TODAY: Jordan’s gearing up for its maiden green bond issuance
Good morning, friends, and welcome to a stacked issue with regional updates across the board. We have a bit of green finance, renewable energy projects, and an interesting read on the intersection of people’s vaping habits (read: addictions?) and the production of EV batteries. Let’s jump right in.
THE BIG CLIMATE STORY- The International Finance Corporation is set to invest USD 50 mn in Jordan Kuwait Bank’s planned five-year green bond issuance with the proceeds of the sale going towards the development of energy-efficient buildings, renewables plants, and EV projects in the country.
THE BIG CLIMATE STORY OUTSIDE THE REGION- A transatlantic bargain on minerals: The EU and US will begin negotiations on the supply of critical minerals essential for EV manufacturing, after EU Commission President Ursula von der Leyen and US President Joe Biden agreed to the talks in a meeting at the White House on Friday. The allies are looking to reach a preliminary limited trade agreement that would see minerals extracted in the EU count toward EV tax credits under Biden’s landmark Inflation Reduction Act as both sides of the Atlantic look to wean themselves off Chinese dependency in the energy transition. The recent diplomatic developments come on the heels of a months-long climate spat over concerns the climate bill would spur clean energy investments across the Atlantic.
The story got widespread coverage over the weekend: Reuters | Bloomberg | The Financial Times | The Washington Post | The New York Times
ALSO- UK pension funds Borders to Coast and Britain’s Universities Superannuation Scheme — two of Britain’s largest pension schemes, overseeing a combined c. GBP 130 bn of assets — will vote against the reappointment of several incumbent directors at energy giants BP and Shell at annual shareholder meetings unless they commit to stronger carbon reduction targets. BP and Shell have come under fire for backtracking on commitments to reduce oil and gas outputs in line with their 2050 carbon neutrality targets.
The story is also getting ink from Reuters, Bloomberg, and the Financial Times.
HAPPENING TODAY- The Abu Dhabi-Japan Economic Council is kicking off today in Tokyo, advancing bilateral cooperation between the UAE and Japan in a number of areas including renewable energy. Adnoc and Masdar will be presenting avenues for cooperation in the renewable energy sector.
WATCH THIS SPACE #1- Egypt, Greece move closer to firming up feasibility studies on interconnection project: Egypt and Greece are in talks with 10 international consultants to conduct a feasibility study on their EUR 3.5 bn 3 GW subsea interconnector (GREGY), Asharq Business reports, citing sources familiar with the matter. French electric utility player EDF, Canada’s Elie Grid, Norwegian DNV, and German firms CESI and Lahmeyer are among the potential firms, along with Greek, Belgian, Chinese, and US consultants. Both countries have been looking to appoint a third party to complete the study on the powerline since January.
WATCH THIS SPACE #2- Siemens Energy eyes renewables projects in KSA and Iraq: Siemens is looking to participate in upcoming Saudi wind energy tenders totalling 7 GW as part of its 2050 strategy, Al Arabiya reports, quoting company board member Karim Amin. Financial details, a timeline or specific projects targeted were not disclosed. The company is also looking to invest USD 450 mn in Iraq’s flare gas-to-energy sector, with the aim of using the captured gas to convert it into 15 GW of clean energy.
WATCH THIS SPACE #3- UAE restricts VW EV imports: The UAE’s Economy Ministry restricted the import of Volkswagen electric vehicle models from unauthorized dealerships due to concern over manufacturing specs failing to take the UAE’s climate conditions into consideration, Gulf News reported. Volkswagen and Al Nabooda Automobiles — the only official dealer in Dubai and the Northern Emirates — published a statement in support of the ministry’s decision, saying the move ensures that all VW cars “are built and tested to meet UAE market requirements.”
WATCH THIS SPACE #4- KSA mulls mining prospects in Serbia: Serbian Energy Minister Dubravka Đedović presented Serbia’s long-term mining and energy strategies to a delegation from the Saudi Fund for Development, Balkan News Energy reported on Friday. Đedović emphasized that the country’s energy sector is about to enter an intensive investment cycle and is drafting a national energy and climate strategy, with the first five-year plan expected to require “investments of several bn EUR.”
|
***
YOU’RE READING ENTERPRISE CLIMATE, the essential MENA publication for senior execs who care about the world’s most important industry. We’re out Monday through Thursday at 4am Cairo / 5am Riyadh / 6am UAE.
Were you forwarded this email? Get your own subscription without charge here or reach out to us on climate@enterprisemea.com with comments, suggestions and story tips.
***
THE DANGER ZONE- Droughts threaten North Africa’s water and food security: An acute drop in precipitation levels owing to climate-induced droughts and warm winters is affecting soil moisture and river flows in the majority of cereal-growing centers in Morocco, Algeria, and Tunisia, with wheat yield potentials expected to plunge between 15-24% compared to the last five-year average in the three countries, according to Global Drought Observatory (GDO) forecasts. Barley potentials are also expected to drop between 10-30% below 2017-2022 averages in the region, GDO notes. GDO warns of water stress in Morocco during the coming months as precipitation continues to decrease water reservoir filling rates.
Algeria is taking urgent measures: Algeria — which saw output drop below-average volumes across all its major production areas — approved a water rationing strategy in 2021 in a bid to shore up its water supplies. More recently, the country, which in January reactivated its Water Police force to optimize water management, announced it would take “urgent measures” in the face of climate-driven water scarcity, including the establishment of new desalination plants and groundwater wells to alleviate its water stress.
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-
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.