TODAY: Masdar and Romania’s Hidroelectrica partner on renewables + Korea Western Power and EDF Renewables will co-develop Oman’s Manah 1 solar plant
Did you miss us? Enterprise Climate took a brief publication holiday last Thursday, which is why we were missing from your inbox, but we’re back with a packed issue this morning to make up for it.
THE BIG CLIMATE STORY- UAE’s Masdar signed a joint cooperation agreement with Romanian state-owned utilities firm Hidroelectrica to deploy 2 GW worth of offshore wind energy and floating solar energy projects, and Oman’s Power and Water Procurement Company has tapped Korea Western Power and EDF Renewables to co-develop the 500 MW Manah 1 solar plant. We have all the details on these stories and more in the news well, below.
HAPPENING TODAY- Egypt is kicking off the first meeting of the COP27 Transitional Committee from today to Wednesday, 29 March in Luxor. The event will focus on adaptation and loss and damage. The Transitional Committee’s work will include presiding over COP27’s landmark loss and damage fund created to support climate-vulnerable countries, which will take into consideration the landscape of institutions responding to loss and damage.
SPEAKING OF COP- COP28 could see specific targets set for global renewable energy capacity generation and the fossil fuel phase out, Denmark's Climate Minister Dan Jørgensen said at the Copenhagen Climate Ministerial last week, according to Politico. The suggested target to meet the world's climate goals currently stands at 1 TW of annual growth, International Renewable Energy Agency Director Francesco La Camera said during the conference. Jørgensen called for more ambitious nationally determined contributions (NDCs) — climate pledges set by countries — to reduce national emissions, and highlighted the need to increase adaptation finance, speed up the implementation of the loss and damage fund, and the mobilization of climate finance, according to The National. On the first day of the conference COP28 President-Designate Sultan Al Jaber called for speeding up climate mitigation, adaptation, and finance.
THE BIG CLIMATE STORY OUTSIDE THE REGION- Berliners voted in a referendum yesterday to make the German capital carbon neutral by 2030. The results could determine whether the German capital brings its net-zero targets forward by 15 years to 2030, a decade and a half earlier than the national target. Climate activists have already secured some 260k signatures in support of the proposal, but 25% of Berlin’s 2.4 mn eligible voters would have to vote in favor of the legally-binding referendum for the amendment to pass. Critics warn a binding target could strip the government of its ability to maneuver if the climate goal is not met, leading to disappointment.
The story got some coverage in the press over the weekend: AP News | Reuters | Washington Post | Deutsche Welle
WATCH THIS SPACE #1- Tunisia plans to become carbon neutral by 2050: Tunisia’s Prime Minister Najla Boden Ramad unveiled the country's energy strategy for 2035, which sets a target to decarbonize the national economy by 2050, according to a cabinet statement. The strategy also includes the country’s green hydrogen production roadmap. Tunisia has unconditionally committed to pushing down its emissions from 2010 levels by 27% by 2030, and has set a conditional target to slash its emissions by 45% compared to 2010 by the end of the decade if it receives additional international support, according to the UNDP.
CLIMATE DIPLOMACY- The EU wants to invest in Tunisia in a number of areas including renewables and wastewater management, Tunis Africa Press Agency reported last week. The EU is prepared to support the north African country through its negotiations with the IMF to help restore a promising investment climate, Director General for the EU’s neighborhood policy and enlargement negotiations Gert Jan Koopman said during a meeting with Tunisia’s Economy and Planning Minister Samir Said. Investments in Tunisia can take several forms including Foreign Direct investments (FDI) and Private-Public Partnerships (PPPs) and private capital has the potential to boost bilateral collaboration.
WATCH THIS SPACE #2- US pushes for first steps in World Bank reform to prioritize climate finance by April: Germany’s acting governor to the World Bank Svenja Schulze and US Treasury Secretary Janet Yellen were in talks last week hoping to overhaul the World Bank’s financing structure ahead of COP28 to incorporate climate finance, pandemic control, and poverty reduction as top priorities, the Financial Times reports. Yellen and German allies are keen to see a solid “schedule for reform” of the World Bank as early as April, as the lender faces pressure for failing to address climate change. Earlier this month, the lender updated its regulations to align new financing with targets of the Paris agreement, but concern over the bank’s funding of fossil fuel drilling projects remains a sticking point, the news outlet notes.
REMEMBER- The bank wants to increase climate-focused lending capacity: The World Bank wants to remodel its funding programs to expand its lending capacity for climate change through planned capital increases and new lending tools. The shift signals a radical change from the bank’s model of working from project and country-specific loans. WB management will broach the topic with shareholders in April, discussing specific proposals to change its mission, operating model, and financial capacity as it looks to ready a document for approval by the joint World Bank and International Monetary Fund Development Committee by October.
WATCH THIS SPACE #3- Some aircrafts may receive a green badge under new EU rules: Certain aircrafts may be eligible to receive the EU’s green label if they meet certain criteria including zero emissions or meeting outlined CO2 limits, Bloomberg reported citing a draft report by the EU Commission. According to the document, passenger aircrafts would need to use a minimum 10% share of sustainable aviation fuels starting 2030, and will be required to increase by 2% annually in order to qualify for the green label. Bloomberg expects that the addition of the aviation industry onto the list of economic activities that contribute toward the bloc’s goal of climate neutrality — called EU Taxonomy — will spark controversy amongst climate activists who have previously rejected the inclusion of heavily polluting industries such as gas and nuclear power. According to the Commission, adding such activities contributes to incentivising the private sector to speed up its green transition.
WATCH THIS SPACE #4- Is the Cypriot electricity grid ready for the influx of renewable power coming its way? Cyprus lacks the power storage capacity to accommodate the inflow of renewable power it will soon receive (partially from Egypt) through the USD 4 bn 2 GW EuroAfrica Interconnector and the 2 GW EuroAsia Interconnector with Greece as network overloads causing power outages in the country earlier this month, according to the Cyprus News Agency. The Transmission System Operator Cyprus (TSOC) — one of the country’s utility providers — noted to parliament that when energy generation peaks to 500 MW, it is forced to turn off 85 MW from its solar energy plants for lack of adequate power storage capacity. Power generation cuts are expected to push down energy production from the country’s PV units by 6-8% in 2023, TSOC executive director Stavros Stavrinos said, according to the news agency.
WATCH THIS SPACE #5- Saudi Aramco markets its energy transition strategy to Chinese investors at China Development Forum: Saudi Aramco CEO Amin Nasser highlighted how the company’s low-carbon strategies — including reducing increased carbon capture storage and increasing low carbon energy and renewables to their portfolio — can help strengthen China’s long-term energy security and zero-emission goals, according to a company statement. Nasser also emphasized that China’s venture capital space “offers significant investment opportunities to stimulate the technology development and innovation required,” pointing to a letter of intent signed this month between China’s Geely and France’s Renault to establish a JV specialized in developing more efficient gasoline engines and hybrid automotive systems.
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