Bill Gates thinks we should all step up our nuclear ambitions

Good morning, wonderful people. It’s a quiet start to the week on the climate front: Not much is happening outside of preparations for COP27, and even that was reasonably muted over the weekend.

Some of that quiet? Probably due to lots of overlapping holidays all over the region — and the world. Thursday was off in Egypt in observance of Armed Forces day, while everyone from Morocco across to Oman (with the exeeptions of our friends in Saudi Arabia and Qatar) observed the Prophet Muhammad’s Birthday over the weekend. Canadians are celebrating Thanksgiving today, and their American neighbors are off in observance of Columbus Day (and celebrate Thanksgiving in late November).

THE BIG CLIMATE STORY- Bill Gates wants us to invest in nuclear — and he kind of has a point: At a conference on the countdown to COP27 in Abu Dhabi last week, the Microsoft founder lauded the UAE for the Barakah nuclear power plant and urged that MENA invest in nuclear energy as part of its green transition. There’s plenty of controversy and concern about nuclear safety — and it’s largely overblown. We break down why Bill has a point in this morning’s news well, below.

DON’T LET THE WEEKEND FOOL YOU: We’re all in for a busy day:

WATCH THIS SPACE #1- The annual meetings of the IMF and World Bank kick off today in Washington, DC, and will run through Sunday, 16 October. While the focus will be squarely on the global economy, climate change and the green transition will feature prominently during the gatherings, according to the schedule for the meetings.

Speaking of the World Bank: The institution’s senior climate change advisor, Stephane Hallegatte, is speaking at seminar being held in Cairo by the Egyptian Center for Economic Studies today in Cairo. You can register for the event here.

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WATCH THIS SPACE #2- Egypt’s Senate will discuss legislation today that could set up a new regulatory body and fund to promote the electric vehicle industry. The legislation sets up the Supreme Council for Vehicle Manufacturing, which will set policies for the automotive sector in general, including EVs, and a fund to provide incentives. We had the details of the legislation here last week.

The Senate will also discuss amendments to the Environment Act that would see a “green fee” of between EGP 1k and EGP 50k levied on new diesel- and gas-fired vehicles, according to a report prepared by the Senate’s environment, and trade and industry committees. As the bill currently stands, some 80% of the proceeds would go towards localizing what the politicians are calling “climate-friendly vehicle industries,” with the rest to be split between the Environment Protection Fund and the state budget.

Wait, Enterprise: What’s this “climate-friendly vehicle industry” talk? Not just EVs? Nope. Egypt, with its abundance of natural has, has been positioning both EVs and dual-fuel vehicles as options. Dual-fuel vehicles are converted to burn both gasoline and compressed natural gas (CNG), with storage tanks taking up trunk space.

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WATCH THIS SPACE #3- European Union officials are meeting in Algiers today with top government officials for an energy dialogue. Among the topics: How Algeria can expand its renewable energy industry in the coming decades, the European Council on Foreign Relations

The sit-down comes just days after Algeria and Italy stepped up concrete talks designed to step up cooperation on renewables. Algeria’s state-owned electricity and natural gas distributor, Sonelgaz, is mulling agreements with Italy’s Enel Group in a number of sectors, according to a Sonelgaz statement. Among the ideas are working together on battery energy storage, PV panel manufacturing, green hydrogen production, and smart meters.

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WATCH THIS SPACE #4- It’s the last day to file your expression of interest for a piece of the 900 MW for phase six of Dubai’s Al Maktoum solar park, according to a statement by Dubai Electricity and Water Authority (DEWA) on Saturday. The 900 MW Phase 5 of the project was completed in early September.

*** Take our EV survey: Are you an ex-petrolhead shopping around for your first electric vehicle? EV-curious and wondering what all the fuss is about? Or are you not ready to say goodbye to that sweet smell of benzene as you wait at the gas station?

We want to hear from you: We’re taking the pulse on how the region feels about MENA’s EV transition. Take a few minutes to fill out our short survey. We’ll be back with the results in a couple of weeks.

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THE COUNTDOWN TO COP (28 days to go)-

US President Joe Biden will likely make an appearance at COP27 in Sharm El Sheikh, as part of a trip that will include other major global summits, the Washington Post reports, citing unnamed sources. Biden’s attendance at COP27 means that “there is sufficient evidence” for a “[agreement] to be clinched or a game-changing announcement to be made,” one European diplomat told the news outlet.

The UAE is already talking up COP28, saying the gathering next year will be the “most significant climate conference since Paris,” according to a report in the National.

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THE BIG CLIMATE STORIES OUTSIDE OUR REGION-

WATCH THIS SPACE #2- Global aviation wants to reach net zero by 2050. The International Civil Aviation Organization (ICAO) said last week it has agreed to a long-term global aspirational goal (or “LTAG” in climate-speak) that would see it hit net zero by 2050, according to an ICAO statement. Some 184 countries, including almost all of MENA, agreed to the goal, UN agency ICAO said.

Lots has to happen for the aviation industry to hit is mark. It needs to slash emissions, accelerate the adoption of new aircraft technologies, streamline flight operations and sort out sustainable aviation fuels, the statement said. Sustainable fuels will be the topic of an ICAO gathering next year, with the body’s president saying (in UN-ese) that flying with zero emissions will require plenty of work from governments and industry players alike.

MEANWHILE- Category 1 Hurricane Julia hit Nicaragua’s Caribbean coast with wind speeds totalling 140 km per hour on Sunday after battering Colombia’s San Andres Island, news outlets reported. “Life-threatening flash floods and mudslides possible from heavy rains over Central America and Southern Mexico through early next week,” the US National Hurricane Center detailed in a statement, adding that Julia’s impact will be felt through Tuesday. (NPR | Reuters | Washington Post | AP)

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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 at 4am 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.

Subscribe to Enterprise Climate here or reach out to us on climate@enterprisemea.com with comments, suggestions and story tips.

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WORTH READING- Sustainability-linked bonds do not necessarily push ESG standards forward: The majority of sustainability-linked bonds are tied to weak, irrelevant or already-achieved climate targets, according to Bloomberg. If firms fail to meet the targets they set out for themselves, they repay the capital they amassed from investors with financial penalties on top. Companies get cheaper financing and a green reputation while not really holding up their end of the bargain, Bloomberg writes, referring to a study that analyzed more than 100 sustainability-linked bonds worth almost EUR 70 bn sold to European investors by global companies.

CIRCLE YOUR CALENDAR-

Cairo Water Week 2022 will kick off on Sunday, 16 October and run for four days. Discussions will revolve around climate change strategies and development plans, sustainable financing solutions, as well as water recycling, among other topics.

The Middle East Facility Management Association’s seminar on sustainable development will take place on Wednesday, 12 October in Riyadh, Saudi Arabia. The event will focus on how tech can help overcome challenges stifling the sustainable development of the facilities management sector in Saudi Arabia. You can register for the event here.

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

Bill Gates thinks MENA can be a hub for nuclear: Bill Gates emphasized the impact MENA nuclear power projects — such as the Barakah nuclear energy plant in the UAE — have in helping accelerate the transition to low-carbon energy sources, the National reports the Microsoft founder as having said at an event last Thursday. “The nuclear reactors at the Barakah power plant that are operational and pumping electricity into the grid are examples of how the country is managing the transition thoughtfully,” he said at the Economist Impact’s Sustainability Week in Abu Dhabi. He also called upon major oil-producing nations to explore cleaner ways to extract hydrogen.

He’s even suggesting the region could leapfrog into fusion: MENA could lead by developing nuclear fusion reactors that “are safe and cheaper than traditional energy sources,” he noted.

SOUND SMART- What is nuclear fusion? In short, nuclear fusion is a reaction that could potentially generate unlimited energy by fusing the nuclei of atoms — as opposed to splitting the nuclei of an atom in a conventional nuclear fission reaction. Fusion reactions, which power the stars, need temperatures equivalent to 100-200 mn C, so, until very recently, it had been relegated to the realm of science fiction. Recent advancements in the technology, however, are slowly suggesting that controlled fusion reactions may be within reach — to the point that the UK greenlit the world’s first fusion station last week. The caveat: The UK government said that there are “no guarantees” that the GBP 20 bn plant, which is set to be complete in 2040, will work.

Chernobyl (and the Simpsons) gave nuclear a bad name, but remember, that was in the 80s: Nuclear energy in general has had a bad rep, thanks to incidents like Chernobyl, Three Mile Island, and more recently, Fukushima. But the damage from these incidents has been exaggerated. 43 people, in total, died as a result of long-term radiation from Chernobyl over the span of 25 years, according to a 2008 UN report (pdf). That’s out of around 350k people that had to be evacuated from the area. That’s been in large part due to the safety measures and precautions in place back then.

Safety measures, as well as data collection and sharing, have also gotten better over time, and continue to do so, according to the International Atomic Energy Agency (pdf). The lack of any major incidents since Fukushima in 2011 (which resulted from an earthquake and tsunami) speaks volumes to safety.

The UAE’s Barakah is an example of nuclear done right: The 5.6 GW nuclear power plant — the region’s first multi-unit nuclear power plant — has gotten a thumbs up from IAEA safety inspectors as recently as last month. Barakah “had strengthened operational safety by fully addressing the findings of an initial IAEA safety review mission five years ago,” the IAEA said. Furthermore, the Emirati Nuclear Energy Corporation (ENEC), which owns Barakah, signed an MoU with the UAE Cyber Security Council yesterday to ensure cyber security response at its facilities. The plant recently inaugurated its third 1.4 GW unit, which was connected to the national grid over the weekend.

And the region is not far behind: Egypt kickstarted construction on its USD 30 bn Dabaa nuclear power plant in July of this year. The 4.8 GW was expected to be fully operational in 2029, with the first of four 1.4 GW reactors expected to come online in 2026. Meanwhile, Saudi Arabia has taken steps this year toward getting a nuclear energy program underway. The country is currently studying a viable location for a plant, after establishing a holding company to develop nuclear power back in March.

UAE’s Ryse Energy to provide the UK with renewable energy storage solutions: UAE-based Ryse Energy and YEO signed a joint venture agreement to provide renewable energy battery storage solutions in the UK for wind, solar and micro-hydro projects, according to a statement published Friday. The companies did not disclose the financial details of the agreement.

The JV will operate at utility scale: The new UK-based company will “[provide] medium and large-scale renewable energy projects [and] will provide wind, solar, micro-hydro, and battery storage solutions to private, commercial, industrial, and public sector customers,” the statement adds.

The news comes as the UK braces for an energy crisis that has the national grid warning that some homes could suffer multiple-hour power cuts this winter in a “worst case scenario” for how things could evolve this winter. The UK, like much of Europe, is facing a natural gas shortage in the wake of turmoil in the energy market caused by Russia’s invasion of Ukraine. The UK imports power from Europe and relies on natural gas to generate more than 40% of its electricity.

A Saudi renewables company is in talks with South Africa to invest in the renewable energy sector, South Africa’s Trade, Industry and Competition Minister Ebrahim Patel told South Africa’s broadcasting agency SABC News ahead of the South Africa-Saudi Arabia Joint Economic Commission in Pretoria last week (watch, runtime: 8:35). South Africa is looking to attract more investment from Saudi Arabia as it struggles to maintain its energy supply. Saudi Arabia’s Energy Minister, Akram Jadawi, confirmed the talks in a discussion with SABC last week, but gave no details on which companies are involved or the size of the potential investment.

Jordan’s Environment Ministry launched the Jordan bottle recycling project on Wednesday, according to a ministry statement. The project, in partnership with Nestlé, beverage company Diageo and the United Nations Human Settlements Programme and managed by Development Inc. International, will set up waste collection machines in 250 hotels and restaurants in Jordan and offer rewards to consumers.

ALSO- Pepsico’s MENA Greenhouse Accelerator Program provided a USD 100k grant to waste management startup Nadeera, which came out on top of the FMCG company’s UAE sustainability program, a company statement said.