TODAY: Taqa raises USD 1.5 bn in dual-tranche green bond issuance

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Wednesday, 19 April 2023

TODAY: Taqa raises USD 1.5 bn in dual-tranche green bond issuance

Good morning, friends. The climate news cycle seems to be slowing down as Ramadan winds to a close, giving us the last few regional climate finance updates to dive into.

A quick programming note: Enterprise Climate will be off from tomorrow until next Tuesday, 25 April in observance of the Eid El Fitr. We’ll be back in your inboxes on Wednesday, 26 April at our regularly scheduled time.

THE BIG CLIMATE STORY- The UAE’s Taqa has raised USD 1.5 bn in its dual-tranche green bond issuance, with the proceeds earmarked for financing green projects outlined within Taqa’s green finance framework and general corporate purposes. Elsewhere in the region, Jordan signed two loan agreements worth USD 650 mn with the World Bank to finance two projects targeting climate responsive investments and upgrades to the country’s electricity sector.

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

THE BIG CLIMATE STORY OUTSIDE THE REGION- Environmental campaigners sue the EU for labeling gas and nuclear investments “green”: Environmental groups are suing the European Commission for its decision last year to count nuclear energy and natural gas projects as “green” investments under the bloc’s Taxonomy of Sustainable Activities — a rulebook for investors aimed at channeling bns of EUR toward investments in renewable energy and green tech assets. Two separate lawsuits have been filed against the Commission in a bid to exclude the energy sources from the taxonomy: One suit by Greenpeace as well as another action by a coalition of NGOs and campaign groups including the World Wildlife Fund and Client Earth.

REMEMBER- Nuclear energy’s inclusion in the taxonomy has had EU members locking horns for some time: Debate over whether nuclear-derived hydrogen should be allowed to count towards the EU’s renewable energy generation targets has delayed the finalizing of a text outlining the EU’s diplomatic priorities ahead of COP28 — which was supposed to be agreed on by member countries back in February.

WATCH THIS SPACE #1- The EU approves legislation in line with 2030 climate target: The European Parliament approved sweeping reforms to carbon markets cracking down on European countries’ access to gratis CO2 permits by 2034 and adding shipping emissions to the carbon market starting 2024, according to a press release. The ambitious new climate policy — set to be approved by EU countries in the coming weeks — also includes a plan to phase in a levy on the import of high polluting goods including steel, cement, aluminum, fertilizers, electricity, and hydrogen by 2026. A decision to launch a separate EU carbon market for emissions from cars and buildings was among the reforms passed yesterday and will go into effect in 2027, Reuters reports.

ALSO- The parliament approved the allocation of EUR 87 bn to support individuals and groups impacted by the green transition. The Social Climate Fund, set to be launched in 2026, will support those likely to be negatively impacted by the transition to more climate-friendly fuels, especially in the areas of energy and transport, according to a press release. EUR 65 bn of the funds will be obtained by auctioning carbon permits to industries, while the rest will come from government budgets.

REMEMBER- The price of EU carbon permits has skyrocketed recently in anticipation of the reforms passed by the parliament yesterday. The rising prices helped the EU raise bns that have been allocated to EU governments to invest in climate measures, the newswire said.

WATCH THIS SPACE #2- Dewa expected to award construction contract for its new HQ in 2Q 2023: The Dubai Water and Electricity Authority (Dewa) is expected to select by June a developer for its new renewables-powered, carbon neutral, 15-storey headquarters, which is set to be built by 4Q 2024, Zawya reports, citing sources it says have knowledge of the plans. Dewa’s new HQ — for which it had awarded Ghantoot Transport & General Contracting and Ghantoot Gulf Contracting an AED 982 mn construction contract in 2019 for a previous development phase — will span some 2 mn sqm and generate 6.5 GWh of solar energy annually through building-integrated and other photovoltaic networks. Dewa extended last month the deadline on the tender for completion of its new HQ, which will be located in Dubai’s Jaddaf district, to 4 May from its previous closing date of 5 April.

WATCH THIS SPACE #3- US and EU climate bills may spur growth of green steel production: Incentives under the US’ Inflation Reduction Act and the EU’s Carbon Border Adjustment Mechanism (CBAM), coupled with an expected growth in steel demand and a lack of recyclable scrap metals, could drive an inflow of investments toward green steel production, a new report by the Energy Transitions Commission (ECT) finds. Though most commercial-scale green steel production projects have not yet secured final investment decisions, a viable investment case for projects centered on direct iron ore production via green hydrogen is “within reach” in the US, Spain, the UK, and France.

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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. 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 us a magnet for foreign direct investment (FDI).

Why exports & FDI? In the wake of successive floats of EGP, exports and FDI have never been more important to our economy — or our 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.

And what better place to discuss moving our goods than Egypt’s original logistics zone — the Nile. That’s why we’re looking forward to holding the event by the river’s vistas at the Four Seasons, Nile Plaza.

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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.