Good morning, wonderful people. The MENA conversation on climate is being driven by developments in Washington, DC, where bankers, investors and folks from the development finance community are gathering for the World Bank and IMF fall meetings. The gatherings got underway yesterday, and climate leapt to the forefront of the agenda after US and Germany called for the World Bank to become more active in the industry.

THE BIG CLIMATE STORY GLOBALLY- The US and Germany want the World Bank to overhaul its business model to focus more on climate action, the Financial Times writes. What are they suggesting? That the WB provide better borrowing terms to create incentives for countries to take action on climate issues. Germany also wants the bank to de-risk clean energy investments in developing countries. This comes after US Treasury Secretary Janet Yellen called on the World Bank to establish an “evolution road map” for green finance by December.

The calls come after a series of anti-climate allegations against the World Bank in recent weeks: An Oxfam report last week claimed that the World Bank had ‘misplaced’ up to USD 7 bn in climate funding in 2020 and an influential US activist group accused WB chief David Malpass of being a “climate and development failure” in a release out ahead of the fall meetings. That came after David Malpass, a Trump administration appointee, found himself in hot water after initially refusing to acknowledge that human beings are driving climate change.

Someone’s had a stern word with Malpass: Malpass yesterday said the bank is “working hard” to get more climate finance to developing countries, according to Reuters. Meanwhile, IMF head Kristalina Georgieva said the world needs some USD 3-6 tn to face climate change, calling to leverage development funding to bring in more private sector players. After the initial flap, Malpass had said that the WB would maintain an “intense” focus on climate.

AND SPEAKING OF THE WORLD BANK- We sat down with Emmanuel Nyirinkindi, vice president of cross-cutting solutions at the WB’s International Finance Corporation. Our talk centered around climate finance and the prominent role of green bonds and blended finance instruments. We look at the challenges of obtaining climate funding and what the IFC hopes to see come out of COP27.

THE BIG CLIMATE STORY in our neck of woods: A pledge of EUR 2 bn from Moroccan expat businesses to invest the country. Much of that investment (which only appeared to make headlines outside the country this week) is going towards renewables, including major projects in the country’s south. We breakdown the details in the news well, below.

PSA- There are 27 days left until COP27 kicks off in Sharm El Sheikh.

*** 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.

WATCH THIS SPACE #1- Egypt’s Senate gave preliminary approval yesterday to a bill regulating the auto industry, including electric vehicles (EVs), according to a report prepared by the Senate’s Industry and Trade Committee. The bill would, if passed, set up a Supreme Council for Vehicle Manufacturing, which will set policies for the automotive sector in general, including EVs, and a fund to provide incentives to the industry. We had the details of the legislation here last week.

SOUND SMART- Egypt’s Senate holds no independent legislative powers, but is an advisory council to the House of Representatives. Senate approval is required to change the constitution, adopt international treaties, or push through bills related to the nation’s “sovereignty and territorial integrity.” Otherwise, its day-to-day purpose is to be a consultative body on social and economic development or any bills referred to it by the presidency.

What that means for the auto industry bill: It’s up for a final vote in the Senate today. The upper house of parliament will then notify Ittihadiya and the speaker of the House of Representatives of its final vote on the bill, along with the changes it thinks may be necessary. The legislation can either then go back to committee in the House or straight to the floor for the series of votes required for it be passed or rejected. If passed by the House, the bill would then be signed into law by the presidency, starting a six-month timer for the ministry that “owns” the bill to write and publish in the Official Gazette the executive regulations that would bring the bill to life.

WATCH THIS SPACE #2- Iraq wants to produce 5 GW of solar energy in 2023, Electricity Minister Adel Karim said during a televised interview on Friday (watch, runtime: 6:02). Iraq has signed solar agreements over the past 18 months with several companies, including UAE’s Masdar and France’s TotalEnergies, lining up total generation capacity of 7.5 GW, he added, saying that more agreements in the renewable energy sector with foreign companies are on the way.

Iraq will likely be reliant on its foreign partners to arrange financing for the projects: The country does not yet have a 2023 budget due to the ongoing political deadlock (more here and here).

MEANWHILE- Amazon is investing EUR 1 bn to upgrade its EV fleet in Europe over the next five years, the online retailer announced on Monday. “Our transportation network is one of the most challenging areas of our business to decarbonize,” said Amazon CEO Andy Jassy. The company wants to increase its European electric delivery fleet from its current 3k to 10k by 2025. It also wants to roll out 1.5k electric heavy goods vehicles (eHGVs) in Europe “in the coming years.”

Amazon wants to power its own fleet, too: More delivery EVs means more demand for charging stations, driving the retailer to build “hundreds of specialized fast chargers across its European facilities” for eHGVs, the retailer added. By 2025, 100% of Amazon’s operations should be powered by renewable energy. The company says it fulfilled 85% of its energy needs through renewables last year.

AND- The world’s largest clean hydrogen fund reaches EUR 2 bn financial close: Private equity outfit Hy24 reached close on its EUR 2 bn clean hydrogen fund yesterday — the world’s largest, the company said in a statement. Investors in the fund include TotalEnergies, Baker Hughes, Airbus, AXA, and Crédit Agricole Assurances. Hy24 — a joint venture between asset manager FiveT and private equity firm Ardian — also said it plans to raise EUR 20 bn over the next six years to scale up clean hydrogen value chains.

***
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.

***

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.