TODAY: UAE’s Masdar acquires a 50% stake in California solar plant
Good morning, ladies and gents. Thursday has finally rolled back around as we slide into the weekend — but first we have a few climate updates from the UAE and KSA.
A quick programming note: Enterprise Climate will be taking a publication holiday on Monday in observance of the Egyptian national holiday of Sham El Nessim. We’ll be back in your inboxes on Tuesday morning at our regularly scheduled time.
THE BIG CLIMATE STORY- UAE renewables giant Masdar has acquired a 50% share in EDF Renewables North America’s 128 MW Big Beau solar plant in California. Masdar and EDF inked an agreement to jointly co-develop eight US-based renewables plants that would yield a total of 1.6 GW in 2020. Closer to home, two US companies inked a joint venture agreement to establish a hydrogen fuel cell products assembly plant in Saudi Arabia.
^^ We have the details on these stories and more in the news well, below.
THE BIG CLIMATE STORY OUTSIDE THE REGION- US proposes its toughest tailpipe emissions standards yet: The US Environmental Protection Agency unveiled yesterday hardened tailpipe emissions regulations on 2027 car models through 2032 in a move it says could have EVs comprise 60% of total domestic car sales by 2030, and 67% by 2032. If passed, the sweeping standards would be the country’s most severe vehicular carbon slashing plan, requiring annual emissions cuts of 13% as well as a 56% push down in estimated fleet average emissions above previously announced 2026 requirements, effectively forcing automakers to transition to EVs to meet the new requirements.
The story got widespread coverage in the international press: Bloomberg | Financial Times | Reuters | Associated Press | CNN | Wall Street Journal | Washington Post | New York Times
ICYMI- EnterpriseAM took a look at where progress stands on Egypt’s 4.8 GW Dabaa nuclear power plant, the first ever nuclear project in the country.
OVER IN COPLAND- IMF, UN, and COP28 president-designate discuss pushing pace of climate action: IMF Managing Director Kristalina Georgieva, UN Special Envoy for Climate Action Mark Carney, and COP28 President-Designate Sultan Al Jaber discussed yesterday the necessity of scaling up climate finance to unlock tns of USD to help meet climate goals, according to a joint statement. At a roundtable discussion in Washington, the three agreed on the importance of making the investment climate more conducive to climate finance while identifying specific obstacles that hinder private sector climate finance. They also agreed on “using innovative financing instruments to scale up private investment in emerging and developing economies,” according to the statement.
WATCH THIS SPACE #1- Taqa is getting its ducks in a row for green finance: The UAE’s state-owned Abu Dhabi National Energy Company (Taqa) has launched a new Green Finance Framework to issue green bonds, sukuk, loans, and other debt instruments under the company’s long-term net-zero goal, it said in a tweet. Proceeds from the issuances will be allocated to eligible green projects, including renewable energy, energy efficiency, sustainable water and wastewater management, clean transportation, and terrestrial and aquatic biodiversity, according to a statement picked up by Wam. The framework has received backing from Citi, Standard Chartered Bank, MUFG, and HSBC as joint sustainability structuring banks alongside First Abu Dhabi Bank (FAB) as a sustainability finance framework advisor.
We knew this was coming: The announcement comes months after Taqa CEO Jasim Husain told Bloomberg in February that his company plans to issue “several hundred mn USD” in green bonds in 2023 for specific projects.
REMEMBER– Interest in these debt instruments have been on the rise in the region in recent months ahead of COP28 in the UAE. Sources told Reuters last week that the UAE federal government, Abu Dhabi and its sovereign wealth fund Mubadala are looking into issuing green bonds. Adnoc is also considering putting its bond plans back on the table and Masdar looking into issuances this year, according to the business newswire. Saudi Electricity Co raised USD 2 bn through USD-denominated green and conventional sukuk this month, while Saudi Arabia’s Al Rajhi Bank also raised USD 1 bn from its five-year USD-denominated sustainable sukuk issuance the same week. Back in February, KSA’s sovereign wealth fund the Public Investment Fund (PIF) sold USD 5.5 bn of green bonds in its second issuance of the debt instruments.
WATCH THIS SPACE #2- A sudden change of heart? G7 climate ministers have backtracked and softened on previous language anticipating growing future demand for LNG, Reuters reports, citing the latest G7 draft communique it has seen. The latest draft document ahead of the ministerial meeting on Saturday in Japan now suggests “considerable uncertainty for future demand of natural gas and LNG and consequently there are risks of supply and demand gap to be addressed.” The draft also stresses the necessity of LNG and gas investments to help "bridge the gap” while still maintaining climate objectives and commitments. A previous draft of the document urged "necessary upstream investments in LNG and natural gas" on the back of the energy crunch from the Russia-Ukraine crisis, anticipating demand for natgas will increase.
WATCH THIS SPACE #3- Carbon emissions from the global power sector may have peaked in 2022, according to a new report by climate think tank Ember. An increase in solar and wind energy deployments tamped carbon output last year, and the continued building of renewable energy installations this year could see carbon output from fossil fuel-generated electricity decline 0.3% in 2023. In 2022, solar and wind energy assets generated some 12% of the world’s electricity supply, up from 10% in 2021. Ember’s Global Electricity Review studied the power sectors of 78 countries representing 93% of the world’s collective energy demands, and found that renewables and other clean energy sources comprised 39% of the total global power output last year, with solar and wind’s share rising y-o-y by 24% and 17%, respectively. The hike in solar and wind capacity met nearly 80% of the increase in electricity demand in 2022, Ember finds, adding that had the uptick in demand been sourced from fossil fuels, emissions from the power sector would have been 20% higher in 2022.
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CIRCLE YOUR CALENDAR-
Japan will host The G7 Ministers’ Meeting on Climate, Energy, and Environment on Saturday, 15 April in Sapporo. The two-day event will see cabinet members from G7 member states discuss solutions for the global power crunch triggered by the Russia-Ukraine war, explore pathways to transition the global economy toward 100% clean energy, further negotiations on the UN’s plastic pollution treaty, as well as the Kunming-Montreal Global
Biodiversity Framework, and devise a roadmap for strengthening climate resilience for climate-vulnerable countries.
The UAE is hosting the International Conference on Green Energy and Environmental Technology (ICGEET) on 18 and 19 April in Dubai. The event will bring together stakeholders from academia, the healthcare industry, and the private sector to discuss energy conservation among other topics.
Germany will host the first COP27 transitional committee workshop from Saturday, 29 April to Sunday, 30 April in Bonn. The workshop will address climate-driven loss and damage impacts, will spotlight the findings of a report prepared by the UN on current funding arrangements for climate mitigation efforts, and bring together a host of international financial institutions to discuss pathways to upping funding capacity for climate-induced loss and damage.
Turkey is hosting the International 100% Renewable Energy Conference from 4-6 May in Istanbul. The event will bring together experts to discuss the integration of renewables, renewable energy technologies and applications, and the Roadmap to 2050.
The UAE is hosting the UAE Climate Tech forum on 10 and 11 May in Abu Dhabi. The event will gather over 1k policymakers, CEOs, experts, and investors to discuss collaboration on innovative technologies and economic opportunities in advancing decarbonization across all sectors.
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.