TODAY: A productive COP28 for Jordan + Acwa Power will build Indonesia’s largest green hydrogen facility

Good morning, friends. It’s COP28 “Day of Rest” while delegates and negotiators take a breather from the week’s flurry of activities, but we have a full roundup of everything that went yesterday at the summit.

HERE’S THE COP28 GUIDE: Click here to checkout handyguide (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-

10 December: Food, Agriculture, and Water

10-11 December: Final Negotiations

A BRIEF LOOK AT COPLAND- UN climate chief slams nations over climate posturing: Countries negotiating at COP28 need to agree on committing to resolute action to end the “fossil fuel era as we know it" rather than try to “score points” or play “lowest common denominator politics,” UN climate chief Simon Stiell said yesterday, according to a statement. With the summit nearing its midpoint and the climate talks suggesting different possible verdicts on fossil fuels, Stiell urged governments to give their negotiating delegates “clear marching orders” to meet the climate targets.

MORE BNS FOR RENEWABLES IN THE UAE- The UAE plans to commit USD 100 bn toward clean energy investment over the next eight years, UAE Foreign Trade Minister Thani Al Zeyoudi told Asharq Business. The new financing target is almost double the USD 54 bn the country had pledged by 2030 in a bid to triple its renewables production capacity. The UAE unveiled its renewables strategy back in 2017, setting out a target to source 50% of its power from clean energy sources by 2050. The country’s renewables generation capacity currently stands at 20 GW, Al Zeyoudi noted.

IN AVIATION NEWS- Masdar + TotalEnergies debut Methanol-to-SAF powered flight: A consortium comprising Masdar, TotalEnergies, Airbus, Axens, and Falcon Aviation Services have successfully completed the first flight test powered by sustainable aviation fuel (SAF) produced from methanol on the sidelines of COP28, according to a statement. The UAE General Civil Aviation Authority worked with the companies on the pilot flight.

Why this matters: Methanol isn't among the alcohols in the Alcohol-to-Jet Synthetic Paraffinic Kerosene pathway which was certified in 2016 as meeting international standards for jet fuel. However, the flight used an SAF blend made from olefins, which can bypass the restrictions for obtaining the certificate. This new method can eventually allow for SAF to be produced from renewables (eSAF).

And there’s a new tool to measure SAFs' impact: Illinois-based United Airlines Holdings and other carriers including Microsoft, RMI, and the Environmental Defense Fund launched the SAFc Registry which measures the emissions benefits of new SAFs that airlines blend into jet kerosene, Bloomberg reports. SAF can be made from a variety of feedstocks that have different emissions profiles and need more sophisticated methods to accurately assess the amount of CO2 reduced.

MORE BACKING IN THE COAL EXIT- UAE and Malta join pledge to phase out coal: Malta and the UAE joined the UK-led Powering Past Coal Alliance (PPCA) on Tuesday, vowing alongside 57 other countries to accelerate the transition from coal to clean energy, the PPCA said in a statement. The two countries are the latest to commit after seven other nations, including the US and Cyprus, joined the alliance on 2 December. The UAE has become the first country in the MENA region to vow to abate coal.

UAE and Malta already quit coal: Both countries have joined under the "phase-out date: coalfree" position, while countries including the UK, Portugal, and Hungary took the “phase-out date: before 2025” position, and the US, Singapore, and Kosovo joined under the "phase-out date: after 2025” position, S&P Global reports. The UAE converted its sole coal-fired power plant, the Hassyan power station, to use natural gas back in 2022. Despite 10% of its power being generated from imported coal, Malta phased out coal power in 1995.

WATCH THIS SPACE #1- Korea wants in on Oman’s green hydrogen industry: South Korea is hosting the Korea-Oman Green Hydrogen Strategic Forum from 12 to 14 December in Muscat in efforts to attract foreign investment in Oman’s emerging green hydrogen sector, Oman Observer reports. The forum is set to build on strategic green energy ties between Korean and Omani stakeholders and promote cooperation on green hydrogen infrastructure, hydrogen charging stations, hydrogen commercial vehicles, and waste-to-energy businesses, the news outlet said.

REMEMBER- Korea already has green ties with Oman: In September, Korea Western Power (Kowepco) — along with France’s EDF Renewables — began the construction of a 500 MW Manah solar plant in Oman. In August, Oman’s Energy and Minerals Ministry signed an MoU with South Korea’s Environment Ministry to strengthen and develop bilateral cooperation in the green transition. A consortium led by South Korea’s steelmaking company Posco Group was awarded in June a USD 6.7 bn contract to set up what was described at the time as the world’s largest green hydrogen plant in Oman’s Duqm.

DANGER ZONE- Sovereign wealth funds have stalled when it comes to climate: Despite the world’s sovereign wealth funds sitting on almost USD 12 tn, that cash is not likely to go to climate investments, Reuters reports. Sovereign wealth funds have donated less than USD 10 bn to the climate fight, and countries like Norway and the UAE have mandates requiring predictable returns which limits their options for investment in sustainable projects.

Stagnant levels:Sustainable investments — from renewable energy to recycling and sustainable agriculture — by global sovereign wealth funds peaked at USD 9.6 bn in 2018, and dropped down to USD 9.3 bn in 2022, according to research by the Center for the Governance of Change at Spain's IE University. The world needs USD 125 tn by 2050 to achieve net zero greenhouse gas emissions, Reuters reports, citing UN-commissioned research. The UN and the International Finance Corporation are looking to sovereign wealth funds to fill the USD 4 tn annual developing world funding gap, but the top 10 funds — controlling 90% of assets — are dominated by oil wealth.

Our region is making some moves: Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), is eyeing a USD 250 mn stake in Chinese electric car manufacturer Human Horizons, and it also recently signed a JV agreement with Hyundai Motor Company to establish a USD 500 mn highly automated vehicle manufacturing plant in the kingdom. UAE sovereign fund Mubadala issued a USD 750 mn green bond with an order book surpassing USD 6 bn leading to a 9.1x subscription rate in October.

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CIRCLE YOUR CALENDAR-

Oman will host the Green Hydrogen Summit Oman (GHSO) from Tuesday, 12 December to Thursday, 14 December in Muscat. GHSO is the region’s largest green hydrogen event and will bring together global decision makers across the policy, tech, finance, and industry sectors to discuss sustainable energy solutions. The three-day event features a conference on green hydrogen with over 100 speakers and more than 50 key industry players who will be exhibiting their latest innovations.

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.