TODAY: South Korea’s official export credit agency inks loan agreement with Aramco
Good morning, nice people. We’re only one day away from the weekend and the regional news pace seems to be picking up pace.
THE BIG CLIMATE STORY- Saudi energy giant Saudi Aramco finalized a USD 6 bn framework agreement with South Korea’s official export credit agency the Export-Import Bank of Korea to support development projects in MENA with USD 1 bn of the financing earmarked for green hydrogen and renewables projects. We have all the details on this story and more in the news well, below.
HAPPENING TODAY- The Earthna Summit is kicking off today in Doha and will carry on into tomorrow. The event will bring together industry leaders and policymakers to explore tailored solutions for the energy transition in hot climates. Over in London, The Saudi British Joint Business Council is bringing together over 150 innovators to discuss and present clean technological solutions in sectors ranging from renewable energies, to waste management, battery storage, carbon capture, and water conservation.
THE BIG CLIMATE STORY OUTSIDE THE REGION- It’s relatively quiet on the global climate news front, but Canada’s issuance of a climate-focused disclosure rulebook pinged on the headlines yesterday. Canada’s Office of the Superintendent of Financial Institutions issued a set of guidelines mandating regulated companies in the country to disclose climate risks at least once a year. Banks and ins. companies will have to comply with the new rulebook by 2024, using the guidelines to assess clients’ climate risks in their credit-granting procedures. Canadian SMEs will be granted an additional year to adhere to the new guidelines. The story was picked up by Reuters and Bloomberg.
OVER IN COP LAND- The world needs to slash emissions by 7% annually to keep the ambitious warming limit of 1.5°C alive, Wam quotes COP28 president-designate Sultan Al Jaber as saying during the CERAWeek energy conference. Al Jaber also stressed the vital role that oil and gas industry play in resolving the climate crisis, urging the industry to “up its game.” “Energy leaders have the knowledge, experience, expertise and the resources needed to address the dual challenge of driving sustainable progress while holding back emissions,” he said. “Alongside all industries, the oil and gas sector needs to up its game, do more and do it faster.”
ALSO FROM THE UAE– THE UAE Net Zero 2050 Charter was signed this week, Wam reports, paving the way for further efforts to push on governmental climate action in the country. The charter would see the Gulf country accelerate the pace by local governments for progressive and durable solutions to slash carbon emissions across all fields, said Abu Dhabi Executive Council Secretary-General Saif Saeed Ghobash.
WATCH THIS SPACE #1- EDF Renewables plans to participate in upcoming UAE renewables tenders as it looks to double its clean energy capacity to 60 GW by 2030, the company’s CEO told The National. EDF Renewables — a wholly owned subsidiary of French utility EDF Group — has a 20% stake in the 2 GW Al Dhafra Solar project in Abu Dhabi set to become operational in 2Q 2023, and was part of a Masdar-led consortium developing the 800 MW third phase of the 5 GW Mohammed Bin Rashid Al Maktoum Solar Park in Dubai. It is also co-leading alongside Masdar a consortium constructing the 400 MW Dumat Al Jandal wind park in Saudi Arabia, which was due to be completed in 2022. The specific tenders the company is eyeing were not disclosed.
WATCH THIS SPACE #2- Rivian planning USD 1.3 bn green bond sale: Abdul Latif Jameel-backed EV startup Rivian Automotive is planning to sell “green” bonds totalling USD 1.3 bn amid liquidity woes, Reuters reports referencing a company statement. The company will offer its initial investors up to USD 200 mn of the bonds for settlement 13 days following the securities’ issuance date. Rivian’s green bond maturity date is slated for March 2029, and shareholders will have the option to convert their bonds into company shares or opt for cash payouts. The US-based automaker will use the proceeds to launch its R2 vehicle family, a company spokesperson told the newswire.
WATCH THIS SPACE #3- The UAE says it isn’t leaving OPEC: The UAE government debunked a Friday report from The Wall Street Journal saying the country plans to exit the OPEC oil alliance to seek higher independent production capacities, CNBC reports. The WSJ news sent Brent crude prices tumbling 2.8%, leading anonymous government officials to confirm the country would remain in the oil cartel for the remainder of 2023.
Background: Disputes over oil production outputs emerged in 2021, with the UAE and Saudi Arabia entering a two-week public dispute over a Saudi-led strategy to lower OPEC production in response to pandemic-driven demand disruptions. The UAE used its veto to postpone an OPEC meeting until it secured a concession to hike its production baseline, which ultimately culminated in a Saudi-UAE compromise that saw the Emirates increase production to 3.5 mn bbl per day, 300k barrels below the 3.8 mn target it had demanded, Bloomberg reported.
WATCH THIS SPACE #4- Biden’s landmark green bill is spurring Big Oil to embrace low carbon projects: Having aggressively lobbied against the Biden administration’s USD 369 bn drive to paint the US economy green, oil and gas majors are now looking to benefit from its incentives by plowing money into low carbon projects, The Financial Times reports. Companies including ExxonMobil, Continental Resources, Talos Energy, and Phillips 66 are investing in carbon capture tech, converting fossil fuel refineries into biofuel plants, and setting up green hydrogen projects thanks to the Inflation Reduction Act’s attractive green subsidies. “This is not a game for start-ups. These are large, world-scale projects that require the kind of project expertise that we have, require the kind of size and balance sheet capacity that we have,” ExxonMobil head Darren Woods told investors in February.
A step in the right direction — or blatant greenwashing? Climate activists are infuriated by the provisions that subsidize technologies such as carbon capture, saying that it's a scheme by big oil companies to keep pumping fossil fuels. But US Energy secretary Jennifer Granholm said the incentives would help fossil fuel firms reinvent themselves as “more diverse energy and carbon management companies.”
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CLIMATE DIPLOMACY- Egypt and Australia discuss green cooperation: Biodiversity, ecotourism, waste management, and plastic pollution reduction were the focus of talks at a meeting in Cairo between Egyptian Environment Minister Yasmine Fouad and Australian Ambassador Axel Wabenhorst, according to a statement. Wabenhorst noted increased investment interest by Australian companies in marine reserves management, and ecotourism, the statement said. Wabenhorst also sat with Egyptian Oil Minister Tarek El Molla in January to discuss cooperation in mineral extraction and green energy, including hydrogen.
REFRESHER– Australia’s interest in MENA green investments is growing: Australia’s Fortescue signed an MoU with Egypt’s sovereign wealth fund to begin conducting feasibility studies on its planned USD 10 bn 9.2 GW green hydrogen project last August. In December, India’s Adani signed an agreement with Australia’s Cavendish Renewable Technology for electrolyzer technologies as part of a plan to develop hydrogen tech to meet demands in MENA. More recently, Australian-headquartered and ASX-listed mining exploration and development company European Lithium signed a non-binding MoU with Saudi Arabia’s Obeikan Investment Group in January to establish a hydroxide plant to process lithium in Saudi Arabia. Also in January, Saudi Arabia’s Royal Commission for Jubail and Yanbu signed a lease agreement for 1.27 mn sqm of industrial land with Australia’s battery materials company EV Metals to set up a facility to produce key chemicals for EV batteries.
Egypt wants to expand cooperation with the UK on renewables: Egypt’s Electricity Minister Mohamed Shaker met with Egypt’s British ambassador Gareth Bayley and a delegation of UK companies to explore avenues of cooperation in Egypt's renewables sector this week, a cabinet statement. That same day, a delegation of the British Trade Mission including green hydrogen-producing firms paid a visit to Egypt’s Suez Canal Economic Zone (SCZone) to discuss potential incentives for investors looking to produce green fuels in the economic zone, SCZone noted in a separate statement.
COME TO OUR NEXT ENTERPRISE FORUM-
We are delighted to share with you that the Enterprise Exports & FDI Forum will be taking place on 15 May at the Four Seasons Hotel at Nile Plaza in Cairo.
DO YOU WANT TO ATTEND? The first wave of invites is going out soon. If you’re a C-suite exec, exporter, investor, official, banker, or someone who should be part of the conversation, please click here to request a spot at this exclusive event.
What’s the Enterprise Exports & FDI Forum? It is the latest in our series of must-attend, invitation-only gatherings for C-suite-level business leaders. The Enterprise Exports & FDI Forum will discuss the critical topics of exports and foreign direct investment (FDI) in Egypt.
We will be taking an in-depth look into some of the most vital industry topics, including:
- How to effectively break into new export markets
- How to leverage domestic trends in order to create export opportunities
- What foreign investors are looking for
- What the government's role should be
Why now? Exports and foreign direct investment (FDI) have never been more important to Egypt’s economy — or 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 Egypt a magnet for FDI, and all the benefits that will come with it.
Think of the Enterprise Exports & FDI Forum as a hands-on lab for how to turn the devaluation of the EGP into something that will turbocharge your company and our economy.
WANT TO SHARE YOUR STORY ON STAGE? Drop a note to Patrick here and let’s talk.
WANT TO BECOME A COMMERCIAL PARTNER? Ping a note to Moustafa, our head of commercial, here.
CIRCLE YOUR CALENDAR-
Oman will host Oman Sustainability Week from 12-16 March in Muscat. The event aims to create discourse amongst leaders to drive change, and movement within businesses and communities towards adopting a sustainable lifestyle.
The UAE will host the Arab Aviation Summit from 14-16 March in Ras al Khaimah. The event will bring together global stakeholders to address sustainability in the aviation industry among other topics.
Germany will host The Infrastructure Investor Global Summit from 20-24 March in Berlin. The four-day event will gather industry leaders from the global infrastructure sector to map out a course for the industry to upscale its ESG-focused operations and investments. 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.