Good morning, lovely people, and welcome to the end of a fairly quiet week on the climate front.

THE BIG CLIMATE STORY- Austrian utilities company Verbund has inked an agreement with UAE’s Masdar to co-develop green hydrogen production in a bid to line up more exports of the green fuel for Central Europe. This comes a few short weeks after signing a similar agreement with KSA’s Acwa Power. We have chapter and verse on this story in the news well below.

THE BIG CLIMATE STORY OUTSIDE THE REGION- France and Germany go to Washington, as the endless EU-US debate over green subsidies continues: Meetings this week between France and Germany’s economy ministers and US Treasury Secretary Janet Yellen, Commerce Secretary Gina Raimondo and White House officials have yielded few concrete results, but a general willingness to engage over EU concerns about US President Joe Biden’s Inflation Reduction Act (IRA) and its impact on Europe’s green energy transition.

Few signs of concrete progress: Both sides agreed on the need for transparency about competing EU-US green subsidies, noted France’s Bruno Le Maire and Germany’s Robert Habeck. A commitment was also made for the US-EU Trade and Technology Council (TTC) to develop shared standards for green products, along with an agreement to look at ways of reducing reliance on China for minerals used in batteries, Habeck said.

But US officials remain non-committal: The US has indicated no major concessions following the meetings, with Raimondo reportedly noting that the IRA is a “key tool” for the US and its most significant climate legislation to date.

The story is attracting widespread coverage: Financial Times | Deutsche Welle | Le Figaro | Bloomberg | Wall Street Journal | Reuters | Politico

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WATCH THIS SPACE #1- Aramco works towards direct air capture tech at ＜USD 100/ ton of CO2 in green fuel production: Saudi Aramco is working on reducing the carbon intensity of green fuels through direct air capture (DAC) technology — with a target of bringing down the cost to below USD 100 per ton of CO2, Arab News quotes the firm’s transport Chief Technologist Amer Amer as saying at the International Association for Energy Economics (IAEE). USD 100/ ton of CO2 is the price at which DAC becomes economically viable, though it currently stands at an estimated two-six times higher. Tech development, regulation, and fiscal incentives or subsidies are all needed to develop greener transport, according to stakeholders speaking at the conference.

WATCH THIS SPACE #2- KSA’s chemical manufacturing company SABIC is sinking USD 1.3 bn into the second stage of its green transition, Arab News quotes VP of Energy Efficiency and Carbon Management Fahad Al-Shereby as saying at the IAEE. The funds will go towards tech innovation for energy efficiency aimed at reducing costs and advancing decarbonization, he added. SABIC saw a 10% decrease in carbon emissions during the USD 1 bn first phase of its energy transition, Al-Shereby said.

WATCH THIS SPACE #3– Egypt pitches projects to the EIB: Egypt’s Environment Minister Yasmine Fouad met with European Investment Bank Director Lionel Rapaille to explore potential climate-centered projects for the country’s private sector, according to a cabinet statement. Fouad and Raphael discussed waste-to-energy, waste management, and environmental and marine conservation projects and potential pathways for developing the local banking industry’s sustainable financing capacity.

WATCH THIS SPACE #4- The shift to EVs can’t meet the emissions threshold laid out in the Paris Agreement: Auto manufacturers are likely to create emissions surpassing the Paris-agreed 1.5°C global warming threshold by 2035, a report by EV automakers Rivian, Polestar, and consulting firm Kearney finds. The carbon emissions generated by passenger vehicles globally amounts to some 6 gigatons annually when accounting for total life cycle CO2 emissions leading to a total wallet of some 80 gigatons of CO2 equivalent by 2050, the report notes, with carmakers almost doubling warming levels by the same year relative to the current Paris-agreed target.

How did they come to that conclusion? The three companies collaborated on the development of a simulation test measuring emissions generated by the automobile industry against projections of CO2 levels that would lead to the overshoot of the 1.5°C warming threshold, and found the automakers would have to charge EVs entirely using renewables by 2033 and use clean energy across their operations — including in manufacturing and charging infrastructure production — to maintain warming levels below the Paris climate target.

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COME TO OUR NEXT ENTERPRISE FORUM-

We’re excited to unveil our next C-level event: The Enterprise Exports & FDI Forum, where we will take a deep dive into two of the most critical topics affecting our community.

Exports and foreign direct investment (FDI) have never been more important to our economy — or our businesses — than in the wake of the float of the EGP. We think we have a once-in-a-lifetime chance to build an export-led economy that makes us a magnet for FDI and all the benefits that will come with it for our nation.

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CIRCLE YOUR CALENDAR-

Egypt will host the Egypt Petroleum Show from Monday, 13 February to Wednesday 15 February in Cairo. Under the theme “Supporting Sustainable Global Energy Supply and Demand,” the event will host talks on sustainable development, how climate change impacts oil and gas production, and decarbonization for net zero targets.

The UAE will host the International Conference on Effective Nuclear and Radiation Regulatory Systems from Monday, 13 February to 26 February in Abu Dhabi. This conference will host discussions on improving the effectiveness of nuclear and radiation regulatory systems and building resilience and agility in response to emerging challenges.

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.

The first MENA Solar Conference is accepting applications from published researchers specialized in PV technology until 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.