Good morning, folks. We have a very meaty issue this morning with a lot of ground to cover from green finance to solar to district cooling and much more. Shall we jump right into it?

FIRST, ICYMI- Our Enterprise Saudi edition dove and unpacked a recently published FAQ by S&P Global Ratings exploring whether exposure to high-emitting sectors could pose liquidity and legal risks to GCC lenders.

HAPPENING TODAY-

The ATOMEXPO International Forum kicks off today in Russia and will conclude on Tuesday. This year, the forum's key topic is “Clean Energy: Creating the Future Together” and it will focus on the use of atomic energy in tackling climate change. Participants include global leaders in nuclear power, representatives from international organizations, companies, and experts in the field. A high-ranking delegation from Egypt’s Nuclear Power Plants Authority are among the regional players attending the forum, which will also feature an international congress and an exhibition showcasing goods and services for nuclear industries.

COP WATCH-

COP Troika urges countries to submit NDCs by 2025: The UAE, Azerbaijan, and Brazil — the hosts of COP28, COP29, and COP30 — have sent a letter to the Parties of the United Nations Framework Convention on Climate Change (UNFCCC) urging countries to submit their Nationally Determined Contributions (NDCs)at least nine months before COP30 as agreed at the conclusion of COP28, Wam reported on Thursday, citing a speech made by COP28 President Sultan Al Jaber at the Copenhagen Climate Ministerial. The three host countries committed to submitting NDCs by early 2025 in the letter and said focus should be placed on providing technical support to member states, especially developing countries, to prepare and implement their next-generation NDCs effectively, the news outlet adds. The COP Presidencies Troika was launched in February to work on a roadmap on how to stop temperatures from increasing above 1.5 °C compared to pre-industrial levels.

The move was met with criticism: The letter has been criticized for reframing NDCs as a solution on its own, failing to address how countries can reach these goals and ignoring the core hurdle of the green transition — the need to revamp the financial system to unlock more green funding for developing countries, Argus writes. The EU does not support “reframing NDCs as vehicles for the provision of means of implementation,” Belgium's Climate minister Zakia Khattabi said.

WATCH THIS SPACE-

#1- Acwa Power expects a revenue hit from Morocco: Saudi renewables giant Acwa Power anticipates a USD 47 mn loss in revenues after a leak in the molten salts hot tank of the 150 MW Nooro III Concentrated Solar Project in Morocco’s Ouarzazate led to a forced outage in the plant, according to a Tadawul disclosure. The leak is expected to force an outage until November 2024 for the solar farm in which it holds a 75% stake, with the financial impact projected to be reflected in 2024.

#2- UAE real estate developer Aldar Properties is planning another USD 500 mn green sukuk issuance this year after raising USD 500 mn through its maiden green sukuk issuance last year, CFO Faisal Falaknaz tells The National. The Islamic bonds will be issued under Aldar’s green framework, which targets “more green financing across all [Aldar’s] facilities,” Falaknaz said. Aldar plans to double down on acquisitions, with AED 4-5 bn of equity earmarked to be “deployed into recurring income assets… Logistics is a very important segment that we are very keen on continuing to grow,” according to Falaknaz.

#3- EIB gearing up to finance more Egyptian green hydrogen: The European Investment Bank (EIB) has started due diligence for an unspecified green hydrogen project in Egypt, EIB regional head Guido Clary told Asharq Business on Friday. Clary did not specify whether the bank will be directing funds to one of the numerous projects already in the pipeline or a new one, and added that green hydrogen will be among the main sectors in which the bank will target next year — especially in Egypt’s Suez Canal Economic Zone.

#4- The UAE could become one of Africa’s biggest FDI sources over the next five years, with investments focused on renewable energy, logistics, and agriculture, Bloomberg reported on Thursday. The country made USD 44.5 bn in investment pledges across Africa last year, with key investments in Sudan, Ethiopia, Zambia, and other countries, with a focus on infrastructure development and resource extraction. The growth of UAE’s FDI presence in Africa had jumped two years ago, last year it was still comfortably in the double-digits, but the next two-to-three years we’ll see a return to growth in the thirties and above,” Standard Bank Group CEO Rassem Zok tells the business information service.

The country’s new national biofuels policy has targets: The UAE has announced that its recently announced National Policy on Biofuels targets a 20% increase in biodiesel consumption by 2050, Wam reported Thursday. This will lead to a 75% decrease in the carbon footprint of diesel cars if biodiesel is used entirely. The policy also aligns with the UAE’s goals to produce 700 mn liters of sustainable aviation fuel (SAF) and reach net-zero by 2050.

ICYMI- The policy will introduce a regulatory framework for biofuel distribution, set benchmarks for biofuel production and usage, enforce production standards and mandates for the fuel within the nation. It will also help regulate biofuel trade operations, define uniform biofuel specifications, and oversee production and commerce.

IN OTHER UAE NEWS- Dubai will establish a new Environment and Climate Change Authority, with the goal of “[promoting] sustainable practices across sectors, [preserving] biodiversity, and [expanding] natural reserves and green spaces,” under new directives from Dubai Ruler Sheikh Mohamed bin Rashid Al Maktoum, Wam reported on Thursday. The authority will be tasked to help develop policies to mitigate climate change and boost food security, Wam said. Ahmed Mohammed bin Thani was appointed to head the authority as director-general.

#5- Bahrain plans to run farms on renewables: Bahrain is working on plans to run its farms on renewable energy in efforts to strengthen food security against rising energy prices, according to statements made by the Municipalities Affairs and Agriculture Minister Wael Al Mubarak to MPs, Gulf Daily News reported last week. Bahrain — which has limited arable land — aims to use treated sewage water in irrigation to decrease underground water dependency, and is kickstarting the process to establish hydroponic farms — a technique of growing plants using a water-based nutrient solution rather than soil — in six different regions, to help supply 10-20% of the country’s vegetable using less water, the minister added. “Tenders for two locations in Howrat A’ali and Duraz have been issued while the four other locations are in the process of being registered for soil-less farming projects,” Al Mubarak said.

#6- The world’s first global emissions tax on shipping garners support: A majority of countries attending the International Maritime Organization’s (IMO) two-week negotiations on climate policy are in favor of mandating a global emissions levy starting next year, CNBC reported on Friday following the conclusion of the talks held in London. The levy — which was backed by 34 countries — will help countries achieve the revised emissions targets approved last year which some experts are already doubting its feasibility. The recent upswing in support of the emissions tax — which could rack up USD 80 bn annually — is a significant change compared to the last round of talks in 2023, according to the news outlet. Revenues collected from the tax could be put towards developing low emissions shipping fuels and fund the energy transition of poorer states.

What’s next? Delegates at the IMO are expected to hold talks in the fall to further discuss the different proposals for a carbon levy, including a proposal put forward by Belize and some Pacific Island states for a levy of USD 150 per ton of carbon — the most ambitious suggestion yet. Other proposals include a push to combine a price on shipping emissions with an international emissions standard for maritime fuel. In addition to the Pacific Island states, the EU, Canada, are among a group of 47 countries pushing for the international shipping emissions charge.

#7- The EU is likely to miss its 2030 green hydrogen local production targets due to technical difficulties, stringent EU regulations, and high financial costs, Bloomberg reported on Friday, citing comments made by Engie CEO Catherine MacGregor. Those challenges are hindering the development of large-scale electrolyzers needed to produce green hydrogen, MacGregor explains. While Engie is advancing green hydrogen projects for synthetic aviation fuel and biofuels, and considering electrolyzer projects in the US, Chile, and Australia, MacGregor suggests that the EU's goal may be delayed by at least five years, mirroring Engie's own postponement of its 4 GW electrolyzer target to 2035.

REMEMBER- The EU’s hydrogen import plans have also been questioned recently: A recent study raised concerns about the EU's ambitious yet ambiguous plans to import 10 mn tons of renewable hydrogen by 2030, deeming the target as unrealistic. The analysis suggests that six potential exporter countries, including Egypt, Oman, and Morocco, could only realistically supply 2.6 million tons, falling short of the EU's goal. The report also highlights challenges such as limited export capacity, underdeveloped infrastructure, and environmental impacts on water resources and land use.

#8- The US earmarks USD bns for hard-to-decarbonize industries: The US Department of Energy is set to give out USD 6.3 bn in grants — USD 5.5 bn of which will come from the Inflation Reduction Act — to help heavy-emitting industries decarbonize their production, Bloomberg reported on Friday, citing sources with knowledge of the matter. Details on the projects that will receive funding are scheduled to be publicly disclosed today, Monday, and will include highly polluting industries such as cement, glass, chemicals, metals, and pulp and paper. These industries make up almost 25% of US emissions and are often hard and expensive to decarbonize, Bloomberg writes.

IN OTHER STATESIDE NEWS- Offshore wind is getting a push: Offshore wind developers can now claim an “ energy communities tax credit ” from the Inflation Reduction Act for projects with supervisory control and data acquisition (SCADA) equipment in areas that rely on fossil fuel revenue and are low-income with high unemployment, according to new rules released by the US Treasury on Friday. The subsidy can amount to 10% of the project’s cost on top of the IRA’S 30% credit for renewable energy projects.

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CIRCLE YOUR CALENDAR-

The UAE will host the World Future Energy Summit from Tuesday, 16 April to Thursday, 18 April in Abu Dhabi. The summit will address solutions for development in the transformation of future energy systems. The summit will also feature discussions on recycling, waste-to-energy, and air-to-water trends and progressions.

The UAE will host the Connecting Green Hydrogen MENA event from Tuesday, 23 April to Thursday, 25 April in Dubai. The event will explore green hydrogen partnerships, policies, and practices in the region, in parallel to a showcasing of the latest in the clean fuel’s technology.

Oman will host the Oman Sustainability Week from Sunday, 28 April to Thursday, 2 May in Muscat. The event will focus on exploring investment opportunities and implementing best practices in sustainability within the energy, water, and environmental sectors.

The UAE will host The Electric Vehicle Innovation Summit from Monday, 20 May to Wednesday, 22 May in Abu Dhabi. The event will see industry leaders come together to discuss sustainable mobility and tapping into groundbreaking advancements in electric vehicles while engaging with key decision-makers.

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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