TODAY: Adnoc and OCP earmark bns in a decarbonization push + Saudi Arabia on track to recycle 40k tons of e-waste by next year
Good morning, wonderful people. The world has woken up from the lull of the past few weeks and we have a slew of regional updates for you. Let’s dive right in.
THE BIG CLIMATE STORY- The UAE’s Adnoc and Morocco’s OCP are investing USD bns in decarbonization efforts in the next few years, pivoting to renewable energy and carbon capture. Saudi Arabia is also set to get e-waste recycling facilities off the back of an agreement between recycling company Tadweeer and KSA-based firms Tebrak Trading & Contracting Company and Mounes Mohamed Alshayeb for Civil Construction.
^^ We have chapter and verse on this story and more in the news well, below.
THE BIG CLIMATE STORY OUTSIDE THE REGION– Believe it or not, there’s positive climate news today. Amid quite a lot of climate-focused news, two main stories are dominating international press coverage. The ozone layer is on track to fully recover by 2066 if current policies remain in place, with a 1989 mass phase-out of ozone-depleting substances having helped consistently reduce the size of the ozone hole, the UN announced yesterday, citing a panel of experts.
The story got ink in several international outlets: New York Times | Deutsche Welle | Washington Post | Wall Street Journal | Guardian
Meanwhile, international donors yesterday committed USD 9-10 bn to support Pakistan’s recovery from last year’s devastating climate change-induced floods. The Islamic Development Bank made a whopping USD 4.2 bn contribution, the World Bank committed USD 2 bn, and Saudi Arabia USD 1 bn, Reuters reports. The EU, China, France and the US were also among the list of donors, according to Pakistan’s information minister. The funds exceed the USD 8 bn over three years sought by Prime Minister Shehbaz Sharif, Bloomberg notes, in what’s being widely hailed as a rare example of donor pledges exceeding objectives.
WATCH THIS SPACE #1- Sustainability-linked bonds may bounce back to 2021 levels this year: Corporate bonds with a focus on advancing ESG objectives are set to grow by 30% y-o-y accounting for over USD 460 bn globally, Barclays said in a research note picked up by Reuters. ESG bonds raised USD 362 bn in 2022 — down from USD 461 bn — a 22% drop y-o-y driven by higher interest rates, the UK-headquartered bank said in the note. GCC green and sustainable bond and sukuk issuances saw massive growth in volume and value last year in spite of the global downturn, however, with some USD 8.5 bn raised from 15 issuances — a sizable increase from the USD 605 mn raised from six issuances in 2021.
But there is a caveat: We’ve mentioned previously that a majority of sustainability-linked bonds currently on the market in Europe and the West are tied to weak, irrelevant or already-achieved climate targets, according to Bloomberg analysis. 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 meaning companies get cheaper financing and a green reputation without really holding up their end of the bargain.
WATCH THIS SPACE #2- US-backed First Movers Coalition doubles number of members in a year: The First Movers Coalition (FMC) — a global initiative launched at COP26 that aims to use company purchasing power to decarbonize seven “hard to abate” industrial sectors — grew its number of corporate members to 67 from 34 in the space of a year and collectively made USD 12 bn worth of purchasing agreements, Reuters recently noted US climate envoy John Kerry having announced at COP27. Purchasing agreements targeted sectors including steel, aluminum, shipping, trucking, and aviation, which currently account for some 30% of global emissions, the news outlet notes.
WATCH THIS SPACE #3- Sony and Honda are releasing a new EV: Sony and Honda’s EV prototype Afeela was revealed in Las Vegas last week, according to a statement. The vehicle will be outfitted with the Snapdragon Digital Chassis developed by Qualcomm Technologies for software-based vehicles to have a more intelligent experience. The new vehicle is projected to hit the North American market by the beginning of 2026, Reuters reports.
HAPPENING TODAY- Saudi Arabia is kicking off The Future Minerals Forum today at the King Abdul Aziz International Conference Center in Riyadh. 200 industry leaders and over 50 ministers will discuss decarbonizing mining projects globally and how to drive investments to the industry.
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CIRCLE YOUR CALENDAR-
UAE renewable energy firm Masdar will host Abu Dhabi Sustainability Week from Saturday, 14 January to Saturday, 21 January. The event will gather eight presidents and prime ministers and 30k participants in a series of conferences and summits including the Atlantic Council’s Global Energy Forum, the World Future Energy Summit, Masdar’s Green Hydrogen Summit, The International Renewable Energy Agency’s Youth Forum, and the Abu Dhabi Sustainable Finance Forum.
The UAE is hosting the Atlantic Council’s Global Energy Forum on Saturday, 14 January and Sunday, 15 January in Abu Dhabi. The forum will discuss the ongoing global energy crisis and its impact on the green transition, energy security, and decarbonization.
Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.
Editor’s Note: This story and the headline atop the day’s issue were amended on 10 January 2023 to correct the name of the country in which Adnoc is headquartered. As the story below correctly notes, it is the UAE, not Saudi Arabia.