28, Wam reports. The main pillars of the forum include risk governance, private sector cooperation, investment in urban solutions, and data-driven approaches to enhance cities' resilience.

THE BIG CLIMATE STORY OUTSIDE THE REGION- One step closer to new EU climate chiefs: The European Parliament’s environment committee approved yesterday new chiefs of the EU’s climate policy after additional pledges were made to coax lawmakers, Reuters reports. They approved former Dutch FM Wopke Hoekstra to be the bloc’s upcoming chief of climate change policy and Maros Sefcovic to be the proposed EU green policies chief. Both officials secured the approval from at least two-thirds of the committee, with the approval coming a day after they failed to secure the greenlight in a parliamentary hearing. Hoekstra made extra pledges to win over lawmakers, including disclosing how much of the bloc’s funds are poured into fossil fuel subsidies and to take an unyielding stance at COP28 on a fossil fuel phaseout. Sefcovic also promised new EU curbs on microplastic pollution and animal welfare rules this year. However, he did not reveal when Brussels would deliver such pledges.

What’s next: The two officials still require a formal greenlight from the majority of the full EU Parliament in a vote today that is likely to pass.

The lawmakers’ approval also got ink from: Bloomberg | The Financial Times | The Guardian

OVER IN COPLAND- Big Banks are making a larger showing at COP28 compared to last year as their role in climate finance gains urgency: Top brass from Standard Chartered Bank, Citigroup, and Barclays are planning to attend COP28 in the UAE after having been absent in Sharm El Sheikh’s COP27 last year, Bloomberg reported. “Banks need to channel four times as much capital into renewable energy as they do into fossil fuels by the end of the decade for the world to have a chance of achieving net-zero emissions by midcentury,” BloombergNEF estimates found according to the news outlet.

The higher turnout by Big Banks is partially because their regional offices are based in the UAE where COP28 will be hosted in a couple of months. A COP28 spokesperson said in an email that organizers are collaborating with GFANZ, the International Monetary Fund and the World Bank to “unlock the power of the capital markets and incentivize capital and finance at multiple levels.”

Last time banks were at COP, notable steps to facilitate green financing were initiated, but not for long: COP26 hosted in Scotland’s Glasgow saw the unveiling of the Glasgow Financial Alliance for Net Zero (GFANZ) — a collection of many of the world’s biggest lenders and asset managers committed to achieving net zero financed emissions by 2050. GFANZ — which counts JPMorgan Chase & Co. and BlackRock Inc. among its 650 members — was meant to represent a “wall of capital” to finance green solutions, Bloomberg writes, but a recent backlash against ESG investing in the US led to numerous insurance companies from the Net Zero Ins. Alliance — a GFANZ subgroup focused on cutting emissions from insurance underwriting portfolios — to withdraw completely.

REMEMBER- Methods to reduce loan risk premiums is the main focus of financing discussions at COP: At last year’s climate summit, one persistent topic of discussion was how international lenders can reduce the risk for private companies in financing green investments in developing economies, Bloomberg said. Premium added on loans due to risks — including country risk, exchange rate risk, and off-take risks — is one of the highest barriers to climate finance access as it adds a premium to the cost of capital and makes borrowing for renewable related projects more expensive.

SOUNDBITE OF THE WEEK– Global heat records reached “gobsmackingly bananas” levels in September 2023, surpassing the previous 2020 record by 0.5°C, Zeke Hausfather, a Berkeley Earth researcher, said on X. The month’s temperatures were around 1.7°C above pre-industrial levels, above the Paris Agreement target of 1.5°C, due in large part to fossil fuel emissions and El Niño, Bloomberg reports, citing data by Japan Meteorological Agency and the EU’s Copernicus Climate Change Service. This also follows the hottest summer on record, according to a NASA report. “Climate scientists are running out of superlatives to describe 2023,” Bloomberg quotes Hausfather as saying.

Renewables stocks take a big hit due to higher interest rates: The S&P Global Clean Energy Index, which comprises the top 100 renewable energy companies, dropped 20.2% in two months off the back of higher interest rates hitting the sector, the Financial Times reports. Higher global inflation and interest rates raised costs for green energy companies, which usually set long-term contracts that fix the price at which they will sell energy before projects are developed.

Renewables businesses are feeling the pain: Swedish wind turbine developer Vattenfall says its costs rose 40%, Reuters reported in June. NextEra Energy, a US-based wind and solar generator, announced it was cutting its three-year growth plans. “Tighter monetary policy and higher interest rates obviously affect the financing needed to grow distributions to shareholders at 12%,” NextEra CEO John Ketchum told the FT.

---

WATCH THIS SPACE- UAE to announce unified price for EV charging before year-end: “A unified price for charging electric cars will be announced at the state level before the end of this year,” Undersecretary for Energy and Petroleum Affairs under the UAE’s Energy and Infrastructure Ministry Sharif Al Olama told Emarat Al Youm. The ministry is currently collecting responses from the emirates of the country regarding the unified tariff, after which the price will be set, Al Olama added. The undersecretary made the statement on the sidelines of the Abu Dhabi International Petroleum Exhibition and Conference (Adipec) conference, which kicked off earlier this week and is scheduled to conclude today.

REMEMBER- Dubai aims to have 42k electric cars on its roads by 2030, and the UAE’s EV market is expected to grow at a CAGR of around 28.5% during the 2023-28 period, according to a recent market research report. Annual EV car sales in the Middle East, including the UAE, is currently at 3-4 mn units. In July, the Dubai Water and Electricity Authority (Dewa) joined the global EV-focused Charging Interface Initiative as a core member, enabling Dewa to establish EV industry standards for charging systems.

WATCH THIS SPACE #2- Jordan plans to update its 2030 renewable energy plans with more ambitious targets by the end of this year or early next year, Energy Minister Saleh Kharabesh said at the Adipec conference this week, according to Reuters. Renewables currently contribute around 27% of the country’s energy mix, while Jordan’s goal has been to reach a 30% contribution by 2030, although officials have previously signaled that it could hit a much higher target of up to 50%.

Get Enterprise Climate

***
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-

The Saudi Green Building Forum kicks off next week from Monday-Thursday, 9-12 October. The forum, hosted by the Saudi Municipal, Rural Affairs, and Housing Ministry, will focus on speeding up the construction industry's transition to carbon neutrality by promoting sustainable practices in energy, water use, and green cities.

MENA Climate Week is kicking off soon in KSA’s Riyadh Boulevard City: The UN-backed climate conference, hosted by Saudi’s energy ministry, will gather policy makers, the private sector and civil society organizations from across the MENA region to discuss climate barriers and solutions between 8-12 October. This is one of four region-specific climate weeks to take place after the UN’s global stocktake report and ahead of COP28 this December.

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