TODAY: Neom Investment Fund makes its initial investment in green mobility
Good morning, ladies and gents. The climate sector updates continue to roll in from Saudi Arabia as Davos in the Desert is underway in Riyadh, with a few other bits to note from the wider region. Don’t miss our deep dive into the world of quantum computing and what it means for our industry.
THE BIG CLIMATE STORY- Saudi Arabia’s Neom is investing in US-based electric seaglider manufacturer Regent and US-based autonomous driving company Pony.ai to establish operations for both green vehicles in the smart city and Saudi-based Islamic Development Bank has partnered with the World Bank to help finance climate-centered water, energy, and food projects in the MENA region by 2026.
^^ We have the details on these stories and more in the news well, below.
THE BIG CLIMATE STORY OUTSIDE THE REGION- No single story is dominating the headlines, but concern is growing over high interest rates derailing the ambitions of climate regulators and big auto to accelerate the shift to EVs, Reuters writes. While sales continue to grow, demand is not keeping up with the expectations of players who have invested USD bns in the sector, leaving companies to shift plans ahead of 2024. "EV demand next year could be lower than expectations," CFO at South Korean battery maker LG Energy Solution Lee Chang-sil said. Honda and General Motors also said they were axing a USD 5 bn plan to develop lower-cost EVs together just one year after launching the effort.
WATCH THIS SPACE #1- Aramco will kick off SAF demo pilots by 2025: Saudi oil giant Aramco plans to bring online two SAF demonstration projects in KSA’s Neom by 2025, Asharq Business quotes the company’s CTO Ahmad Al-Khowaiter as saying. The company plans to earmark “hundreds of mns of USD” to build the plants, one of which will be developed in partnership with Spain’s Repsol. Earlier this week, Aramco signed a joint development agreement (JDO) to establish a separate e-fuel demonstration plant with Enowa — Neom’s energy and water utility subsidiary.
Aramco is going big on e-fuels and SAFs: Last year, Aramco and Repsol signed a partnership agreement to similarly establish an e-fuels demonstration plant in Spain that will initially have an 8k liter daily production capacity. The production demonstration of low-carbon synthetic diesel and jet fuel for automobiles and aircraft.
WATCH THIS SPACE #2- Investcorp Capital announces IPO on ADX: Bahrain-based alternative asset manager Investcorp intends to proceed with an IPO of 643 mn shares — around 29% of its issued capital — at USD 0.50 a share on the Abu Dhabi Securities Exchange (ADX), Wam reports. The company will issue 321.5 mn new shares and the selling shareholder, Investcorp S.A., will sell 321.5 mn shares. The subscription period, running from 2 to 9 November, will offer two tranches, and the listing is set for 17 November.
REMEMBER- Investcorp Co-CEO Rishi Kapoor told The National last June that the firm plans to have a new climate-focused investment platform up and running before COP28 kicks off next month. The new investment vehicle will grab stakes in companies operating in various sectors including mobility, climate technology, carbon management, and energy transition and storage industries.
WATCH THIS SPACE #3- Will the UAE strike a net-zero trade agreement with the Scots? Scottish Wellbeing Economy Secretary Neil Grey is heading to the UAE to explore the potential for an agreement between the two countries on renewables projects, according to The National. The conference will host representatives from 19 Scottish companies to boost the county's renewables potential. “We have the resources, skills, and ambition to advance green energy technologies and accelerate decarbonization,” Gray said. “Continuing to build trade and investment will play a vital role in helping Scotland build a greener, fairer well-being economy and all the benefits that will bring to families, communities and businesses across the country.”
WATCH THIS SPACE #4- Shell to trim staff at low carbon solutions unit: Oil giant Shell will axe 15% of its workforce at its Low Carbon Solutions (LCS) unit in 2024, Reuters reports. The move comes a week after CEO Wael Sawan said his company remains committed to zero emissions by 2050, but will change its approach to achieving its planned carbon neutrality to go in line with its “ruthless” focus on performance.
WATCH THIS SPACE #5- Apple accused of greenwashing over its latest “carbon-neutral” products: Apple is facing backlash from European environmental and consumer groups after the iPhone maker claimed its latest products are “carbon neutral,” the Financial Times reports. Last month, Apple put its “environmentally friendly” credentials at the center of its biggest annual product launch, and called some Apple Watch models its “first-ever carbon neutral products'” by buying carbon credits to cancel out the 7 to 12 kg of greenhouse gas emissions behind each watch, and replacing the leather in the watch band with different materials with a “significantly lower” carbon footprint. The tech giant said it is buying carbon credits from timber reforestation projects in Paraguay and Brazil.
Why is buying carbon credits not an effective net-zero claim? Climate campaigners have been questioning whether tracking carbon emissions provides a thorough environmental assessment of small electronic devices such as smartwatches and wireless earbuds, which are difficult to repair and end up as e-waste, FT writes. “Carbon neutral claims are scientifically inaccurate and mislead consumers,” Monique Goyens, the director-general of the European Consumer Organisation (BEUC) told the news outlet. In the days following the Watch launch, EU heads in Brussels said that it would ban “neutrality” claims that are based on the purchase of carbon credits by 2026.
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CIRCLE YOUR CALENDAR-
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 Water Resources and Irrigation Ministry, in partnership with the EU and FAO.
India will host the International Solar Alliance from Monday, 30 October to Thursday, 2 November in New Delhi. Some 96 member countries will participate and discuss mobilizing funds to accelerate solar deployments, the universalization of energy access through solar mini-grids, and diversifying manufacturing and supply chains for solar energy production.
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.