TODAY: Emerging markets get a boost for their energy transition from the IFC and ADFD

Good morning, friends, and welcome to another finance heavy day with some key updates from the UAE. Let’s jump right in.

THE BIG CLIMATE STORY- The International Finance Corporation signed an agreement yesterday with state-owned Abu Dhabi Fund for Development to jointly co-invest USD 1.5 bn in the energy transition for emerging markets, while Dubai Islamic Bank raised USD 1 bn in its second green sukuk issuance.

^^We have chapter and verse on these stories and more in the news well below.

THE BIG CLIMATE STORY OUTSIDE THE REGION-

There’s no single story dominating the global climate conversation this morning, but there are a couple of conversations being had:

#1- The European Commission published rules yesterday that pave the way for some nuclear-derived hydrogen to count towards the EU’s renewable energy generation targets. Hydrogen produced in facilities utilizing low-carbon sources — potentially including nuclear — could count towards these targets, as long as producers sign long-term PPAs with renewable energy providers. This follows months of debate between pro-nuclear countries like France and countries seeking to exclude nuclear-based fuels from EU renewables targets, including Germany. (Reuters | Euronews)

#2- Net-zero pledges by some of the world’s largest companies will reduce their emissions by just 36% — a far cry from climate targets required to maintain the 1.5°C global warming threshold, according to a report by Corporate Climate Responsibility Monitor and the NewClimate Institute published yesterday. Some 24 of the world’s biggest companies assessed in the report — collectively raking in USD 3 tn in revenues in 2021 — have inadequate climate targets and future carbon neutrality plans that are “exaggerated, false and misleading,” the report concludes. (Bloomberg | AFP)

WATCH THIS SPACE- Will Egypt’s national hydrogen strategy be unveiled soon? The Egyptian government’s national hydrogen strategy could be materializing by the end of 1Q 2023, two sources with first-hand knowledge of the process told EnterpriseAM. One source revealed the government is expecting to unveil the highly anticipated strategy between the end of February and early March, and another source familiar predicted the strategy to be finalized and released sometime in March.

REFRESHER- The strategy is a key milestone for developers who have signaled interest in Egypt’s world-scale hydrogen program, which would demand the investment of some USD 40 bn in renewable energy alone to generate the 40 GW of power needed if every project now on the drawing board makes it to implementation. The state has inked framework agreements worth c. USD 85 bn for green hydrogen and ammonia plants.

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THE DANGER ZONE- Some plug-in hybrid electric vehicles (PHEVs) are producing up to 7x the emissions they claim and have less range than advertised, according to research commissioned by European clean transport campaign Transport & Environment (T&E). A study conducted by Austria’s Graz University of Technology found that some PHEVs — like the BMW 3 Series — produced more than 3x as many emissions as they claimed on city and commuter routes even when fully charged. The Peugeot 308 and Renault Megane produced 20% more emissions than claimed on a 55 km commute, and researchers found that all but one of the PHEVs tested had less range on a single electric charge than advertised. When tested on an empty battery, the PHEVs produced 5-7x as much emissions as claimed, T&E said. The study concluded that PHEVs should be taxed for their actual emissions rather than their advertised or claimed emissions.

What are PHEVs? PHEVs use a combination of gasoline and electric motors, allowing drivers to switch between an internal combustion engine and battery-power. They conventionally have large, chargeable batteries that can be charged and provide more mileage than conventional hybrid models.

COME TO OUR NEXT ENTERPRISE FORUM-

We’re excited to unveil our next C-level event in Cairo: The Enterprise Exports & FDI Forum, where we will take a deep dive into two of the most critical topics affecting our community.

Interested to learn more about how Egypt is planning on drumming up foreign direct investment (FDI) for all these green hydrogen, solar and wind agreements? Exports and FDI have never been more important to Egypt’s economy — or its businesses — than in the wake of the float of the EGP and the country’s positioning as a regional renewable energy hub. We think there’s a unique chance to build an export-led economy that makes Egypt a magnet for FDI and all the benefits that will come with it.

Want to join the conversation? Drop us a line on events@enterprisemea.com.

CIRCLE YOUR CALENDAR-

The UAE will host the World Environment, Social and Governance Summit from next Tuesday, 21 February to Thursday, 23 February in Dubai. The summit will host discussions on reducing carbon emissions and the urgency to incorporate ESG. Stakeholders from various fields will address the financial and strategic implementation of ESG.

Egypt will host the CSR Forum from 2-5 March at Somabay, Hurghada. The event aims to further discussions put forth during COP27 and boost private and public sector cooperation on climate action. You can register for the event here.

The Arabia CSR Awards is accepting applications until Friday, 30 June. The awardwinners will be announced during a ceremony on Wednesday, 4 October.

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.