Good morning, friends. Our busy week of news continues this morning with a spate of climate updates across all corners of the region.

THE BIG CLIMATE STORY- The UAE is committing USD 4.5 bn to help Africa advance clean energy projects. The funds pledged by the upcoming COP host will be provided by the UAE’s renewables giant Masdar, the Abu Dhabi Fund for Development, the country’s export credit agency Etihad Credit Ins., and Dubai-based renewables firm Amea Power.

^^ We have the details on this story and much more in the news well, below.

THE BIG CLIMATE STORY OUTSIDE THE REGION- The economic toll of invasive species is at a record-high: The annual impact invasive species have on the global economy has quadrupled from 1970 levels to USD 423 bn. Invasive pests are plants or animals — like malaria and dengue-carrying mosquitoes — that are inadvertently transported by humans to new locations with severe impact on ecosystems. The toll ranges from outcompeting indigenous wildlife, damaging infrastructure, and endangering human health, the newswire notes. Some 3.5k types of harmful invasive alien species contributed to 60% of flora and fauna extinctions over the study’s timeframe.

An impact on climate-driven natural disasters: Invasive grass species brought over to Hawaii over the past three centuries have outstripped non-flammable native species and largely contributed to fanning the flames of the deadly wildfires that ravaged the island in August. Invasive species are expected to grow further in numbers on the back of climate change as global warming enables pre-existing invasive species to expand their range into territories that are presently too cool for them. New shipping routes opening up as a result of sea ice loss will also exacerbate the growth of the pests.

The story grabbed headlines in the international press yesterday: Reuters | CNN | The Guardian | Euronews | France 24 | Deutsche Welle

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COUNTDOWN- There are just 12 days until the Enterprise Finance Forum, taking place 18-19 September (Monday and Tuesday) at the St. Regis Hotel on the Nile Corniche. This flagship forum is the latest in our must-attend series of invitation-only events, where CEOs, bankers, investors, founders, and corporate leaders will meet to discuss the trends shaping the future of banking, finance, NBFIs, and fintech — and of their clients.

You won’t want to miss this one: Join Todd Wilcox (CEO and deputy chair, HSBC Egypt), Akef El Maghraby (vice chairman, Banque Misr), Tarek El Nahas (group head of international banking, Mashreq), Nivanne Mortagy (North Africa lead, upstream, financial institutions group, IFC), Mounir Nakhla (founder and CEO, MNT Halan), Leila Serhan (group country manager and senior VP for North Africa, Levant and Pakistan, Visa) and many others for talks on everything from investing in uncertain times, to the coming of AI and digital banks. Stay tuned for the unveiling of our full list of speakers in the coming days.

Tap or click here to REGISTER or view the FULL AGENDA.

We are honored to count some of the region’s most important financial institutions as our partners for this special event. The Enterprise Finance Forum could not take place without the support of our partners including Banque Misr, Al Baraka Bank, FAB Misr, HSBC, Mashreq, CI Capital, Global Corp, Visa, Hassan Allam Utilities, and the IFC.

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WATCH THIS SPACE #1- KSA is considering investments in the “Made in Italy” fund: Saudi Arabia is in talks over potential investments in Italy’s strategic “Made in Italy” fund, Reuters reports, citing comments made by Italy's Industry Minister Adolfo Urso. The fund — approved in May — will have an initial endowment of EUR 700 mn in 2023 and an additional EUR 300 mn next year in state cash, the newswire said, adding that the funds will be used to support Italian companies operating in key supply chains as well as boost procurement and reuse of critical raw materials. Urso’s comments came on the sidelines of a signing ceremony for an MoU aimed at increasing the two countries’ economic relations, particularly in energy.

Italy’s new government is seeking closer relations with our region: Italy's Prime Minister Giorgia Meloni has “pursued tighter ties with Gulf countries since taking office last October,” and the country sees itself playing an increasing role in linking the EU with energy suppliers in the MENA region, Reuters said. Saudi Arabia will focus on energy, sustainability, supply chains, and sport to expand its presence in Italy, Investment Minister Khalid al-Falih said at the same event.

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WATCH THIS SPACE #2- Will Egypt offer tax breaks for some green industries? The Egyptian government has identified seven major strategic industries to benefit from tax exemptions announced from the presidency in late August, Asharq Business reports, citing a government source with knowledge of the matter. Industries would include green hydrogen, solar energy, electric vehicles, electronics, petrochemicals, mining and textiles, the source noted. “Seven major industries have been identified primarily and other industries are currently under review. A final list [of the industries] would be finalized by the end of the year,” the source said.

REMEMBER- Egyptian President Abdel Fattah El Sisi instructed in late August the government to implement a fresh package of incentives to support industrial activity and accelerate localization. Those incentives include fresh five-year tax breaks except for VAT, discounts on land prices, and an expansion of the single-approval “golden” license in a bid to accelerate projects in priority sectors, which include chemicals, metals, building materials and textiles, and increase foreign direct investment, according to the Egyptian Presidency.

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WATCH THIS SPACE #3- Greece, Cyprus, and Israel plan to connect their electricity grids: The governments of Greece, Israel, and Cyprus have agreed to strengthen bilateral energy cooperation and are exploring the possibility of establishing a subsea electricity link to connect their national grids, Reuters reports, referencing a meeting between Cyprus President Nikos Christodoulides, Greek Prime Minister Kyriakos Mitsotakis, and Israeli Prime Minister Benjamin Netanyahu. Israel and Cyprus are expected in the next three to six months to set laws on their national gas exporting strategies “We agree that natural gas and renewable energy is a prime pillar of cooperation in the region, especially in light of the recent geopolitical developments. Especially in Europe, (it) dictates the need for energy diversification and increased interconnectivity,” Christodoulides said. Israel is “eagerly pushing” to jump aboard the planned EuroAsia Interconnector, the newswire notes, citing comments by Netanyahu. If approved, the subsea cable would transmit up to 2 GW from Israel to Cyprus and Greece.

REMEMBER- The Cypriot grid may not be ready for the influx of renewables 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 continue to cause power outages in the country. 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 back in March.

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WATCH THIS SPACE #4- Shipping infrastructure needs expansion to accommodate CCS: With the demand for carbon capture on the rise, a fleet of 55 CO2 carriers and 48 terminals will be needed by 2030 to facilitate shipping to storage locations worldwide, according to Norway-based consultancy Rystad Energy. An estimated 90 mn tons of CO2 per year will be captured by the end of the decade and stored using carbon sequestering. Besides shipping, captured carbon could also be moved through pipes, which is currently the most commonly used method of CO2 land transport, the consulting agency said, adding that 330 CO2 pipelines are expected to be operational by 2030. Underwater pipelines are also expected to play an important role in transporting CO2, especially as prospects for storing the gas beneath the ocean floor have been gaining traction in recent years.

Who will dominate CO2 shipping activities? Despite the sector currently being in its nascent stage, many EU countries are expected to take center stage in the CO2 shipping surge, especially as some have inadequate space to store their CO2 domestically. According to Rystad’s estimates, Norway could account for 30% of global shipped CO2 by 2030 with 26 mn tons per year, followed by the Netherlands with 23 mn tons per year, the UK with about 20 mn, France with 17 mn, and Belgium with 13 mn tons per year. Australia is also set to be an important player in the global market, shipping and storing CO2 from domestic projects and neighboring Asia-Pacific countries, including Japan, the consultancy added. The EU is working on a strategy aimed at stepping up investments in capturing and storing carbon dioxide emissions.

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NON-CLIMATE REGIONAL HEADLINES:

• UAE: The UAE's non-oil private sector has eased to 55.0 in August from 56.0 in July signaling strong improvements in output and new business intakes. (S&P Global, pdf)
• Egypt: Egypt’s non-oil private sector remained at a two-year high in August, showing a “mild” level of contraction. The country’s PMI remained unchanged at 49.2 last month, keeping us “close to the 50.0 neutral threshold,” suggesting that business activity is stabilizing “after a prolonged period of contraction.” (S&P Global, pdf)

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CIRCLE YOUR CALENDAR-

Egypt will host the Annual Regional Sustainability and Development Forum on Thursday 7 September and Friday 8 September in Cairo. The two-day forum brings together government officials, policymakers, the business community, NGO representatives, and others to discuss challenges to sustainable development in the region. It will also showcase the latest sustainable development technologies and practices, allowing businesses and organizations to present their related work and products.

India will host the G20 Heads of State and Government Summit from Saturday, 9 September to Sunday, 10 September in New Delhi. A G20 Leaders’ Declaration will be adopted at the conclusion of the summit, stating commitment towards priorities discussed and agreed upon during previous ministerial and working group meetings through the year, the organizers note. The last meeting of G20 energy ministers in July failed to reach consensus on a fossil fuel phasedown as several major producing nations, led by Saudi Arabia, blocked the move. Among other expected announcements, the Global Biofuels Alliance is scheduled to be launched at the summit.

Egypt will host the Hydrogen Egypt Summit on Wednesday 13 September and Thursday 14 September in Cairo. The two-day event will bring together members of the local and global hydrogen industry to discuss optimizing hydrogen and green hydrogen development in MENA. The event will serve as a platform for the local industry to discuss potential investments with global investors, operators, and technology providers.

Morocco will host the World Power-to-X Summit from Tuesday 19 September to Thursday 21 September in Marrakech. The event brings together policymakers, industry leaders, and innovators in green hydrogen to showcase success stories in the carbon-free industry. It will also explore scaling-up projects throughout the Power-to-X value chain and hold discussions on harmonizing roadmaps of contiguous countries and adjacent regions.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.