TODAY: Egypt’s green hydrogen train keeps rolling on + the EU agrees to push for “unabated” fossil fuel phase-out at COP28
Good morning, ladies and gents. We have a light and speedy issue for you this morning as the news cycle slows to a crawl as we near the weekend. Some significant updates are emerging from the EU, but first…
THE BIG CLIMATE STORY- Egypt’s Suez Canal Economic Zone has inked agreements — worth a combined investment ticket of USD 14.75 bn — for two clean energy projects with China Energy and China’s United Energy.
^^ We have the details on this story and more in the news well, below.
HAPPENING TODAY- The Environment Ministers in the Islamic World is kicking off today in Jeddah and concluding tomorrow. The two-day event will bring together ministers from 52 countries, as well as delegates from 30 regional and international environmental organizations, to discuss the green transition and developments in clean technologies within the Islamic world.
THE BIG CLIMATE STORY OUTSIDE THE REGION- Greta is back in detention again: Climate activist Greta Thunberg was among dozens detained by police in London yesterday at a protest obstructing the entrance to the Energy Intelligence Forum, which hosts fossil fuel executives and government ministers. "The world is drowning in fossil fuels. People all over the world are suffering and dying from the consequences of the climate crisis caused by these industries," Thunberg said prior to her arrest. The Swedish activist has been detained by police or forcibly removed from protests in Sweden, Norway and Germany this year.
The news made headlines in the international press: Reuters | BBC | The Guardian | Deutsche Welle
OVER IN COPLAND- EU decides to push for phase-out of “unabated” fossil fuels: After months of debate, the EU has decided it is not ready to push for a full fossil fuel phase-out agreement at COP, opting to negotiate for an “unabated” phase-out pact instead, Reuters reports. While specifying “unabated” leaves room for the continued production of fossil fuel if carbon capture technologies are used, the agreement did note that emissions capturing technologies “exist at limited scale and are to be used to reduce emissions mainly from hard to abate sectors,” and are “not be used to delay climate action,” the newswire writes. Bulgaria's Environment Minister Julian Popov told Reuters the aim was to keep carbon capture open as an option for polluting sectors with limited technologies to cut emissions — such as chemicals and cement manufacturing — but not for the energy sector where the shift to renewables is already underway. Some diplomats told the newswire earlier this month that a weakened stance from the EU could kill off hopes of an ambitious COP28 outcome.
It’s still a big step forward: If the EU’s stance is adopted during COP, it will mark the first time countries agree on a global phase-out target. “We will be at the forefront of the negotiations to show the EU's strongest commitment to the green transition and encourage our partners to follow our lead,” Spain's Climate Minister Teresa Ribera said after the bloc’s approval.
ALSO- The UAE and Brazil will partner to establish the first Ministerial Dialogue on Building Water-Resilient Food Systems, Wam reported earlier this week. The UAE’s Climate Change and Environment Minister Mariam Almheiri said the two countries will partner to deliver a first of its kind ministerial roundtable on developing water-resilient nutritional networks. The joint ministerial dialogue — whose panelists will include Director-General of the UN’s Food and Agriculture Organization Qu Dongyu; President of the International Fund for Agricultural Development Alvaro Lario; Executive Director of the World Food Programme Cindy McCain; and President of Italy Sergio Mattarella — aims to find pathways to bolstering food and water security while slashing emissions from the global agricultural sector, which currently accounts for some 33% of the world’s annual greenhouse gas emissions.
REMEMBER- Climate-induced food and water shocks could cause USD 5 tn in global losses in five years under extreme scenarios. Reports have found that nutritional insecurity could have an economic toll of up to USD 5 tn under a “plausible increase” scenario, and could reach USD 17.6 tn under the most extreme forecast. The lowest severity scenario would see an economic toll of USD 3 tn, the firm said.
WATCH THIS SPACE #1- Sacré non to nuclear energy inclusion for France: The government of Germany has again rejected an EU proposal to include nuclear energy toward renewable its energy generation targets, frustrating efforts by France to rally support for the power source’s usage, Bloomberg reports. The sticking point is Germany’s belief that France will use its advantageous nuclear power capacity to undercut electricity prices across the EU. France — which has an aging nuclear fleet — is reportedly looking to increase the bloc's nuclear energy generation capacity from 100 GW to 150 GW by 2050 via the installation of 30-45 micro and large nuclear reactors, and debate between Europe’s two largest economies is on the extent of bloc funding should be earmarked toward extending the life cycle of atomic plants.
Continued spats: France and Germany have been locking horns on the matter since February, effectively postponing finalization of a text outlining the EU’s diplomatic priorities ahead of COP28. The two countries have to reach an agreement on nuclear’s status two months before the bloc’s elections next June, Bloomberg writes. Spain is reportedly spearheading mediation efforts, and was set to propose a compromise between the EU’s 27 members yesterday aimed at safeguarding France’s already operational plants, while “easing fears that it could undercut power prices in the rest of Europe.”
IN OTHER EU NEWS- The bloc is set to discuss regulations to reduce plastic pellet pollution: The European Commission proposed measures earlier this week to prevent pollution caused by the spillage of plastic pellets — small granules used to manufacture plastic products — into the environment, Reuters reports. Around 176k metric tons of microplastics are unintentionally released into the environment each year, according to the European Chemicals Agency. Proposed measures include prevention initiatives to avoid any spills of plastic pellets, containment of spilled pellets, and cleaning campaigns if spills occur. The commission decided to focus on pellets — the third largest source of microplastics after tires and paint — given the better availability of data on pellet pollution. The EU's 27 member states and the European Parliament will negotiate the draft measures before they are approved.
The goal: The EU aims to reduce pellets released in the environment every year by 74%, EU environment commissioner Virginijus Sinkevicius told Reuters. The high amount of discarded pellets is the result of mishandling throughout the entire supply chain. Pellet waste management is part of a bigger plan to decrease microplastic pollution by 30% by the end of the decade.
WATCH THIS SPACE #2- Global grid infrastructure upscaling is needed, says IEA: Countries need to commit USD 600 bn in annual investments by 2030 toward doubling or upscaling the world’s current electricity grid capacity to pave the road to net zero, International Energy Agency (IEA) Executive Director Fatih Fatih Birol told The Guardian. To accommodate the influx of clean energy from planned global projects, the world needs to establish or refurbish a total of 80 mn km of electricity grids, Birol said. Renewables projects expected to yield 3 TW are currently on hold due to insufficient transmission and storage grid infrastructure — 5x the amount of solar and wind power added globally last year, the news outlet writes. Inadequate government incentives geared toward improving electricity grids would cause a hike in gas reliance, threatening to push the Paris-agreed 1.5 C warming threshold “out of reach,” Birol warned, adding that emerging markets — aside from China — are particularly seeing a decline in grid investment.
THE DANGER ZONE- Climate tech funding experiences a slump: Climate tech funding dropped 40% y-o-y in 3Q 2023 due to a global investment downturn, but the sector still remains attractive on the whole, according to a new report by PricewaterhouseCoopers (PwC). The amount of capital earmarked by global venture capital and private equity firms for climate technology startups totaled USD 65 bn during the 12 months ending on 30 September, but the decline in investments is “significantly smaller” than the VC and PE average fall of 50% across other sectors.
First-time investors are jumping on the bandwagon: PwC analyzed over 32k transactions worth some USD 490 bn directed toward 8k climate startups, the report notes, revealing a steady increase in the number of first-time climate tech startup investors in 2023. It said that while the industries that need to attract funding the most — including agritech businesses and built environment startups — saw a decrease in their funding levels, venture capital and private equity firms on a whole showed interest in financing emission cutting tech startups including carbon capture, solar energy developers, and clean hydrogen and biofuel production businesses. Green hydrogen investments saw a 64% hike y-o-y, while carbon capture and storage is up 39%, and solar power’s share rose 24%, according to the report.
|
***
YOU’RE READING ENTERPRISE CLIMATE, the essential MENA publication for senior execs who care about the world’s most important industry. We’re out Monday through Thursday by 5am Cairo / 5am Riyadh / 6am UAE.
EXPLORE MORE OF ENTERPRISE ON THE WEB — tap or click here to read EnterpriseAM, EnterprisePM, and The Weekend Edition on our powerful new website packed with reader-friendly features.
Were you forwarded this email? Get your own subscription without charge here or reach out to us on climate@enterprisemea.com with comments, suggestions and story tips.
***
CIRCLE YOUR CALENDAR-
Saudi Arabia will host the Future Investment Initiative from Tuesday, 24 October to Thursday, 26 October in Riyadh. The three-day event will bring together state leaders, policymakers, executives, academics, NGOs, entrepreneurs, and scientists to host panels on how to scale green technologies, mining, AI’s role in the energy revolution, and how geoeconomics will impact critical minerals, the program (pdf) outlines.
Cairo Water Week is taking place from Sunday, 29 October to Thursday, 2 November. This year’s event will focus on global green developments in the water sector with sessions discussing the development of scientific solutions, practical tools, policies, and concrete measures to overcome today’s water challenges. The five-day event is organized by Egypt’s Ministry of Water Resources and Irrigation, in partnership with the EU and FAO.
The UAE will host the Forbes Middle East Sustainability Leaders Summit from Wednesday, 1 November to Saturday, 3 November in Abu Dhabi. The summit will gather international leaders in sustainability, technology, finance, and policy to drive green strategies globally. The agenda includes sessions on climate-smart cities, green mobility, sustainable finance, and sustainable tourism. The summit is expected to set the tone for international and regional dialogue and decision-making, including COP28 which will kick off in late November.
Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.