John Kerry and EBRD boss Odile Renaud-Basso arrive in Cairo for climate talks

Good morning, friends. We hope you’re ready for a very busy day — as the climate diplomacy is accelerating ahead of COP and industry events are really ramping up, suggesting a we’re all in the early days of a wild ride.

HAPPENING TODAY-

US climate envoy John Kerry (Twitter) is arriving in Egypt today for the Egypt-International Cooperation Forum (Egypt-ICF), which runs through Friday at Almasa Convention Center in the new administrative capital. The three-day event will bring together global policymakers, ministers, development partners and other participants ahead of COP27 to discuss climate action and green transition, food security, and others with a focus on Africa. Check the full agenda here (pdf).

Also attending the meeting is Odile Renaud-Basso, head of the European Bank for Reconstruction and Development (EBRD), who will meet with Egypt’s President Abdel Fattah El Sisi, Finance Minister Mohamed Maait and International Cooperation Minister Rania Al Mashat, according to an EBRD statement. Look for climate finance to be at the top the agenda for the meetings alongside the practicalities of COP27.

Sticking with Egypt, we have a symposium on water sustainable solutions, with day two of the two-day gathering taking place in Alexandria, today. The event is organized by the American University in Cairo (AUC), the United States Agency for International Development (USAID) and Alexandria University’s Water Symposium. The aim is to showcase findings and research output of scientists and engineers in water use efficiency, integrated water resources management, treated water and reuse, and non-conventional water resources and desalination.

The 2022 Euromoney Saudi Arabia Conference runs in Riyadh today. Besides discussing Saudi Arabia’s economy in the context of the global macro-outlook, it will also host a workshop on ESG and climate change.

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Climate change is threatening the future of Egypt’s dairy farms — here’s how. Hotter temperatures in Egypt are lowering dairy output of Egypt’s cows — likely as a result of dehydration and a decline in their immunity, farmers tell Enterprise. While declines in milk production aren’t unusual during the summer (with expected decreases of 10-20%), evidence suggests production dropped by more than half this summer. Making things worse: rising costs in animal feed.

^^ You can read the full story in yesterday’s Going Green — EnterpriseAM’s weekly dive into the green economy in Egypt.

PSA #1- You can now get certified in ESG investing from PwC and CFA: PricewaterhouseCoopers’ (PwC) Middle East launched an ESG investing certificate that it says is accredited by the Chartered Financial Analyst (CFA) Institute. The course covers environmental and social factors of ESG investment, ESG analysis, valuation and integration, and portfolio analytics. You can find out more here.

PSA #2- Today is the last day to submit proposals for green projects to Egypt’s Initiative for Smart Green Projects. The government program aims to build an investment map for green projects and companies in a bid to channel private investment to them. Companies looking to get on the map can apply here.

PSA #3- You have until 23 September to apply for the annual UNFCCC’s capacity building hub at COP27. You can apply here.

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THE BIG CLIMATE STORY OUTSIDE THE REGION-

Catastrophic floods in Pakistan continue to dominate global climate news, with outlets around the world covering the ongoing efforts to stem rising waters in the Indus River basin and counting the costs of the flooding. The UN has warned of further damage to flooding that has seen at least 1,343 people dead and around 33 mn impacted. Not to mention the over USD 10 bn in damage and the destruction of world heritage sites. Reuters | AP | Bloomberg.

The flooding is going to reshape the global agriculture market — and possibly make everything from wheat to cotton and rice more expensive, according to this widely shared thread from Nathan Carson, VP of operations at US fertilizer blender Chemical Dynamics. The floods are disproportionately hitting Pakistan’s main agricultural hubs. The country produces 5% of global cotton, 2.5% of the world’s wheat and 9% of rice exports. Flooding has hit during planting and harvest season.

So you can more upward pressure on global food prices, exacerbating the spike of resulting from the ongoing Russia-Ukraine war. That cooling off of prices we’ve seen recently? Don’t expect it to last.

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WORTH READING- Europe’s dependency on fossil fuels could get heavier: European governments are expected to spend at least EUR 50 bn this winter on developing new and expanding old fossil fuel infrastructure and supplies as a result of the Russia-Ukraine wat, Alice Hancock writes for the FT, citing data from energy think tank Ember Climate.

CIRCLE YOUR CALENDAR-

The UN Economic and Social Commission for Western Asia is hosting its Towards COP27: Arab regional forum on climate finance on 15 September in Beirut. The forum will explore the climate finance needs of Arab countries to ensure water, energy and food security, while showcasing projects that can accelerate climate action

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

Dubai will host 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.

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

In addition to pledges, you can expect scary data like this during COP27: The Middle East is warming twice as fast as global averages — and could rise as much as 5°C by the end of the century, Reuters reports, citing a study by the Max Planck Institute for Chemistry and the Climate and Atmosphere Research Center that will be unveiled during COP27. The surge in temperatures would lead to severe droughts that will visit widespread water and food scarcity in the region. The scenario could also see fresh underground water turn salty in areas like Egypt’s Nile Delta.

What does the study recommend? We can hazard a guess: Making good on the climate action targets set out in the 2015 Paris Climate Agreement could slow the projected annual spike in MENA temperatures to c. 2°C, according to the study.

Then again, G7 nations do have a tendency to treat Paris Climate Agreement targets like unwashed dishes in the sink on the help’s day off: Pledges to cut down greenhouse gas emissions in the world’s leading economies are not happening — and if they are, it’s not fast enough, CDP and global management consultancy Oliver Wyman told Reuters.

How far off are G7 corporate emissions from the 1.5°C target? A lot. Collectively, they’re headed on a 2.7°C warming trajectory.

Some G7 countries are faring better than others: Germany, Italy and the Netherlands are in the lead with their trajectory at the 2.2°C mark, followed by France (+2.3°C) and the UK (+2.6°C).

North America does not give a [redacted]: Canada (+3.1°C) and the US (+2.8°C) are considerably behind.

NOTHING OPENS WALLETS LIKE A SENSE OF GUILT-

Talk about a drop in the ocean: Four European countries announced USD 55 mn in new funding for Africa’s climate action projects, according to a statement by the Global Center on Adaptation (GCA). The UK contributed USD 23 mn, Norway USD 15 mn, France USD 10 mn and Denmark USD 7 mn to the GCA’s AAAP Upstream Facility during a summit on climate adaptation in Rotterdam on Sunday. The facility is a joint initiative between the GCA and the African Development Bank, which aims to mobilize USD 25 bn over five years to drive climate adaptation in Africa.

Hear, hear: This comes as African countries are calling on western nations to provide more funds for climate adaptation projects in Africa, Reuters writes. During the COP26 summit in Glasgow last year, developed countries had pledged to deliver USD 40 bn by 2025 to fund climate-adaptation projects in the continent.

Kizad, Nwtn sign lease agreement for EV assembly facility: Dubai-based green mobility company Nwtn Motors signed a lease agreement with industrial developer Khalifa Industrial Zone Abu Dhabi (Kizad) for an electric vehicle assembly facility, according to a KIZAD statement yesterday. Nwtn will run the manufacturing, R&D, vehicle testing and logistics facility, with Kizad handling construction.

The facility’s annual capacity in its first phase stands at 5-10k vehicles of semi-knocked-down EVs. In its second phase, NWTN wants to introduce several new EV models and expand the 25k sqm facility’s capacity to 50k units per year.

SOUND SMART- Semi-knocked-down kit is a car-industry term for vehicles that arrive at a plant with the body already welded and coated or painted, along with nearly all the parts needed for assembly. It’s called “SKD” in car-speak. A completely knocked down (CKD) kit is a box that arrives needing lots of work on site to assemble it, usually including welding and painting the body and often needing more local components. A CBU, or completely built up, vehicle is one that arrives at its destination already assembled, tires and all.

It seems Nwtn hopes to export some of the EVs assembled at the facility: “The strategic location, with direct access to regional and global markets and proximity to world-class manufacturing infrastructure in Kizad will allow Nwtn to enhance its operations long-term and increase our export potential,” Chairman and CEO of Nwtn Alan Wu said.

Kizad is home to several EV and other auto sector projects, including Lepidico lithium production facility — the region’s first, according to a statement in November.

There may be more EV plans for the UAE: Indian conglomerate Hinduja Group may be eyeing an EV assembly line in the UAE after the launch of its EV company Switch Mobility, we wrote last week. M Glory Holding Group, a Dubai- based tech investor, is also opening a USD 408 bn EV manufacturing plant with a capacity of 55k units annually, The National News reported.

SMART POLICY- In March, Abu Dhabi launched a regulatory framework for EV charging stations in a bid to attract investment to the sector and encourage consumers to switch to EVs. The UAE’s charging station to vehicle ratio is among the world’s highest, with the aim to have over 1K stations by 2025, according to a 2021 report by Clean and Energy Business Council MENA.

UK energy company Chariot Limited and Paris-based renewable energy producer Total Eren are starting feasibility studies on a 10 GW green hydrogen project in Mauritania, according to a joint company statement. The Chariot-Total Eren feasibility study for the USD 3.5 bn plant dubbed Nour should be completed in 24 months. Chariot and Total Eren will each own 50% of the project.

This is not the first time we hear of the Nour project: Back in May (pdf), Chariot had completed pre-feasibility studies and signed a framework agreement with the Mauritanian government. The pre-feasibility study revealed that the country is exceptionally well-placed for green hydrogen production in view of its solar and wind resources, giving it the potential to produce some of the cheapest green hydrogen globally, it added.

Chariot wants to export the plant's output to Northwest Europe: The UK company had signed an MoU with the Port of Rotterdam International to work together on connecting with off-takers. “The project could turn Mauritania into a leading supplier of green hydrogen to Europe, making it one of the largest energy projects of its kind in the world,” director of Port of Rotterdam International René van der Plas had said in a statement in April.

Each company is mulling more green hydrogen projects in other African countries. “We are keen to continue to expand our green hydrogen project portfolio and, as with our renewables business, we look forward to collaborating on further [projects] alongside Total Eren in the future,” Chariot CEO Adonis Pouroulis said.

Tunisia hopes to secure USD 100 mn in financing for 100 MW solar plant by November: Tunisia’s Energy Ministry is in talks with the African Development Bank (AfDB) and International Finance Corporation (IFC) to reach financial close by November on its USD 100 mn Kairouan solar plant, according to a ministry statement.

What do we know about the plant? The Kairouan solar plant was awarded to a consortium that includes Dubai-based renewable energy developer AMEA Power and Chinese energy solutions provider TBEA Xinjiang New Energy Company in 2019, WAM writes. AMEA Power was then awarded a concession and power purchase agreement in March 2022. Construction on the plant is set to begin at the end of 2022.

This is part of Tunisia’s push to build solar plants with a combined capacity of 500 MW across the country. As part of its national strategy to develop solar plants, Tunisia is looking to build a 200 MW plant in Tataouine, a 100 MW plant in Gafsa and two 50 MW plants in Tozeur and Sidi Bouzid. In total, the country aims to increase the share of renewables in its energy mix to 30% by 2030, equivalent to an additional installed capacity of approximately 4 GW.

Amman-based Jordan Ahli Bank (JAB) is partnering with environmental consultancy firm Sol Environment to produce biodegradable paper bags, according to a statement picked up by Zawya. In a bid to get rid of single-use plastics, the cooperation aims to produce biodegradable paper bags and distribute them to shops gratis.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• The Dubai Electricity and Water Authority (DEWA) received four offers from financial advisory firms to provide independent power producer advisory solutions for their 900 MW phase six of the Al Maktoum solar park, a company statement said.
• Algeria inked a USD 3.2 mn agreement with the UN’s Food and Agriculture Organization and Global Environment Facility to bolster agricultural production in the Kabylie region, according to green economy publication Afrik21.

China’s 2060 net-zero climate targets will cost almost USD 19 tn, China's special envoy for climate change Xie Zhenhua said at a conference last week, according to the country’s National Business Daily. The country is planning to hit peak emissions by 2030 and then reach net-zero by 2060. “It is not easy to reach peak carbon emission within seven years and achieve carbon neutrality 30 years after that while ensuring economic safety,” he added.

China tried to walk back on the 1.5°C Paris climate agreement at last week’s G20 meeting of environment ministers.

Scatec, EDF, IFC to develop Malawi 350 MW hydropower project: Norwegian renewable energy company Scatec, French electric utility company EDF and the International Finance Corporation signed an agreement to develop Malawi’s Mpatamanga 350 MW hydropower project yesterday, according to a statement by Scatec. The project comprises a 309 MW plant to be used only during peak demand hours, and a 41 MW downstream facility. The project will provide electricity to nearly 2 mn people and reduce electricity shortages. Scatec and its venture partners British International Investment and Norfund are majority shareholders with 55%, while the Government of Malawi and IFC will own 30% and 15%, respectively.

India’s Reliance Industries is acquiring a 79.4% stake worth USD 32 mn in solar energy software developer SenseHawk. The acquisition of SenseHawk, which develops automation software in planning and developing solar projects, comes as part of Reliance’s major push into renewables that would see it generate 100 GW of solar energy by 2030, Reliance Chairman and Managing Director Mukesh Ambani said in a statement. The acquisition is expected to be completed by the end of the year.

Sleepy Joe, the FBI, and now EVs are on Trump’s [redacted] list: Donald Trump took a stab at electric vehicles (EVs) in a campaign rally speech to endorse a Republican Senate nominee in Pennsylvania last week (watch, runtime: 1:29). The nonsensical rant — typical of the former Apprentice host (and one-time US president) — referred to “a friend of his,” who bought an EV and was not too happy about having to charge the car every two hours — and sometimes not finding a charging station to do so. “Please let’s get rid of this stuff. Please,” the poor fellow begged. Trump’s rationale for getting rid of them: Firstly, people can’t afford EVs because they’re “twice as expensive” and secondly, the batteries are all made in China because the “rare earth comes out of China” (he was dean of Geology at Trump U). Agent Orange also praised “clean, beautiful coal.”