TODAY: Egypt’s green SMEs will get a extra boost of funding from EBRD and friends
Good morning, wonderful people. We have a mixed bag of news from the region as we inch closer to the weekend — let’s dive in.
THE BIG CLIMATE STORY- The European Bank for Reconstruction and Development and partners launched the second phase of the Green Economy Financing Facility program in Cairo yesterday, which will provide funds to Egyptian financial institutions for on-lending to private sector companies — especially SMEs — focusing on climate change adaptation and mitigation. We have chapter and verse in the news well below.
And while there isn’t much buzz on climate news outside the region, the embattled Adani Enterprises’ second offering continues to make headlines after the USD 2.5 bn share sale successfully closed yesterday. (ICYMI, you can catch up on our coverage here and here.) The downside? Indian mogul Gautam Adani — previously the third richest man in the world — has dropped eight places on the Bloomberg b’naires index as the value of his conglomerate Adani Group sank by USD 70 bn in the wake of chaos triggered by a damning report from short seller investment firm Hindenburg Research. The story is getting widespread coverage in the international press: Bloomberg | The Financial Times | New York Times | Reuters | Guardian | CNBC
WATCH THIS SPACE #1- Saudi Energy Minister Prince Abdulaziz Al Saud says the kingdom will invest USD 266 bn in “cleaner” energy and distribution infrastructure to export green hydrogen worldwide, Al Arabiya reports. The investment will also go towards creating industrial centers for green steel and aluminum, fertilizers, and other products needed for green hydrogen production, Al Saud added.
KSA isn’t budging on gas production… but wants to lower emissions: Saudi intends to ramp up gas production by 60% and work is underway to extend gas lines by 4k km — but all new energy projects will be developed with carbon capture facilities, Al Saud says. No further details were disclosed on timelines or carbon emissions targets on new projects.
WATCH THIS SPACE #2- Renewables outpaced fossil gas in terms of power generation in the EU for the first time last year, according to a report (pdf) by energy think tank group Ember. Renewable energy accounted for 22% of the EU’s energy mix, compared to 20% for gas. The rise of solar power generation helped save approximately EUR 10 bn in gas expenditures, with Germany being the biggest contributor with 59 TWh followed by Spain at 33 TWh.
Reliance on fossil fuels could drop significantly this year: While EU fossil fuel generation rose 3% y-o-y in 2022, it is predicted to fall by 20% in 2023, according to the report. Solar and wind power plant development will expand on the continent, nuclear plants are coming back online, and hydropower generation will be replenished after droughts, the report expects.
The reason? A record amount of renewable power installations: Renewables installations added 41 GW worth of power generation capacity in 2022 — 47% more than in 2021 — as 20 nations reached their highest solar energy share to date, the report finds. Renewables industry groups say solar and wind power generation is expected to increase by roughly 20% in 2023, it adds.
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CLIMATE DIPLOMACY- US, Egypt further green cooperation: The US and Egypt reaffirmed their partnership on climate cooperation with a commitment to raise USD 50 mn through a public-private partnership to preserve the Red Sea coral reef, US Secretary of State Antony Blinken said at a joint press conference with Egyptian Foreign Minister Sameh Shoukry, according to a press readout. Blinken also indicated a green economy trade mission had recently visited Egypt to explore the possibilities for American companies to compete in Egypt’s renewable energy market.
And Australia is interested in working with Egypt on mining: Mineral extraction and green energy, alongside gas, were the focus of talks at a meeting in Cairo between Egyptian Oil Minister Tarek El Molla and Australian Ambassador Axel Wabenhorst, according to a statement. Wabenhorst noted increased investment interest by Australian companies in mining, hydrogen, and gas, according to a statement by Egypt’s State Information Service.
CIRCLE YOUR CALENDAR-
Egypt will host the CSR Forum from 2-5 March at Somabay, Hurghada. The event aims to further discussions put forth during COP27 and boost private and public sector cooperation on climate action. You can register for the event here.
The Arabia CSR Awards is accepting applications until Friday, 30 June. The awardwinners will be announced during a ceremony on Wednesday, 4 October.
Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.