TODAY: Morocco’s OCP secures USB 100 mn green loan for greenifying fertilizer production + KSA’s SIRC launches JV for organic waste management
Good morning, ladies and gents. It’s a quiet morning on the climate news front, but there are a few stories emerging from the region worth noting.
THE BIG CLIMATE STORY- The International Finance Corporation will extend a USD 100 mn loan to Moroccan state-owned fertilizer and phosphate giant OCP Group to boost the company’s solar-powered fertilizer production operations.
^^ We have the details on this story and more in the news well, below.
THE BIG CLIMATE STORY OUTSIDE THE REGION- There’s no single climate story dominating headlines this morning, but World Bank chief Ajay Banga has called for a removal of some subsidies which cause harm to the environment, Reuters reports. He urged lowering the USD 1.25 tn poured annually on subsidies for agriculture, fuel and fisheries which would have USD 5 to USD 6 tn of environmental impact. "I'm not saying to get rid of all of those. I consider some of those subsidies mission-critical to the social contract with the government and its citizens. But I don't believe that USD 1.25 tn qualifies," he said on the sidelines of the annual meetings of the IMF and the World Bank in Morocco.
WATCH THIS SPACE #1- Egypt has agreed with the Democratic Republic of Congo to build up a 1 GW interconnection project linking Aswan to Inga, according to a document seen by Enterprise Climate. The planned project — which will have a voltage of 500 kV — is set to be built over three phases, with the first stage set for next year, the document showed. It is part of a USD 3 bn African Continental Master Plan (CMP) to create one grid for the continent.
And that’s not all: Egypt has reached an agreement with Eritrea to set up two solar plants at a total cost of USD 10.4 mn, the document showed. It did not provide details on the two facilities’ capacities or timelines.
IN OTHER EGYPT NEWS– Egypt’s state-owned El Nasr Automotive is currently in talks with three foreign firms and a local firm to manufacture a traditional vehicle and an electric vehicle in the coming period, Youm 7 reported, citing statements by El Nasr’s Chairman Khaled Shedid. The negotiations include Chinese Yunlong, which El Nasr is currently in talks with for the manufacture of three electric vehicles, Shedid said.
The country’s EV ambitions are high: While Egypt’s EV industry is still nascent, two auto firms and distributors — Misr Helwan Automotive and Abou Ghaly Motors — introduced EVs to the country’s car market this year. Egypt is supporting Abou Ghaly and other private sector players with incentives to get a homegrown EV industry off the ground, with the country’s environment minister expecting the first locally-assembled EVs to roll off production lines in 2024. India’s Hinduja Group is expected to sign a final agreement with Egypt to support local EV manufacturing in the country by the end of 4Q 2023, an informed source at Egypt’s Trade and Industry Ministry’s Trade Representation told Enterprise Climate in August. Earlier in May, Hinduja’s commercial vehicle maker Ashok Leyland expressed interest in cooperating with El Nasr to manufacture commercial EVs in Egypt.
WATCH THIS SPACE #2- Neom’s first wind turbines have arrived: The first batch of wind turbines have arrived in Neom’s port with dozens more expected by the year’s end, Neom Green Hydrogen Company CEO David Edmondson told AFP on Tuesday. Some 30 turbines are set to be delivered to KSA’s Neom by the end of the year along with the ambitious project’s first solar panels.
Looking ahead: The USD 8.4 bn green hydrogen plant at Neom is set to reach full capacity by the end of 2026, with all of its production set for export, he said. The plant, which achieved financial close earlier this year, will have a 1.2 mn ton annual production capacity once operational.
DATA POINT- Immediate methane emissions cuts would avert mns of premature deaths: Immediate methane cuts would prevent c. 1 mn premature deaths due to ozone exposure by 2050, the International Energy Agency (IEA) said in a report (pdf). The cuts would also prevent 90 mn tons of crop losses, c. 85 bn hours of labor lost due to extreme heat, and help generate c. USD 260 bn in direct economic benefits through 2050. Heavily polluting fossil fuel is likely to hold “the largest potential for rapid and low-cost reductions in methane emissions,” the report said. Over 80 mn tons of annual methane emissions from fossil fuels can be prevented by 2030 using existing technologies at a low or negative cost.
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CIRCLE YOUR CALENDAR-
The UAE will host the UNCTAD World Investment Forum from Monday, 16 October to Friday, 20 October in Abu Dhabi. This year’s theme focuses on sustainable investments, with a diverse range of climate financing sessions on promoting investments in the blue economy, agrifood systems, sustainable infrastructure, carbon markets, the circular economy, strategic minerals for decarbonization, and sustainable tourism. Some sessions will tackle reform of financial institutions needed to reach net zero, such as a session on integrating nature-related risk into capital markets and financing an equitable nature economy. Public sector investments and stock exchange action on climate disclosures will also be discussed.
Oman will host the Duqm Economic Forum from Monday, 16 October to Tuesday, 17 October in Duqm. The two-day event — organized by the Public Authority for Special Economic Zones and FreeZones — will showcase green investment windows and possible partnerships at the Special Economic Zone at Duqm.
Egypt will host the fourth meeting of the COP27 Transitional Committee from Tuesday, 17 October to Friday, 20 October in Aswan. The meeting aims to establish institutional arrangements, modalities, governance structures, and terms of reference for the landmark Loss and Damage Fund while expanding sources for climate funding under the program.
Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.