Good morning, ladies and gents. The news cycle is slowing slightly as summer holidays continue, but we have a couple of key updates to note. But first…

A quick programming note: Enterprise Climate will be taking a publication holiday tomorrow, we’ll be back in your inbox at the usual time on Monday, 21 August.

OUR TOP STORIES- Green packaging tech developer Papyrus Australia has deployed the base equipment for setting up a factory for a biodegradable food packaging manufacturing factory in Egypt and UAE’s NWTN Motors will acquire a 27.5% stake in EV manufacturer China Evergrande New Energy Vehicle Group at an equity investment of USD 500 mn.

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

THE BIG CLIMATE STORY OUTSIDE THE REGION- Gabon leads the way for Africa’s debt-for-nature swap: Gabon has wrapped up a USD 500 mn debt-for-nature swap that would pave the way for a refinancing of a small chunk of its debt and fund marine conservation. The transaction — a first of its kind in Africa — saw Gabon buy back USD 436 mn of its international bonds then switch the debt for a new longer-term USD 500 mn “blue bond” with a lower interest rate and longer maturity. The swap is expected to generate USD 163 mn for marine conservation projects over the next 15 years.

In brief: A debt-for-nature swap is where developing nations see a portion of their foreign debt forgiven under a restructured agreement on the condition that they invest some of the savings in local conservation measures. Supporters say it effectively uses public funds to de-risk private investment and could plug the multi-USD tn financing gap for nature protection, adaptation, and decarbonization. However, critics argue that the loan terms could be vague with transaction costs expensive.

Africa’s first debt-for-nature swap is dominating coverage in international press: Reuters | Bloomberg | The Financial Times | The Wall Street Journal

WATCH THIS SPACE #1- The world’s first ever green methanol-powered container ship berthed in Egypt’s East Port Said Port on Monday, according to a statement by the Suez Canal Economic Zone (SCZone). The green methanol-powered vessel marked its first-ever passage through an Egyptian port on the Mediterranean during its maiden journey, which began with Asia, is passing through Africa via Egypt, and will continue to Europe, the statement added.

This could help fuel Egypt’s green hydrogen ambitions: Dutch-based chemical producer OCI Global highlighted in June a “unique opportunity for the Suez Canal to position itself as a Green Marine Bunkering Hub to proactively attract more Green Marine Traffic to the area and be ahead of nearby ports such as Fujairah, Jeddah and Morocco.” The vessel’s passage through Egypt could help kickstart demand for green hydrogen offtake and consolidate the country’s position as a green hydrogen hub.

Background: The vessel is fueled by OCI Global under a partnership announced in June with Denmark’s shipping and logistics giant AP Moller-Maersk. OCI is providing the carbon-neutral methanol to fuel the maiden voyage of Maersk’s first dual-fueled container ship on its inaugural trip to Northern Europe this summer, passing by the world’s busiest shipping routes.

THE DANGER ZONE- The UAE must prepare for climate-driven extreme weather and intense rainfall as the world enters a new global warming paradigm, Al Arabiya writes. The Emirates are extremely vulnerable to the impacts of climate change, with droughts, extreme heat, and increased frequency of dust and sand storms among the climatic phenomena impacting the country, according to the Climate and Clean Air Coalition. “I think we can almost say we have shifted into a new paradigm in terms of where the range of climate behavior is going to be,” Director of the Climate and Water Program at Washington-based nonprofit Middle East Institute Mohammed Mahmoud told the news outlet, referencing the global heating record broken in July. The climate crisis costs the UAE government an average of GBP 6 bn annually in increased healthcare costs already, and even minor variations in weather patterns could significantly affect the country’s economic, environmental, and social well-being, the UAE’s Climate Change and Environment Ministry notes.

NON-CLIMATE REGIONAL HEADLINES:

  • UAE: The UAE has begun the local election process ahead of the planned vote in October. (Emarat Al Youm)
  • KSA: Saudi Arabia’s inflation slowed down for a second consecutive month in July to 2.3% from 2.7% a month earlier. (Okaz)

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IN THIS WEEK’S EPISODE- It’s the very first panel of the Enterprise Climate Forum: Egypt brought home major victories from COP27, signing framework agreements for about USD 85 bn worth of green hydrogen projects, and announcing more than USD 10 bn in funding for the Nexus for Food, Water and Energy (NWFE) program. While we have a long way to go before much of the gains from COP27 will be tangible to the private sector, the opportunities in green hydrogen and NWFE are “now.” Our panelists helped explain how these two can be made actionable. We were joined by Jorgo Chatzimarkakis, CEO of Hydrogen Europe, Khalid Hamza, Director and head of Egypt at the European Bank for Reconstruction and Development, and Khaled Naguib, CEO of Hydrogen Egypt.

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CIRCLE YOUR CALENDAR-

Sweden will host World Water Week from Sunday, 20 August to Wednesday, 24 August in Stockholm. Organized by the Stockholm International Water Institute, the event will bring together policy makers, NGOs, and private sector players to discuss innovative solutions to managing water and how to tackle food security, biodiversity, and climate change.

The US will host the International Conference on Recycling and Waste Management and the International Conference on Environmental Sustainability and Climate Change from Monday, 21 August till Tuesday, 22 August in Philadelphia. The waste management conference will gather environmental engineers, and recycling, wastewater treatment, and climate researchers to discuss trends and innovations in plastics recycling, wastewater treatment, and renewable energy. The sustainability and climate change conference will bring together researchers and industry leaders to spotlight innovations in environmental science, climatology, renewable energy, and pollution control.

The Dominican Republic will host the COP27 Transitional Committeefrom Tuesday, 29 August to Friday, 1 September. The meeting aims to establish institutional arrangements, modalities, governance structures, and terms of reference for the landmark Loss and Damage Fund. It also wants to expand sources for climate funding under the program.

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

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