Good morning, ladies and gents. We have a fairly hefty issue this morning with plenty of renewable energy projects updates emerging from Egypt, Bahrain, and Oman along with key policy shifts from the G7. Before unpacking the raft of news, we have a quick programming note…

Enterprise Climate will be taking a publication holiday on Monday in observance of the Egyptian national holiday of Sham El Nessim. We’ll be back in your inboxes on Tuesday morning at our regularly scheduled time.

THE BIG CLIMATE STORY OUTSIDE THE REGION- G7 seal agreement to phase-out coal by 2035: Two days of G7 talks in Turin, Italy have concluded with an agreement by the bloc to phase out unabated (uncaptured) coal use by 2035, in the first explicit pledge for a full phase-out by the group. The agreement allows for an extension of the deadline to align with the global temperature rise limit of 1.5 °C above pre-industrial levels. Britain, France, Italy and Canada set even more ambitious commitments, pledging to phase out coal power by 2030, while Germany and the US are aiming for the same date but have kept their official pledge to 2035. TheG7 energy ministers reached a technical agreement to shut down coal-fired power plants by 2035 on Monday.

Japan was the only G7 member that did not commit to a phase-out date due to its heavy dependency on the fuel, standing as the world's third-largest thermal coal importer in 2023. The East Asian country has been notorious for pushing back against a coal phase out, and was largely responsible for the failure of last year’s G7 meeting in reaching a phase out agreement.

Some argued that the agreement was too watered down: The Beyond Fossils Fuel campaign, a coalition of civil society organizations, criticized the agreement, arguing that it is “intended to coax a coal phase-out commitment from Japan,” due to the wording being too vague, the group said in a statement.

The story made headlines in the international press: Reuters | AP | Bloomberg | The Financial Times | CNN | The Guardian

WATCH THIS SPACE-

#1- Petrol stations and public parks across Saudi Arabia will reportedly soon be required to offer EV charging points, Aleqtisadiah reports, citing sources it says have knowledge of the matter. The potential new requirements will focus in particular on gas stations and parks along highways, Aleqtisadiah’s sources suggest.

The state of play: Saudi officials have been moving forward with EV infrastructure as part of a pushinto green mobility. The Public Investment Fund and the Saudi Electricity Company launched the Electric Vehicle Infrastructure Company (EVIQ) last October to expand fast-charging infrastructure across the Kingdom. EVIQ opened its first fast EV charging stations in Riyadh in January, with plans to set up over 5k fast chargers in over 1k locations in cities across Saudi by 2030, and partnered with Saudi Telecom Company subsidiary Tawal in March to strengthen the kingdom’s EV charging network.

#2-Tunisia sets deadline for solar tender: The deadline for submitting bids for planned solar projects across Tunisia with a combined production capacity of 500 MW has been set to the end of May, TAP reports. This comes as part of a government scheme to issue tenders for larger projects with a total capacity of 1.7 GW. The tenders include two in Metbasta at 500 MW and 100 MW each. Two projects at 50 MW each are also in the final stages in Tozeur and Sidi Bouzid, reports noted in February.

This has been in the works: Tunisia has set a national strategy to develop solar plants with a combined capacity of 500 MW across the country, with a target to have clean energy sources comprise 35% of its electricity mix by 2030, and its unconditional emissions reduction target to slash 27% — 35 mn tons of CO2 — by 2030 compared to 2010 levels.

#3- The EU cracks down on airline greenwashing: The European Commission has launched an investigation into 20 unnamed airlines over allegations of greenwashing after the firms made vague claims of engaging in carbon offsetting or using sustainable aviation fuels, The Financial Times writes. The inquiry — involving regulators from Belgium, the Netherlands, Norway, and Spain — questions the validity of the airlines' assertions that investments in eco-friendly projects or the use of alternative fuels can mitigate the CO2 emissions produced by flying, and gave the airlines a 30-day deadline to submit plans addressing the claims. “The airlines are yet to clarify whether such claims can be substantiated based on sound scientific evidence,” the commission said.

The industry is falling behind on the green transition: The Science-Based Targets initiative (SBTi) reports that no major European airline has submitted a climate goal stringent enough to restrict global warming to 1.5 °C above pre-industrial levels, FT adds. SBTi removed EasyJet, Gol, Iberia, Lufthansa and Wizz Air from the climate plans validation process as they didn't didn't pledge ambitious enough targets.

IN OTHER SAF NEWS-US’ SAF program opens the door for ethanol: The Biden administration has released guidance on its sustainable aviation fuel (SAF) subsidy program, allowing corn-based ethanol to qualify if sourced from farms using climate-friendly techniques, Reuters reports. The program also extends eligibility to soy-based biodiesel if farms implement no-till and cover cropping. Refiners that can reduce emissions by 50% compared to petroleum jet fuel will be eligible for a USD 1.25 per gallon subsidy, while those that exceed this threshold can access an even higher subsidy of USD 1.75 per gallon. The scheme is effective for fuels produced in 2023 and 2024 but may be adjusted or expanded on a later date.

A mixed bag for the ethanol industry: While the Renewable Fuels Association welcomed the announcement, they had hoped for lower threshold qualifications to increase access to the subsidy. “However, RFA believes less prescription on agricultural practices, more flexibility, and additional low-carbon technologies and practices should be added to the modeling framework to better reflect the innovation occurring throughout the supply chain,” the association's president and CEO, Geoff Cooper told Reuters.

Not everyone is confident in the decision: Some environmental groups and researchers question the efficacy of the SAF strategy, citing uncertainty about farm techniques' benefits and the need for additional low-carbon technologies.

#4- Shell pulls out of China’s power market: Dutch fossil fuel giant Shell has announced its exit from China's power markets as part of CEO Wael Sawan's strategy to prioritize profitability, Bloomberg reports, citing an emailed statement. This decision encompasses the entire value chain including power generation, trading, and marketing businesses and has already unofficially gone into effect at the end of last year. “We are selectively investing in power, focusing on delivering value from our power portfolio, which requires making difficult choices,” the company wrote, according to the news outlet.

Shell was a big player in China's green sector: The company opened its largest EV charging station in the world last year in Shenzhen, China, in collaboration with Chinese automaker BYD. Shell signed a non-binding MoU in 2022 with Chinese companies Sinopec and Baowu as well as European chemical producer BASF to conduct feasibility studies on an open-source carbon capture, utilization and storage (CCUS) project in the East China region.The company also inaugurated a 20 MW electrolyser at the Zhangjiakou Integrated Green Hydrogen Hub in Hebei province in January 2022 as part of a JV with two Chinese firms. The industry giant inked an agreement with Chinese green energy project developer Shanghai Electric in 2021 to cooperate on green hydrogen developments and CCUS.

REMEMBER- Shell is making a U-turn away from a green transition: The Shell Energy Transition Strategy 2024 saw the company allocate a greater portion of investments into oil and gas in order to give better returns to shareholders, a move which CEO Wael Sawan has been championing since he assumed the position early last year. The oil giant announced in March that it is aiming to reduce its scope 3 emissions by 15-20% by the end of the decade, down from the previous 20%. The company also dropped its goal of a 45% reduction by 2035 citing “uncertainty in the pace of change in the energy transition.”

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CIRCLE YOUR CALENDAR-

Algeria will host the Global Waste Forum from Tuesday, 7 May to Thursday, 9 May in Algiers. The forum will focus on the latest waste management technologies and bring together industry leaders to explore cooperation on circular economy strategies, renewable energies, and digitization.

Saudi Arabia will host the Saudi Energy Convention from Sunday, 19 May to Tuesday, 21 May in Riyadh. The convention will see energy and utilities industry leaders advance collaborative decarbonization efforts and identify innovation areas. It will also host the Saudi Utilities Convention and Saudi Hydrogen Convention to address the role and challenges of rolling out hydrogen, water and utility projects that are inline with the global energy transition. Over 10k energy professionals and 200 industry speakers will be present at the event.

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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