TODAY: China reveals vague methane emission reduction goals + Acwa and Masdar are developing 500 MW of renewables in Azerbaijan
Good morning, ladies and gentlemen. We bring you another brisk but meaty issue this morning as we slide towards the weekend in our neck of the woods.
THE BIG CLIMATE STORY- Saudi's Acwa Power has signed an MoU with the UAE's Masdar and State Oil Company of Azerbaijan Republic (Socar) to develop 500 MW of renewable energy projects in Azerbaijan.
OVER IN COPLAND- China (kind of) reveals methane emission reduction goals ahead of COP: China — the world’s largest producer of methane — has pledged to better track and reduce harmful emissions from the potent global warming gas, setting the tone for what’s to come at COP, the Financial Times reported, citing a government document. The statement failed to specify definitive targets or timelines for the planned emissions cuts but said it will cover all sectors from energy to agriculture and waste through to 2030. The move was “an opening play, rather than a final offer,” a climate policy diplomat told FT, adding that it lays the groundwork for further discussions ahead of the UN climate summit launching later this month.
China was stubborn at first: China is one of few countries that refused to join the global methane pact signed by more than 150 countries two years ago at the Glasgow climate summit.
WATCH THIS SPACE #1- ADIB takes its first green sukuk to market: Abu Dhabi Islamic Bank (ADIB) started selling its five-year benchmark-sized USD-denominated first green sukuk at 145 basis points over US Treasuries, Reuters reports, citing an arranging bank document it has seen. The lender is looking to raise USD 500 mn from the debt sale. The bank announced on Tuesday that the issuing should follow investor meetings taking place.
We have an investment cost for the recently announced 1.1 GW solar project in KSA: The consortium selected to develop the 1.1 GW Al Henakiyah solar PV project under a build-own-operate agreement is investing USD 1 bn to build the plant, according to a company statement. The consortium is made up of UAE’s Masdar, France’s EDF Renewables, and Saudi Arabia’s Nesma Company, who together signed a 25-year power purchase agreement with the Saudi Power Procurement Company to sell solar energy at a price of USD 1.68 per KWh.
WATCH THIS SPACE #2- Egypt’s GASCO is ready to jump on the green hydrogen train: The Egyptian Natural Gas Company (GASCO) has approved an amendment in the company’s bylaws to allow the firm to start engaging in hydrogen and carbon capture-related projects, Egypt’s Oil Ministry said in a statement. The amendment expands GASCO’s activities to include “establishing, manufacturing, operating, maintaining, managing, and owning” projects that are necessary for the “production, storage, transportation, distribution, selling, purchasing, exporting, and importing hydrogen.” It also allows the company to engage in “separating and transporting carbon dioxide.”
REMEMBER- Natural gas companies will play an important role in building green hydrogen infrastructure as researchers are working on technologies to repurpose gas pipelines to transport hydrogen instead. Tunisia, Algeria, and Morocco are currently exploring potential agreements to eventually transform existing natural gas pipelines into (green) hydrogen pipelines.
WATCH THIS SPACE #3- Egypt takes its EV production plans digital: Egypt’s government launched an electronic platform for the Egyptian Automotive Industry Development Program (AIDP), which encourages EV localization with the aim of enhancing the country’s existing assembly and manufacturing capabilities, and of encouraging new investment into the sector, according to a cabinet statement. The government finalized policy amendments to allow financial incentives to replace, convert, and finance the purchase of vehicles powered by clean energy. It's also ramping up a list of incentives for the production of EVs to attract manufacturers and reduce the use of fossil fuel-powered cars to allow for more EVs.
THE DANGER ZONE #1- Petrostates’ plans for fossil fuel expansion will “blow the planet’s carbon budget twice over,” the Guardian reports, citing the UN’s Production Gap report (pdf). The energy plans of the fossil fuel producers contradicted their climate pledges, and would lead to de facto increase in coal production by 460%, gas production by 83%, and oil production by 29% more above what is allowed to keep temperatures below 1.5°C. The largest carbon emitters from planned fossil fuel production are India (coal), Saudi Arabia (oil) and Russia (coal, oil, and gas), while the UAE, US, and Canada are also planning to be major oil producers, the news outlet said.
THE DANGER ZONE #2- The hottest year on record? 2023 is “virtually certain” to be the warmest in 125k years, Reuters reports, the EU's Copernicus Climate Change Service (C3S). October’s 2019 record was broken by 0.4°C, after September 2023 also broke the temperature records by a large margin. The average surface air temperature globally in October was 1.7°C warmer than pre-industrial levels, the report adds. The heat results from greenhouse gas emissions from human activity along with weather patterns caused by El Nino. “Most El Nino years are now record-breakers because the extra global warmth of El Nino adds to the steady ramp of human-caused warming,” said University of Pennsylvania climate scientist Michael Mann.
THE DANGER ZONE #3- Tunisia’s agriculture sector will take a big hit as drought worsens: Agricultural production in Tunisia is predicted to drop by 29.1% to 33.1% by 2050 due to increased water shortages brought about by climate change, according to the World Bank’s Fall 2023 Economic Monitor of Tunisia (pdf). These losses would translate into a reduction in GDP by 4.1% to 4.6% by 2050, or 2% to 2.7% (USD 900 mn to USD 1.3 bn) by 2030. If today’s trajectory continues, the available water per person per year could fall by 66%, leaving a 28% supply gap by 2050. The impacts are already being felt and are shrinking the country’s growth, the report concludes.
Tunisia’s prized olive yields will be impacted the most: Tunisia’s valued olive yields — which accounted for a significant 40% of total agricultural exports in 2019 — could drop by as much as 69% by 2050.
HELP SUPPORT GAZANS-
Want to support relief efforts in Gaza, but don’t know how? We’ve got you. More than a mn people in Gaza have been thrown from their homes and every human being there lacks access to food, water, and fuel amid the most intense bombardment any population has endured this century. The charities we’re listing below are regional organizations working on Gaza relief that we think you can trust if you want to make a donation.
#1- Egyptian Red Crescent Society is one of the nation’s leading providers of humanitarian and emergency medical services. The Egypt Red Crescent accepts donations in EGP online and is on Fawry with the service code 99981. You can also donate to the organization through this Banque du Caire account: 49/403/30 (EGP) or 1065/601/30 (USD — code: BCAIEGCX030).
#2- The Emirates Red Crescent Authority has launched the Tarahum — For Gaza campaign and is accepting donations online via What’s App, SMS, Apple Pay, credit card, or bank transfer to ADIB (AE370500000000020000417).
#3- The King Salman Humanitarian Aid and Relief Center has launched the Sahem campaign accepting donations via their website, mobile apps on Apple Store and Google Play, or bank transfer to Al Rajhi Bank (SA5580000504608018899998).
#4- UNICEF has been on the ground in Gaza since the start of the crisis, providing urgent supplies and aid. You can donate to the agency directly in your local currency using your credit card here.
ALSO- The folks at Talabat are processing donations for a range of Gaza relief appeals by charities including the Egyptian Food Bank, Misr El Kheir and the Emirates Red Crescent Authority’s Tarahum campaign. You can make the donation via the Talabat app using your credit card.
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CIRCLE YOUR CALENDAR-
Turkey will host the GCC-Türkiye Economic Forum from Saturday 11 November to Monday, 13 November in Istanbul. The forum aims to bring together key ministers and state officials from the Gulf countries and Turkey to explore areas of potential investments and commercial ties and to establish a network for joint projects in the energy, defense, banking, retail, and transportation sectors. The event is organized by the Gulf Research Center and Turkey’s International Cooperation Platform.
The UAE will host the MENA Solar Conference from Wednesday, 15 November to Saturday, 18 November in Dubai. The event will focus on all things photovoltaic, with a full programme on PV materials and devices, future technologies, PV reliability, and forecasting for performance assessment. The conference will also touch on how developments in system operations, concentrated solar power, and grid integration are necessary for the green transition. This will be the first scientific and technical conference specializing in solar energy systems in the region.
The UAE will host the Aviation and Alternative Fuels conference from Monday, 20 November to Friday, 24 November in Dubai. The event will bring together senior government officials and international organizations to assess progress in the development and deployment of sustainable aviation fuels (SAFs) and lower-carbon aviation fuel (LCAF) measured according to the targets outlined in the 2050 Vision for SAF, agreed upon at the last Aviation and Alternative Fuels conference in 2017.
The UAE will host the Abu Dhabi Finance Week (ADFW) from Monday, 27 November to Thursday, 30 November in Abu Dhabi. The event will gather government officials, banks, financial institutions, and VCs to delve into today’s economic, technological, and sustainability conversations.
Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.