Good morning, ladies and gents. It’s another busy day on the climate business front as COP28 rolls on. So unless you’ve been living under a rock…

HERE’S THE COP28 GUIDE- Click here to check out handy guide (pdf) for the main thematic days and what to expect. Head to the official events schedule for a full rundown of all the panels, workshops, discussions, debates, and keynote speeches.

DAYS TO LOOK FORWARD TO-

6 December: Transport

10 December: Food, Agriculture, and Water

10-11 December: Final Negotiations

HAPPENING TODAY-Energy and Industry + the Just Transition. Discussions will focus on how to achieve rapid decarbonization and a just energy transition across the wider spectrum of energy and industrial value chains. Key topics will include boosting the deployment of renewable energy, unlocking greater energy efficiency, innovation and action for hard-to-abate sectors including steel and aluminum, and the decarbonization of oil and gas supplies including methane abatement and carbon management tech.

ALSO KICKING OFF TODAY- THE Green Hydrogen Summit is opening its doors and running through to Thursday, 14 December in Muscat. The two-day event will bring together green fuels developers, renewables companies, and policy makers in a bid to chart a course toward carbon-neutrality by 2050. Aside from the conference, the summit will also include masterclasses delving into the specifics of the green hydrogen value chain, from green electricity production to H2 production, distribution and storage. You can register for the event here.

THERE’S A BIG CLIMATE STORY (OTHER THAN COP) OUTSIDE THE REGION- Death toll from Tanzania flooding on the rise: The combined impact of the El Niño and the Indian Ocean Dipole climate phenomena have led to severe seasonal flooding in Tanzania over the weekend, killing at least 57 people as of yesterday and disrupting the lives of over 5.6k people in the country. The ‘ once in a century ’ torrential rains have similarly displaced thousands of people in Kenya, Somalia, and Ethiopia since flooding began in November. Tanzania’s President Samia Suluhu Hassan cut her COP28 trip short yesterday to return and manage the crisis unfolding.

The story grabbed headlines in the international press:BBC | Reuters | Bloomberg | France 24CNN | The Guardian

THE BRIEF LOOK AT COPLAND- USD 57 bn in climate pledges made so far at COP28: Governments, businesses, NGOs and donors have pledged over USD 57 bn in commitments towards tackling climate change over the first four days of COP28, Wam reports.

Where’s the USD 57 bn going?

  • USD 30 bn to launch the climate finance vehicle Alterra
  • USD 725 mn to the recently operational Loss and Damage Fund
  • USD 3.5 bn to the Green Climate Fund
  • USD 9 bn from the World Bank to finance climate projects globally
  • USD 150 mn to water security projects
  • USD 2.7 bn to climate-health projects
  • USD 2.6 bn to biodiversity and nature protection
  • USD 2.6 bn to food systems transformation
  • USD 2.5 bn to renewable energy
  • USD 1.2 for methane emission reduction
  • USD 1.2 for relief, recovery and peace initiatives

And another USD 1.7 bn raised for biodiversity conservation from the UAE: The COP28 presidency said it has raised an initial USD 1.7 bn to fund biodiversity and conservation initiatives in forests and oceans, Khaleej Times reported, citing UN Climate Change High-Level Champion for COP28 Razan Khalifa Al Mubarak.

Global donors also pledged USD 777 mn to put an end to neglected tropical diseases: Global donors and philanthropists pledged over USD 777 mn to support efforts to eradicate neglected tropical diseases (NTDs) in Africa on COP28’s Health Day, according to a statement. The Reaching the Last Mile Forum (RLMF) — a multi-donor fund launched in 2017 to end NTDs — will also expand from USD 100 mn to USD 500 mn, the statement said. Among the donors is the Gates Foundation, which has pledged to contribute USD 100 mn to the fund.

IMF CHIEF CALLS FOR UPPING CARBON PRICING- The International Monetary Fund (IMF) has called for raising the trading price of carbon in efforts to incentivize the world’s biggest polluters to accelerate their decarbonization efforts, Reuters reports, citing comment made by IMF Managing Director Kristalina Georgieva. Raising the price of carbon can help collect alternative funds for climate action without drowning developing countries in green debt, Georgieva argues. The price of carbon needs to more than double to average at least USD 75 / ton by 2030 for global climate goals to succeed, she told Reuters over the weekend.

Carbon prices are slowly picking up, and the EU is heading the way: Georgieva’s call for higher pricing during COP28 comes after the IMF increased its average carbon pricing forecast by 10% to USD 85 a ton by 2030. The ETS registered the largest increases in the price of carbon in 2022, with prices reaching EUR 100 for the first time, according to the World Bank’s State and Trends in Carbon Pricing 2023 report (pdf). Carbon prices were reduced by up to 35% in some countries, and about a third have the same prices, while less than 15% declined. California currently prices carbon allowances at just under USD 30 / ton, Reuters notes.

REMEMBER- Carbon markets have a high potential to cut emissions: At the opening session of the G20 summit in September, Von der Leyen said that the EU’s “Emissions Trading System” (ETS) has helped reduce emission by 35% since 2005, while generating more than EUR 152 bn in revenues, encouraging others to follow suit. There are currently 73 carbon pricing instruments in operation, covering around 23% of global greenhouse gas emissions.

The shipping sector’s new ETS has been a target of calls to raise carbon prices: The EU’s ETS reforms approved earlier this year — which added shipping emissions to the carbon market from 2024 — is likely to be traded at EUR 90 per ton of CO2. This price is too low to “enable clean alternatives like green methanol to compete on price with fossil fuels in the near future,” senior consultant at Drewry Stijn Rubens said. However, the carbon tax is “almost certainly going to rise” after 2024 as the EU updates its climate action strategies, Bloomberg said.

Others call for more investments: Ramping up investments in hydrocarbons is essential if the world is to avoid a “higher pricing environment” in its transition to green energy, Reuters reports, citing the UAE’s Energy Minister Suhail al-Mazrouei. Without lower commodity and energy prices, the green transition efforts will be hampered, the minister warned during an event on the margins of COP28.

JABER ON THE DEFENSE- Al Jaber denies disrespecting climate science: In response to recent criticism for denying the science behind fossil fuel phase-out, COP President Sultan Al Jaber asserted that he “understood and respected” the science of climate change, Reuters reports. Al Jaber said that reports of him saying there is “no science” that proves a phase-out of fossil fuel production is needed to restrict global heating to 1.5 C, was taken out of context and circulated baselessly. “I am quite surprised with the constant and repeated attempts to undermine the work of the COP28 presidency,” Al Jaber said.

AND AL IS NOT A FAN- Al Gore lambasts COP28 host UAE over soaring emissions:Former US Vice President Al Gore called out the UAE over its increasing greenhouse gas emissions, which he said rose by 7.5% in 2022 from the preceding year, compared to an average increase of 1.5% worldwide, Reuters reports. Moreover, Al Gore criticized the COP28 presidency, saying that the UAE is abusing public trust by appointing the CEO of Adnoc — one of the “largest and least responsible” oil companies in the world — as head of the summit.

SPEAKING OF EMISSIONS- GCCA cuts CO2 emissions by 23%: The Global Cement and and Concrete Association (GCCA) has seen a 23% drop in CO2 emission intensity of cement related material compared to levels in 1990, according to their latest report. The drop is due to the development of carbon capture and storage projects (CCS), the increased use of alternative energy sources, and tech development to produce low carbon cement, the report said.

Global decarbonization projects are in the works: The GCCA is looking to CCS to account for 36% of the global cement industry’s CO2 reductions, with plans to develop CCS plants in Breedon in the UK, Heidelberg Materials in Germany, Holcim in Switzerland, Taiheiyo Cement in Japan, and TITAN Cement Group in Greece. The GCCA’s efforts to cut emissions also include increasing solar power in the US, India, and Taiwan, using hydrogen at a cement plant in Honduras, and having an Indian plant utilize bamboo, a source that India plans to use for biofuel production next year. Other advancements involve swapping the carbon intensive element clinker for calcined clay, making use of non-recyclable waste for cement plants, and rehabilitation of local environments.

STAY TUNED FOR THIS- Canada, Egypt, Brazil to crack down on methane emissions: Canada — the world’s fourth largest oil producer — has released its draft regulations for its oil and gas industry aimed at slashing methane emissions, Reuters reports. The proposed rules will target cutting methane emissions from the polluting industry to prevent 217 mn tons of emissions from being released into the air between 2027 and 2040, Canadian Environment Minister Steven Guilbeault said. Egypt and Brazil are expected to follow suit and issue regulations on methane emissions. The three countries — along with over 147 others — are among the 2021 Global Methane Pledge signatories who have vowed to cut methane emissions by 30% by the end of this decade.

THERE’S A LOT OF SAUDI UPDATES- KSA plans to install 20 GW of renewables in 2024: SaudiArabiaplans to launch renewable energy projects with a total capacity of 20 GW next year, Asharq Business reports, citing Minister of Energy Prince Abdulaziz bin Salman.

Major renewable energy projects: KSA is set to tender a new contract for the construction of four high-efficiency gas-powered energy stations with a production capacity of 7 GW. Different projects with a total capacity of 21 GW are also underway as part of the Saudi Green Initiative, which is implementing 80 new initiatives and has achieved over USD 188 bn in investments. The country’s renewable energy production has reached 2.8 GW so far.

Saudi goes all in on carbon capture: KSA has plans to develop two industrial centers, one focused on carbon capture and storage (CCS) with a production capacity of 44 mn tons annually, and the other is a carbon capture and utilization (CCU) facility with a capacity exceeding 1 mn tons yearly.

There’s also news from Neom: Construction work on phase one of Neom’s mega greenhydrogen plant has been completed, Asharq Al Awsat reported, citing statements by Energy minister Prince Abdulaziz bin Salman at the Saudi Green Initiative forum at COP28.

ALSO- The kingdom has allocated investments worth USD 188 bn to address the challenges of climate change, Al Arabiya reports, quoting Foreign Minister and Climate Envoy Adel Al Juber as saying on the sidelines of the Saudi Green Initiative Forum. “We’re working on multiple projects to combat climate change, including carbon capture [projects],” he said.

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CIRCLE YOUR CALENDAR-

Saudi Arabia will host theFuture Minerals Forum from Tuesday, 9 January through to Thursday, 11 January in Riyadh. The event will bring nations and private sectors together to enable the creation of resilient mineral value chains in the resource rich regions of Africa, Western Asia, and Central Asia. The forum will hold a ministerial roundtable with over 60 countries being represented., and delegates will discuss global critical mineral strategies as well as an international exhibition with over 150 exhibitors and industry sponsors.

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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