KSA’s Swicorp and Spain’s Acciona are building a 75 MW wind farm in Tunisia

Good morning, wonderful people. We have a deluge of regional updates across all sectors to kick off the week, so there’s no time to waste: Unleash the news.

But first, a quick programming note: Due to Egypt bringing back Daylight Savings Time (DST) after a lengthy hiatus, Enterprise Climate will now be landing in Egypt-based inboxes at 5am CLT. Countries in our region who (thankfully) don’t have DST will remain unaffected.

THE BIG CLIMATE STORY- Saudi investment group Swicorp and Spanish infrastructure group Acciona signed the technical and financial offer and lease commitment to build a 75 MW wind farm in Tunisia and Saudi-based recycling company Tadweeer has expanded its recycling production lines to include an iron production facility.

^^ We have the details on these stories and more in the news well, below.

A SOUNDBITE FOR THE AGES- US Republican Senator Ron Johnson praised the “beneficial” side of climate change during a Senate Budget Committee hearing last week, Newsweek reported. He argued that Americans should “take comfort” in climate change, citing part of a 2022 study that predicts an increase in deaths globally due to the economic impacts of climate change. “In terms of excess deaths, a warming globe’s actually beneficial,” he said while addressing the author of the study during the Senate hearing. “In my own state, your study shows that we would have a reduction in mortality of somewhere between 54 and 56 people per, I guess, it’s 100k. Why wouldn't we take comfort in that?”

Missing the point: Michael Greenstone, the study’s author, responded by saying that the senator was “misreading” the study, explaining that “the effects of climate change are going to be very unequal” and that “there's large swatches of the country where the damages will be much larger.”

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OVER IN COPLAND- Stakeholders should work together “to ignite a transformational COP28 agenda that is pro-growth, pro-climate, and leaves no one behind,” COP28 President-designate Sultan Al Jaber said in statements picked up by Wam. He said that the summit will work with stakeholders to advance a business-oriented approach that strikes a balance between climate action and sustainable economic and social development. Al Jaber made the statements at a meeting with Sheikh Abdullah bin Zayed, the head of the COP28 Higher Committee that is tasked with preparations for the November summit.

Al is central to mitigating climate change: Artificial intelligence will have a key role in channeling global potential for advancing climate progress, Al Jaber said during a visit to the Mohamed bin Zayed University of Artificial Intelligence, according to Wam. “Technologies being developed today have the potential to increase energy efficiency, reduce emissions, and ensure that economic growth and climate progress go hand-in-hand while advances in technologies like artificial intelligence, analytics and robotics will enable us to better decarbonize high emitting sectors, and measure and reduce energy consumption and emissions,” he said.

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WATCH THIS SPACE #1- The first COP27 transitional committee workshop wraps: The first two-day COP27 transitional committee workshop addressing climate-driven loss and damage impacts concluded in Germany yesterday, bringing together panelists from the World Meteorological Organization, the United Nations Development Programme, the United Nations Convention to Combat Desertification, the International Panel on Climate Change, the Caribbean Climate Risk Ins. Facility, the UNHCR, and the African Risk Capacity to discuss the shortcomings of institutions tasked with offering support to address extreme weather and slow onset events and discuss pathways to upping funding capacity for climate-induced loss and damage. The second day of the event saw panelists and speakers provide insights from the UNFCC’s existing work, with a spotlight on the current funding landscape for financing, and highlight innovative financial instruments going forward. You can watch the first day here (watch, runtime: 8:49:40) and the second day here (watch, runtime: 8:40:00).

WATCH THIS SPACE #2- Zero flare projects have helped Egypt save EGP 2.8 bn annually, Oil Minister Tarek El Molla said in a statement released on Saturday. He said 12 projects run by companies fully or partially owned by the government helped in lowering carbon emissions resulting from gas flaring and saving volumes of natural gas for reuse in other fields and activities, he said. Five other gas flaring projects are underway, the statement added, with others to follow.

WATCH THIS SPACE #3- EU carbon prices set for a boost after ETS reforms: A Reuters poll of seven analysts released on Friday sees the average price for EU carbon permits over the next three years rising on the back of the European nations’ approval of reforms overhauling the bloc’s Emissions Trading System. Analysts predict EU allowances will average EUR 86.17 per ton in 2023 (a 5.9% upwards revision from January forecasts) and EUR 96.19 in 2024 (up 2.2% from January predictions). Prices will average EUR 104.84 per ton in 2025, the analysts expect. The forecasts come days after EU countries gave the final approval to EU carbon market reforms aimed at making it costlier for industries to pollute and slashing carbon dioxide emissions. The new climate policy cracks down on European countries’ access to gratis CO2 permits by 2034 and adds shipping emissions to the carbon market starting 2024. It also includes a plan to phase in a levy on the import of high polluting goods including steel, cement, aluminum, fertilizers, electricity, and hydrogen by 2026.

WATCH THIS SPACE #4- Another climate finance advocacy campaign? France, Spain, Barbados, and Sierra Leone are backing a new coalition seeking more climate funds to help poor and vulnerable countries fight climate change, Reuters reported on Thursday. Led by Australia-based nonprofit group Global Citizen, the Power Our Planet campaign demands “nothing short of global systemic change to advance the mission to tackle climate change and end extreme poverty.” Co-chaired by Barbados Prime Minister Mia Mottley, the campaign will call on the world’s wealthiest countries to honor USD 16 bn in climate finance that was due in 2020 as part of the USD 100 bn climate finance pledge annually for vulnerable countries. The campaign will be promoted during the G7 summit this month, the New Financing Pact Summit in Paris in June, the G20 and UNGA in September, and COP28 in November, according to Global Citizen.

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WATCH THIS SPACE #5- An international H2 trade body could be forming: Panama plans to launch an intergovernmental organization to open the door for global trade in renewable hydrogen and its derivatives, the country’s Energy Undersecretary Rosilena Lindo told Argus last week. She said her country’s plans for the Hydrogen International Trade Organization will be announced during COP28 later this year, adding that she has held informal talks with “more than 16 countries” on the proposal and “everybody is on board.” Panama wants to have at least 10 countries ratify and approve a treaty outlining the organization’s goals within a year of its launch, she added. The countries Panama is courting to join the body have not been disclosed.

Could the MENA region be tapped to join? MENA is emerging as a potential green hydrogen hub, with Morocco, Egypt, KSA, and Oman having the most advanced hydrogen strategies, according to an Irena report (pdf) last year. Morocco and KSA are among five countries best placed to become major clean hydrogen producers by 2050, Irena notes. Egypt is also a potential hub with the capacity to produce 20 mn tons of green hydrogen per year, with 12.5 mn tons earmarked for export, according to a recent report (pdf) supported by the European Investment Bank.

WATCH THIS SPACE #6- Some 65% of carbon emissions reduction in the aviation industry will come from the switch to sustainable fuels, according to a statement from the International Air Transport Association. Production of those fuels, however, remains low, Brendan Sullivan, IATA’s Global head of Cargo said, adding that the right set of incentives could help production reach 30 bn liters by 2030 — which would be seen as a tipping point towards the net zero goal. (Arab News | MENA FN)

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COME TO OUR NEXT ENTERPRISE FORUM-

The Enterprise Exports & FDI Forum, our latest industry-specific conference, is taking place on Monday, 15 May. The Enterprise Exports & FDI Forum will give insiders and newcomers alike the chance to talk about how to develop an export-centered business and how their companies can help Egypt build an export-led economy that makes us a magnet for foreign direct investment (FDI).

Why exports & FDI? In the wake of successive floats of EGP, exports and FDI have never been more important to our economy — or our businesses. We’re gathering some of the CEOs, top execs from local companies and multinationals, investors, bankers and finance folks to speak on how businesses can adapt their strategies to be export-oriented and what Egypt as a country can do to draw foreign investment and much-needed FX. Expect it to be heavy on lessons learned in Egypt and other global growth markets — and lots of success stories. You can learn more on our conference website here.

And what better place to discuss moving our goods than Egypt’s original logistics zone — the Nile. That’s why we’re looking forward to holding the event by the river’s vistas at the Four Seasons, Nile Plaza.

Some of the biggest names in business and finance are on board — are you? The Enterprise Exports and FDI Forum is taking place with the generous support of our friends, including:

Banking partners: Banque Misr | Al Baraka Bank | Emirates NBD | HSBC

Lead partners: DB Schenker | DP World | East Port Said Development | IDG | IFC | Madinat Masr

Event partners: Beyti | Concrete | Global Corp | Grant Thornton | Hassan Allam Utilities

WANT TO BECOME A COMMERCIAL PARTNER? Ping a note to Moustafa, our head of commercial, here.

HAVEN’T REQUESTED AN INVITE YET? If you’re a C-suite exec, business owner, DFI staff, export executive, investor or banker, please fill out the form here to signal your interest, letting us know your name, title and where you work.

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CIRCLE YOUR CALENDAR-

Turkey is hosting the International 100% Renewable Energy Conference this Thursday, 4 May to Saturday, 6 May in Istanbul. The event will bring together experts to discuss the integration of renewables, renewable energy technologies and applications, and the Roadmap to 2050.

The UAE is hosting the Global Green Future Fuel conference from next Monday, 8 May to Wednesday, 10 May in Dubai. The green energy-focused business event brings together policymakers, renewable energy generators, project developers, and chemical and mobility industry representatives to define a new energy future shaped by hydrogen.

Egypt is hosting The Solar Show MENA next Tuesday, 9 May and Wednesday, 10 May in Cairo. The conference brings together policymakers, financiers, and others to develop and futureproof the region’s energy sector as one of the emerging players in developing clean energy solutions and energy infrastructure.

The UAE is hosting The Airport Show on Tuesday, 9 May to Thursday, 11 May in Dubai. The forum’s 22nd edition will bring together over 200 aviation companies and more than 100 buyers from 23 countries. It will shed light on leading innovations in airport sustainability, digitalization, and urban air mobility to facilitate the industry’s path towards sustainable and collaborative airport infrastructure development and operational transformations.

The UAE is hosting the UAE Climate Tech forum on Wednesday, 10 May and Thursday, 11 May in Abu Dhabi. The event will gather over 1k policymakers, CEOs, experts, and investors to discuss collaboration on innovative technologies and economic opportunities in advancing decarbonization across all sectors.

The first MENA Solar Conference is accepting applications from published researchers specialized in PV technology until next Sunday, 30 April. The Dubai Electricity and Water Authority will be hosting the conference from 15 to 18 November, in conjunction with the Water, Energy, Technology, and Environment Exhibition and the Dubai Solar Show 2023. Researchers can submit their papers here.

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

KSA’s Tadweeer kick off new iron production line: Saudi-based recycling company Tadweeer launched an iron production facility expected to produce some 120k tons of the metal per annum, according to a disclosure to Tadawul. The financial details and location of the facility was not disclosed.

Added revenue stream: Establishment of the new facility is in line with the company’s targets to expand production lines to support KSA’s circular economy and increase its market share in the recycling sector, the statement notes. The new production line is expected to rake in SAR 100 mn this year, adding some SAR 160 mn to the company’s revenues beginning in 2024, it adds.

Tadweeer has been active lately: The company signed a USD 11.36 mn agreement with two KSA-based firms Tebrak Trading & Contracting Company and Mounes Mohamed Alshayeb for Civil Construction for the development of e-waste repurposing plants in the Kingdom in January. The electronic waste recycling factories will have a processing capacity totaling 40k tons per year once they become operational in 2Q 2024, and are expected to double Tadweeer’s sales.

A new Tunisian wind farm in the works: Saudi investment group Swicorp and Spanish infrastructure group Acciona have signed the technical and financial offer and lease commitment to build a 75 MW wind farm in Tunisia, Tunis Africa Press Agency reported on Friday. The project is estimated to cost TND 500 mn (c. EUR 149 mn) and will break ground at the end of 2025, with a construction time of 18 months.

What we know: The wind farm will include 14 wind turbines in Tataouine’s Chenini village and there are plans to build a 225-kV transmission line from Chenini to Tataouine alongside the installation of the wind turbines. The Tunisian Electricity and Gas Company plans to purchase the generated power from the wind park under the supervision of the country’s Energy and Mines Ministry, according to the state-owned newswire.

REMEMBER- A switch to renewables remains a priority for Tunisia, with the country eyeing an energy mix that includes 1.75 GW of wind power by 2030, according to a report (pdf) by the African Development Bank. The country’s wind potential is estimated at 8 GW, the report said. The government has been pushing to lure investors to tap into its wind potential, launching since May 2018 pre-qualification tenders for 500 MW of wind energy capacity, according to the newswire. More recently, Tunisian Energy Minister Neila Nouira Gongi told Zawya the country’s 100 MW Kairouan solar plant “will be ready” this year.

UAE takes first steps in eVTOL and electric drone manufacturing: Abu Dhabi-based infrastructure investment company Monarch Holding signed an agreement with China-based autonomous and electric air mobility company Ehang Holding to establish a manufacturing facility for electric vertical take-off and landing (eVTOL) aircrafts and drones, Wam reported on Friday. The facility, which will be the first of its kind in the region, aims to manufacture electric vehicles for both passenger and cargo use.

Integrating eVTOL infrastructure is part of the agreement: Monarch and Ehang aim to establish a command-and-control center to manage air mobility autonomously, as well as build a micro-scale airport — known as “vertiports” — designed for eVTOLs. The agreement also includes a plan to train Emirati staff in operation and maintenance of the emerging technologies. The companies did not disclose where the vertiport will be located.

Not the first Emirati vertiport lined up: Canadian air mobility infrastructure developer Vports signed an agreement with UAE’s Ras Al Khaimah Airport last month to build and operate a vertiport designed for eVTOL aircrafts.

And the UAE is establishing itself as a site for eVTOL flight testing: Vports signed in December a 25-year lease agreement with the UAE’s General Civil Aviation Authority and the Mohammed bin Rashid Aerospace Hub to build an eVTOL flight testing site, at which Japan’s SkyDrive will be testing its eVTOLs. The country also granted US logistics firm United Portal Services a temporary flight permit to conduct flight tests to trial its eVTOL fleet.

Fresh climate funding from Europe: The European Commission and the European Investment Bank (EIB) will funnel EUR 18 bn in funding under Europe’s investment strategy for partner countries Global Gateway to help bridge global climate financing gaps and support adaptation and mitigation efforts, according to a joint statement released on Thursday. The new financing package aims to boost investments in the strategy’s priority areas, including climate action and clean energy in partner countries globally.

What they said: “This EUR 18 bn in financing will get even more such projects off the ground, swiftly. Global Gateway will help advance the climate transition around the world, improving people's lives and making our partners more resilient,” European Commission President Ursula von der Leyen said. EIB Global, the arm of the EIB that works beyond the EU, has already mobilized investments amounting to EUR 31 bn under Global Gateway, EIB President Werner Hoyer said.

A much needed bridge for MENA’s climate finance gap? The MENA region continues to suffer from a large climate finance gap, with finance flows remaining feeble. Finance flows into the region are currently estimated at between USD 5.1-7.4 bn annually, according to UNFCCC figures. The figure is lower than the minimum USD 436-487 bn needed by the region to address and cope with climate change until 2030. One of Global Gateway’s highlighted projects is the Africa – EU Green Energy Initiative, which works on expanding the share of renewable energy sources in Africa’s energy production, including North African countries.

About Global Gateway: Launched by the European Commission and the EU High Representative, Global Gateway is a European initiative that aims to “boost smart, clean and secure links in digital, energy and transport sectors and to strengthen health, education and research systems across the world,” according to the European Commission's website. It aims to mobilize EUR 300 bn in investments between 2021 and 2027 with a mix of grants, concessional loans, and guarantees to eliminate risks for private sector investments.

Tunisia announces its first EUR 200 mn wastewater PPP contract: The National Office of Sanitation of Tunisia (ONAS) has awarded the Tunisian water industry's first public-private partnership to a consortium led by French water utility company Suez, according to a statement. ONAS chose Suez, Segor, SCET Group, and BIAT1 to operate the public wastewater treatment service for Sfax, Gabès, Medenine, and Tataouine governorates.

What we know: The 10-year, EUR 200 mn contract will be financed by the World Bank and by the Tunisian state, the statement notes. Financing from the World Bank will be directed towards the restoration and extension of infrastructure, funds from the state will cover the operation and maintenance of this infrastructure. The contract also covers the renovation of existing wastewater treatments plans and other work that will allow for the use of wastewater for agriculture through tertiary water treatment processes such as ultraviolet light treatment and phosphorus removal.

The details: The infrastructure will have a treatment capacity of 39 mn m3/year from 14 wastewater treatment plants, 106 pumping stations, and 1.9k km of pipelines, the statement notes. It will provide wastewater services for c. 960k residents in the four governorates.

UAE’s Quazar forms new graphene-manufacturing JV: The UAE’s Quazar Investment Company and UK-based Graphene Innovations Manchester (GIM) have signed an agreement to establish a UAE-based JV to develop and produce a wide range of graphene-based products, according to a statement. The JV aims to invest USD 1 bn in the development and manufacturing of their products, which include graphene-based concrete and hydrogen storage vessels. The timeline for the company launch is yet to be announced.

More about the products: Unlike conventional concrete, Graphene’s GIM Concrete eliminates the use of cement — one of the biggest sources of industrial air pollution — as well as water, according to the statement. GIM Concrete is 30% lighter than traditional concrete and 4x better at resisting heavy loads, curing in two to four hours. The company’s hydrogen storage vessels can safely contain up to 35% more hydrogen, while at the same time having lighter, more durable and impermeable properties.

About Quazar: Quazar is a private equity firm that invests in both private and public sector companies in a diverse range of UAE industries, including technology, energy, oil & gas, agriculture, and water.

About GIM: Graphene Innovations specializes in designing graphene-based compounds and production systems at a commercialized scale to be used in sustainable initiatives such as rubber tire upcycling.

Egypt, Japan talk renewables: Japanese Prime Minister Fumio Kishida sat down with Egypt’s President Abdel Fattah El Sisi yesterday to discuss potential partnership agreements in the renewable energy sector among other areas, according to an Egyptian presidency statement. The two parties agreed to strengthen cooperation to establish a strategic partnership during Kishida’s three-day visit to Egypt, which will conclude tomorrow.

And there’s more cooperation incoming from Austria: Egypt’s Prime Minister Moustafa Madbouly and Austrian Chancellor Karl Nehammer signed a letter of intent to explore potential cooperation on projects in the green hydrogen, desalination, agriculture, water resources management, and renewable energy sectors, according to a cabinet statement. Madbouly and Nehammer also inked two agreements to establish a company for the production of railway turnouts for Egypt’s first all-electric train between Austria’s Voestalpine and the Egyptian National Railways, according to a separate statement. An undisclosed sum of the company’s production output will be earmarked for export.

Ditto with the Qataris: Egypt’s Finance Minister Mohamed Maait met with Qatari counterpart Ahmed Al-Kawari in Rabat, Morocco, to explore avenues of cooperation in a host of sectors, including potential in the renewable energy sector as Egypt looks to look in more foreign and private sector investment to boost its economy, a cabinet statement released yesterday said.

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UAE, Cambodia solidify renewables trade: Emirati Foreign Trade Minister Thani Al Zeyoudi has finalized the terms of a Comprehensive Economic Partnership Agreement (CEPA) with Cambodian Commerce Minister Pan Sorasak to boost bilateral trade including renewable energy, Wam reported on Thursday. The partnership would eliminate tariffs and other barriers to trade while promoting the exchange of a diverse range of goods, services, and investments.

This could help the UAE overcome supply chain issues: Solar projects in the UAE, Saudi Arabia, and Egypt have all faced delays in recent years, partly due to difficulties procuring essential manufacturing components off the back of rising import costs and import restrictions.

But removing tariffs isn’t a W for all: The UAE has made efforts to manufacture solar panels locally, with three of the top solar manufacturing companies in the region being based in the UAE. A tariff waiver with Cambodia would lead to tough competition against the lower cost of importing.

No more wiggle room for oil companies on methane emissions: At least two dozen high-resolution satellites will be able to detect methane released from oil and gas operations at an asset level by the end of this year, Bloomberg reported on Friday. The satellites are equipped with sensors to detect the natural gas component from pipelines, unlit flares, storage tanks, and compressor stations anywhere in the world. The groundbreaking emission detection technology comes in response to demand for “facility-level information on emissions because it’s directly actionable,’’ a Harvard researcher tells Bloomberg.

And on the subject of methane: Environmental groups, including US-based Gas Leaks, are pushing US federal regulators to set policies that discourage companies from using the term “natural gas” in marketing campaigns, Bloomberg reported last week. The groups argue that the language implies that natural gas is a green fuel, and obscures the damaging effects of its extraction and burning. The groups suggest using alternatives including “methane gas” and “fossil gas.”

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The food supply for marine life in the ocean’s twilight zone is at risk due to climate change warming the world’s waters, according to a study published in Nature last week. The twilight zone — located 200 to 1k meters below the ocean’s surface — is home to several specially adapted species like lantern sharks and kite fin sharks. The study suggests that warmer temperatures in the ocean could affect food supply and dissolved oxygen availability at that depth. “Our findings suggest that significant changes are already underway, and without strong emissions mitigation, widespread ecological disruption in the twilight zone is likely by 2100, with effects spanning millennia thereafter,” it said.

Possible scenarios: The study sees three possible futures for the twilight zone: a low emission scenario that allows a total of 625 bn tons of emissions from 2010 onward, a mid-range of 2.5k bn tons, and a high one of 5k bn tons. “If we get to the medium or high scenario both are very bad news for the twilight zone,” Katherine Crichton, the study’s lead author, was quoted as saying by The Guardian.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• Europe's Cryosat spacecraft found that the 200k existing glaciers have lost 2% of their weight in the span of 10 years, the equivalent to 2.7k bn tons of ice. (BBC)

Kuwait plans to build its first specialized zone for industrial waste recycling, local newspaper Al Qabas reported last week, citing people with knowledge of the matter. The country’s Public Authority for Industry is in the final process of selecting a consultant for the project, which will be built in the Northern Shagaya region. The 2 sq km project will be divided into 215 plots of land allocated for recycling factories managing industrial waste like tires, plastic, wood, building materials, minerals, and others. No financial details or a timeline for the project have been disclosed.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• Saudi Arabia’s Water and Electricity Regulatory Authority has qualified 106 renewables developers to deploy mini solar energy units after setting up a regulatory framework for individual solar consumption in November last year. (Argaam)
• The Dubai Roads and Transport Authority (RTA) subsidiary Dubai Taxi Corporation has signed a MoU with Canadian AI-enabled platform BluWave-ai to explore best practices to transform Dubai’s taxi fleet into eco-friendly vehicles. This is part of the RTA's plan to have the city’s taxis go 100% green by 2027. (Statement)
• Masdar CEO Mohamed Jameel Al Ramahi met with Emiliano García-Pageto, president of Spain’s autonomous region Castilla–La Mancha to explore renewable energy partnerships. (Twitter)
• UAE’s Switch Foods kicked off operations on its new alternative protein production factory in Abu Dhabi’s Khalifa’s Industrial Zone. (Statement)

Global lithium supplier Chile plans to restructure its production model: The Chilean government is reportedly looking to remodel the country’s lithium production model to shore up majority stakes in companies producing the rare earth for the state, Bloomberg reported on Friday. Critics of the nationalization plans say a state-administered system could run the risk of jeopardizing the world’s supply of the metal. Chile is the world’s second largest supplier of the precious metal, which is essential to EV battery production.

China’s ambitious nuclear generation outlook: A leading Chinese nuclear energy firm forecasts a boom in atomic plants in the coming decades to help meet decarbonization targets, Bloomberg reported on Thursday. China General Nuclear Power Group Co. Chairman Yang Changli expects the nation’s nuclear fleet to rise to 400 GW by 2060, accounting for some 18% of the country’s overall generation. The outlook is seven times that of China’s current capacity, which accounts for 5% of the country’s electricity.

And it drew the line on nature: China has finalized a nationwide ecological protection “red line” plan that aims to protect the country’s ecosystems and reverse damage caused by wide-scale urbanization, Reuters reported on Thursday. Some 3 mn sq km, or 30% of China’s total area and 150k sq km of marine areas are now under the state’s watch.

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Singapore’s first ship-to-ship ammonia transfer could take place by the end of the year, the Global Centre for Maritime Decarbonisation (GCMD) said, according to Reuters. The move is pending the green light from the relevant regulatory agencies, according to GCMD CEO Lynn Loo.

And speaking of green fuel… : The use of standardized fuel by shipping companies may soon be a thing of the past with the push toward decarbonization, with a likely multi-fuel future for the international shipping industry, Bloomberg reported on Thursday, citing a joint industry study. The study shows 45% of respondents see vessels running on a mix of fuel oil/biodiesel, methane, methanol, and ammonia by mid-century. Hydrogen could also be in the mix, albeit at a specified level.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• Tokyo-based automaker Honda plans to bring to the market two EV models developed with General Motors next year, and a larger EV model in 2025 after as part of its global strategy for electrification. (AP)
• US-based private equity outfit Carlyle Group is in hot water after it was found that its portfolio of fossil fuel companies nearly doubled its average annual greenhouse gas emissions over the past decade. (The Guardian)
• Japan’s third largest refiner Cosmo Energy plans to maintain its current refining structure of 363k bpd until at least 2030 despite a projected decline in gasoline demand. (Reuters)
• Private equity giant Apollo Global Management launched a USD 4 bn fund specializing in energy transition investments. (Reuters)
• British multinational bank StanChart backtracked on financing the USD 5 bn crude oil pipeline in Uganda following demands from climate activists. (Bloomberg)

Your Levi’s will be more climate-friendly: Levi Strauss & Co. (Levi’s) has committed to a water-saving method called “contextual water targets” that promises to reduce water use in factories located in water-scarce areas including Egypt, according to Bloomberg. Contextual water targets prioritize factories in areas with low levels of available water, curbing water use more diligently in water-stressed areas even though water consumption measures are in areas such as the US may be easier to achieve.

Jeans manufacturing is one of the most water-demanding activities: A single pair of jeans can consume up to 3.8k liters of water to produce, Bloomberg writes, and Levi’s wants all key mills and factories to meet contextual water targets by 2025 with a target of cutting water consumption by 50% in water-scarce areas.

Innovative water-saving tactics: Levi’s has come up with 20 new water-saving techniques including swapping detergents with small amounts of water and ozone gas, or softening jeans by tumbling them with bottle caps and golf balls instead of using fabric softener and water. The company said it also pushes for the reuse and recycling of water.

However, science-based targets are more effective than contextual-based ones: Science-based targets are based on hydrological data, identifying the quantity and quality thresholds that cannot be surpassed if the freshwater basin were to be sustainable. This method can better define what an individual company must do to improve a local water system, Bloomberg writes.