Good morning, friends. It’s quite a busy start to the week here in the region with loads of renewable energy project updates, a generous splash of green finance, and a look at how our region’s booming skyscraper energy can be put to good use… Shall we?

THE BIG CLIMATE STORY OUTSIDE THE REGION THIS WEEKEND- Climate finance finally surpasses USD 100 bn: Developed countries provided and mobilized USD 115.9 bn in climate finance for developing countries in 2022, exceeding the annual USD 100 bn goal for the first time, according to a statement from the Organisation for Economic Co-operation and Development (OECD). Developed nations have failed to meet the USD 100 bn per year since 2020. Climate investment needs in poor countries may reach up to USD 1 tn by 2025.

The goal will be updated this year: The upcoming COP29 in Azerbaijan will see countries decide on a new goal for how much wealthier nations should contribute to offsetting the effects of the climate crisis in poorer countries. Climate investment needs in poor countries may reach up to USD 1 tn by 2025.

COP28’s Al Jaber welcomed the milestone: “I welcome the news that OECD has announced that climate finance has not only reached USD 100 bn but surpassed it, albeit two years behind schedule,” COP28 president Sultan Al Jaber said in a statement.

The story made headlines in the international press over the weekend: Reuters | Financial Times | France24 | Axios

WATCH THIS SPACE-

#1- Egypt opens the door for the private sector: Companies looking to go green and leverage privately produced renewable energy have until the end of August to send their requests to the Egyptian Electric Utility and Consumer Protection Regulatory Agency (Egyptera), according to a statement. This comes under the first phase of an Egyptera initiative which will allow the private sector to use the state’s electricity grid to transmit electricity through the Egyptian Electricity Transmission Company network to their end clients.

REMEMBER- Egypt has been scaling back its public sector involvement in the renewables sector: The Egyptian government is planning to withdraw from implementing new renewable energy projects and will instead allow the private sector to handle further expansions. The New and Renewable Energy Authority — which currently manages 1.6 GW of renewable energy capacity — will not initiate new projects itself and will only oversee agreements that have already been signed with international firms for more than 5 TW of projects under development.

#2- 39 PPPs up for grabs in Dubai: The Dubai government’s Department of Finance will offer up 39 projects worth AED 40 bn as public-private partnership projects (PPPs), Wam reported last week, citing the budget and planning division’s Executive Director Arif Abdulrahman Ahli. Slated for development over the next three years, the PPPs will span ten sectors including water and sanitation and waste management, Ahli said. Some AED 25.5 bn of the projects will focus on the water and sanitation sector and another AED 5.3 bn of the projects will be geared towards the waste management sector.

#3- The global shift towards renewable energy in major sectors slowed in 2023 due to regulatory gaps, political pressures, and unclear targets, according to an annual assessment (pdf) released last week by Paris-based policy group REN21. Despite the initial boost in renewable ambitions from the Covid-19 pandemic and the Ukraine war, governments have not maintained the momentum, the report concluded.

Public policy is lagging: Only 13 countries, including the US, India, and China, had comprehensive renewable energy policies by the end of 2022, and only 12.7% of their energy consumption came from clean sources, REN21 wrote. Many countries have even reduced their renewable energy targets, with only 17 out of 69 extending them beyond 2024.

Fossil fuel subsidies surged: Fossil fuel subsidies — which hit USD 7 tn in 2022 — are slowing the energy transition, especially in the industrial and agricultural sectors, the report found. Declining fossil fuel prices have also influenced policy making decisions, especially as the cost of clean energy rises. “Governments have basically stepped back from their ambitions, and energy-consuming sectors don't have the economic incentives any more," REN21's Executive Director Rana Adib told Reuters.

Heavy industries have the biggest hurdles ahead: Heavy industries, such as cement and steel, remain difficult to decarbonize due to their high heat requirements, according to the assessment. However, possible solutions include the use of electric arc furnaces, hydrogen, and bioenergy.

#4- Accelerating the adoption of clean energy technologies makes energy more affordable and eases the cost of living, according to the Strategies for Affordable and Fair Clean Energy Transitions report (pdf) by the International Energy Agency (IEA). The report highlights that speeding up the shift to clean energy can significantly reduce the operating costs of the global energy system. It emphasizes that investments in clean technologies like solar PV, wind, and energy-efficient appliances pay off over time, despite higher initial costs.

Fossil fuels are still ahead: The IEA's analysis shows that governments collectively spent USD 620 bn on fossil fuel subsidies while clean energy investments were only USD 70 bn in 2023, highlighting the need for policy reforms to make clean energy more accessible, especially in emerging economies. The findings come as consumers worldwide have spent around USD 10 tn on energy — a 20% increase compared to the previous five-year average.

So what else can be done? The report suggests that targeted incentives and support for low-income households can enhance the uptake of clean energy technologies, allowing for broader access to the associated cost savings. It also warns of the persistent risk of price shocks and the importance of government vigilance in mitigating new risks to energy security and affordability.

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CIRCLE YOUR CALENDAR-

The UAE will host the Bonds, Loans & Sukuk Middle East event from Tuesday, 4 June to Wednesday, 5 June in Dubai. Billed as the Middle East's largest corporate and investment banking event, it serves as a key meeting point for those active in the region's capital markets. Over 1.4k governments, corporates, investors, banks, law firms, regulators and service providers as well as more than 75 expert speakers will be in attendance.

Turkey will host the International Conference on European Energy Market from Monday, 10 June to Wednesday, 12 June in Istanbul. The three-day event will gather experts from scientific, industry, and policy sectors for discussions on various energy market-related topics. The conference covers themes including energy modeling, market design, regulatory policies, and climate change.

Morocco will host the Morocco Energy Week Summit from Tuesday, 11 June to Thursday, 12 June in Marrakech. The event will gather Morocco's leading energy players, companies and developers alongside financiers and implementation experts to discuss the country’s green transition.

Spain will host the Connecting Green Hydrogen Europe conference from Tuesday, 25 June to Thursday, 27 June in Madrid. The event will see around 5k attendees including industry leaders, energy ministers, and executives to explore solutions, new technologies, and transformative advancements to advance the hydrogen industry.

Saudi Arabia will host the Global EV and Mobility Tech Forum from Wednesday, 10 July to Thursday, 11 July in Riyadh. The event will bring together policymakers, NGOs, and startups.

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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