Good morning, MENA. And if you are in the finance end of climate, this is not an issue you want to miss.

THE BIG CLIMATE STORY- Saudi Arabia’s sovereign wealth fund has kicked off its long-awaited maiden green bond issuance, multiple news outlets noted yesterday. The advisers on the multi-tranche, USD-denominated offering have already started making calls to investors.

ALSO- Egypt’s Climate Resilience Fund has launched and is on the lookout for pre-seed startups that tackle climate-focused agritech solutions as it looks to raise USD 25 mn. We speak below to the founders about their plans and targets.

^^We have more on these stories and more in this morning’s news well, below.

THE GREAT DEBATE- Qatar joins Saudi, UAE in calling for a slower divestment from fossil fuels: Qatar’s Energy Minister said “that emotional demands to ‘cancel’ hydrocarbons” are “unrealistic … and harmful to a realistic energy transition,” the Qatar News Agency wrote earlier this week. Geopolitical turmoil has hindered the transition towards clean energy, Saad bin Sherida Al Kaabi said at the Asia Green Growth Partnership Ministerial Meeting. Al Kaabi, who is also the president and CEO of QatarEnergy, said that “cleaner forms of hydrocarbons, with appropriate carbon abatement solutions, are an essential part of a reliable and a responsible transition” — pointing, naturally enough, to natural gas.

This is not the first time we have heard this: The UAE and KSA aren’t yet ready to do a 180 on fossil fuels, either. Senior officials have argued for continued fossil fuel investment, saying that current renewables capacity can’t meet energy demand.

So what now? The answer: investing in renewable energy while also relying on “cleaner” sources like natural gas to “manage intermittency issues — when the sun is not shining, or when the wind is not blowing,” Al Kaabi suggested. This statement was made after QatarEnergy signed agreements for the construction of the world’s largest blue ammonia project, worth some USD 1 bn, we previously wrote.

WORTH READING- MENA’s cement and construction sectors need 2030 targets, as opposed to 2050 or 2060, World Cement Association CEO Ian Riley tells Zawya Projects in a Q&A. Although 2050 and 2060 net zero targets are an important step, MENA’s cement sector has made little progress in emission reduction so far.

SOUND SMART- Average CO2 output per ton of cement in our region is 35% higher than the global average, Riley says.

We need better public policy to drive change: The absence of economic incentives for cement producers to adopt sustainable technologies is one of the biggest obstacles to doing better, says Riley. In developing countries in the region, weak currencies and the rising costs of inputs are also factors.

He notes that adopting sustainable processes at cement plants will not require significant additional capex and can be furthered through policies that could potentially halve the CO2 footprint of concrete. Riley adds that more transparency in emission data reporting is a first step to encouraging sustainability in cement production.

What’s happening with PPAs in Egypt? Power purchase agreements (PPA) hit two birds with one stone: They ease the transition to renewable energy while mitigating the financial burden it incurs. Egypt’s El Gouna, did just that in 2020 when it signed a PPA for 16% of its energy needs with SolarizEgypt. PPAs have become increasingly attractive as challenging economic conditions have taken a toll on investments in solar.

Want to read more? Check out Going Green, our weekly dive into Egypt’s green economy, in EnterpriseAM.

SPEAKING OF EGYPT- The country’s new “green” building codes for social housing got props from the World Bank. In an article entitled “Egypt’s green social housing supports climate efforts and improves quality of life for citizens,” the World Bank praised the program’s Green Pyramid Rating System (GPRS), which rates seven areas related to a building’s construction, including building materials and resources, as well as water and energy efficiency — noting that “green buildings can reduce energy consumption by 24-50%.” “Housing for All” is Egypt’s first national green building initiative.

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THE COUNTDOWN TO COP-

Egypt gets USD 6.2 mn in support of COP27 : Egypt signed an agreement with the United Nations Development Programme (UNDP), the European Union delegation to Egypt, the embassies of Denmark and Switzerland, and the African Foundation for Climate Change and Sustainable Development for USD 6.2 mn in funding to support the country’s COP27 presidency, according to an emailed UNDP statement on Tuesday. The project will see Egypt receive technical expertise and consultations to plan and organize the summit for November.

There are 40 days left until COP kicks off with the two-day world leaders’ summit opening on 7 November. Thematic days then run 9-17 November, starting with finance day.

HAPPENING TODAY-

The two-day World Green Economy Summit (WGES) in Dubai kicks off today. The gathering will focus on four different priority areas: energy, finance, food security, and youth, organizers note. Some 25 ministers from around the world will host a roundtable discussion at WGES. You can register for the event here.

The energy transition webinar series hosted by our friends at HSBC continues today and will run until Thursday. The series looks at the “latest climate analysis in relation to the global energy market and transition to net zero” throughout various sessions covering energy security, what is required to ensure the success of COP27, financing and investment needs for the energy transition, and the scaling up of renewables in the region, among other topics. You can still register for the series here.

WANT MORE on the region’s energy transition? Catch this op-ed in EnterpriseAM by HSBC’s Group Head, Center of Sustainable Finance and Head of Climate Change Middle East, North Africa and Turkey, Zoe Knight, on the capital that’s needed to help drive that shift.

Leaders in Construction KSA takes place at the Sheraton Riyadh Hotel. Tamer Shafik, vice president for business development at Orascom Construction, will give a keynote presentation at the half-day event on “sustainability as a key pillar for construction sector evolution,’’ the event’s organizers said. You can register for the event here.

The Global Manufacturing and Industrialisation Summit (GMIS) will also start today in Pittsburgh, US. The event, which runs through Friday, 30 September, is co-chaired by the UAE’s Industry and Advanced Technology Ministry and the United Nations Industrial Development Organization, and will see the participation of Sanad, ICT Fund, Etihad Rail and Emirates Global Aluminum (EGA). You can register for the event here.

Schneider Electric’s live webinar on net-zero data center operations takes place today at 4pm UAE (3pm Riyadh, 2pm CLT). The event will dive into how firms can chart a course for their data center operations to reach net zero emissions through digital transformation and measurement best practices. You can register here.

CIRCLE YOUR CALENDAR-

The American University in Cairo and UNICEF Egypt are jointly hosting a seminar entitled “The Road to COP27: Shifting behaviors to address climate change in Egypt” on Thursday, 29 September at the AUC’s New Cairo Campus. The seminar will look at how Egypt can use evidence-based solutions to address climate change and ensure financing and resources are effectively allocated. The event will be attended by UN Climate Change High-Level Champion for Egypt Mahmoud Mohieldin, Egypt’s Environment Minister Yasmine Fouad and executive director of the International Monetary Fund Jeremy Hopkins. You can register here.

Fitch Solutions is hosting a webinar on Saudi Arabia’s energy transformation next Thursday, 29 September. You can register here.

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