TODAY: Taqa pricing a new two-tranche green bond + Adnoc partners with Kawasaki on low-carbon hydrogen value chain

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Tuesday, 18 April 2023

TODAY: Taqa pricing a new two-tranche green bond + Adnoc partners with Kawasaki on low-carbon hydrogen value chain

Good morning, wonderful people. We have a busy morning with lots of news emerging from the UAE over the long weekend and a roundup of what happened on the climate front at the G7 meetings in Japan. Let’s jump right in.

THE BIG CLIMATE STORY- The UAE’s Taqa is moving forward with a two-tranche green bond estimated at least USD 500 mn. The issuance will reportedly include a five-year tranche at 120 basis points over US treasuries and a 10-year tranche at around 145 basis points over treasuries. In hydrogen news, Adnoc signed an agreement with Japanese manufacturing giant Kawasaki to explore joint production, liquefaction, and transport mechanisms for low-carbon hydrogen for delivery to international markets.

^^ We have the details on these stories and more in the news well, below.

HAPPENING TODAY- The two-day International Conference on Green Energy and Environmental Technology will kick off in Dubai bringing together stakeholders from academia, the healthcare industry, and the private sector to discuss energy conservation among other topics.

THE BIG CLIMATE STORY OUTSIDE THE REGION- The G7’s ministerial meeting snagged headlines when it wrapped on Sunday, with many focused on the group’s failure to set deadlines for the phase out of coal and other fossil fuels. Two days of discussions in Sapporo saw G7 countries agree to wean themselves off fossil fuels entirely by 2050, but did not see the bloc offer revised deadlines hastening divestment from fossil fuels by 2035 beyond pledges made during last year’s G7 summit. We have all the details on the outcome of climate talks at the meetings in the news well below.

WATCH THIS SPACE #1- Piling pressure on ExxonMobil? Global asset managers Legal & General Investment Management (LGIM) and Christian Brothers Investment Services have partnered up to co-file a shareholder resolution demanding greater climate-related transparency from ExxonMobil, according to a statement. “We believe such level of disclosure is imperative for investors to better evaluate long-term risks and economic viability of the business in a carbon constrained future,” said Michael Marks, head of Investment Stewardship and Responsible Investment Integration at LGIM.

WATCH THIS SPACE #2- Iraq is pushing forward with renewables projects: An unnamed Saudi firm will build a 1 GW solar plant in Iraq’s Al Najaf city, the country’s Electricity Minister Ziad Ali Fadel told the Iraqi News Agency on Saturday. The ministry has already allocated land for the project, Fadel said. Former Electricity Minister Adel Karim had said back in 2021 that the ministry was closing in on an agreement with Acwa Power to develop a solar plant with the same specs.

There’s growing appetite for renewables in Iraq…: PowerChina will also build a 250 MW solar power plant in Iraq, Fadel said, without providing further details. The minister’s statements come a few weeks after TotalEnergies said it will develop a 1 GW solar power plant to supply the Basrah regional grid, after it sealed an agreement on a delayed USD 27 bn cluster of energy projects in the country. The French company will invite Saudi Arabia’s utility Acwa Power to take part in the project.

… Although one developer is out: Norwegian renewable energy producer Scatec has reportedly pulled the plug on two solar projects in the country, Iraq Oil Report reported, citing Iraqi officials. Scatec has pulled out of talks to build and operate two solar plants with a combined capacity of 525 MW in the south due to slow procedures and unclear legislation for solar, according to an Iraqi government source.

REMEMBER- Iraq wants to ramp up its solar energy generation: Iraq wants to produce 5 GW of solar power in 2023. The country signed solar power agreements over the past two years with several companies, lining up a total generation capacity of 7.5 GW.

WATCH THIS SPACE #3- More ambitious NDCs for Egypt coming: Egypt is aiming to have renewables account for 42% of its power generation by 2030, instead of its earlier target of reaching that milestone by 2035, under its revised nationally determined contributions (NDCs), Environment Minister Yasmine Fouad said in a statement released on Sunday. The revised NDCs, which will be submitted in June, will also slash the country’s dependence on natural gas in the electricity sector, the development of green hydrogen, and mulling the possibility of an ambitious 2050 long-term strategy for a net zero greenhouse gas emissions target, the minister said.

WATCH THIS SPACE #4- Indonesia to join the G7 climate club: Indonesia will join a new climate club established by the G7 last year to accelerate the green transition, German Chancellor Olaf Scholz said in a speech on Sunday, according to Bloomberg. Indonesia, which is Southeast Asia’s biggest economy, will receive EUR bns in the coming years from Western partners to speed up its transition from fossil fuels.

But Enterprise, what’s the climate club? Germany formed the G7’s climate club in December last year in a bid to fight global warming and accelerate industrial transition to cleaner energy forms and to further develop emission-reduction measures. The club also aims to give room for climate-friendly commodities, like green steel, to enter the market rapidly, according to German officials.

WATCH THIS SPACE #5- Denmark to exit the Energy Charter Treaty over climate action concerns: Denmark intends to quit the 1998 Energy Charter Treaty (ECT) over the international agreement’s protection of oil and gas projects, the country’s Climate, Energy and Utilities Minister Lars Aagard said on Thursday, according to Reuters. France, Germany, the Netherlands, Poland, and Spain all announced plans to depart from the agreement over its strong protections of fossil fuel projects. Italy withdrew from the ECT in 2015. Although treaty members negotiated reforms last year in a bid to address climate concerns, the EU Commission said in February that a joint bloc exit from the agreement would be “inevitable.”

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COME TO OUR NEXT ENTERPRISE FORUM-

The Enterprise Exports & FDI Forum, our latest industry-specific conference, is taking place on Monday, 15 May at Four Seasons, Nile Plaza in Cairo. The Enterprise Exports & FDI Forum will give insiders and newcomers alike the chance to talk about how to develop an export-centered business and how their companies can help Egypt build an export-led economy that makes it a magnet for foreign direct investment (FDI).

What’s the Enterprise Exports & FDI Forum? In the wake of successive floats of EGP, exports and FDI have never been more important to Egypt’s economy — or its businesses. We’re gathering some of the CEOs, top execs from local companies and multinationals, investors, bankers, and finance folks to speak on how businesses can adapt their strategies to be export-oriented and what Egypt as a country can do to draw foreign investment and much-needed FX. Expect it to be heavy on lessons learned in Egypt and other global growth markets — and lots of success stories. You can learn more on our conference website here.

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CIRCLE YOUR CALENDAR-

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.