Good morning, wonderful people. We have a relatively busy issue to close out the week, so let’s get to it.

THE BIG CLIMATE STORY- Acwa Power is selling down its stake in two wind projects in Uzbekistan, handing a 35% stake in the projects to China Southern Power Grid International for nearly SAR 600 mn.

^^ We have the details on this story and more in the news well, below.

THE BIG CLIMATE STORY OUTSIDE THE REGION- Lab-grown meat gets regulatory green light in the UK: The UK has become the first European country to approve lab-grown meat after its Animal and Plant Health Agency and the Department for Environment, Food and Rural Affairs greenlit Meatly’s chicken product for pets. The lab-grown pet food is made by cultivating cells from a chicken egg with vitamins and amino acids. The approval marks a significant step towards reducing the environmental impact of the pet food industry, which has a climate footprint similar to that of the Philippines alone. Research indicates that 50% of pet owners would consider feeding their pets cultivated meat.

What’s next? The company has raised EUR 3.5 mn and expects to secure an additional EUR 5 mn in its next fundraising round. The UK government is also exploring ways to fast-track the approval of cultivated meat for human consumption.

The story made headlines in the international press: Bloomberg | The Financial Times | The Guardian | The Telegraph

WATCH THIS SPACE-

#1- UAE-based Al Nowais’ AMEA Power received approval from the Egyptian cabinet to expand its renewable energy projects in the country by next summer, according to a statement. The expansion will see AMEA up its renewable capacity in the country by 2 GW.

Remember: AMEA Power is currently working on 1 GW-worth of renewable energy projects in Egypt, including the 500 MW solar plant in Abydos, which is set to begin operations by the end of September, as well as a 500 MW wind farm in Ras Ghareb that is slated for completion mid-2025.

Part of a bigger plan: The UAE and Egypt are working to introduce some 4 GW of renewable energy into the national grid by next summer in a bid to help Egypt meet heightened energy demand.

#2- EU green hydrogen targets deemed “unrealistic” by European audit body: The EU is unlikely to meet its 2030 goals for producing and importing 10 mn tons of renewable hydrogen each, according to a new report by the European Court of Auditors. The auditors criticized the European Commission for setting overly ambitious targets without robust analysis and for failing to align member states’ ambitions. Despite the commission’s efforts to establish a legal framework, investment decisions have been delayed due to uncertainties in supply and demand. The report also points out that EU funding for hydrogen projects is scattered across various programs, making it difficult for companies to access the necessary resources.

The plans have been in question: A study commissioned by European environmental NGO Transport & Environment also cast doubt on the EU’s green hydrogen plans. The study attributed the doubt to a lack of infrastructure, limited export capacity, limited water and land resources, and the obstacles facing e-fuels regulations which ban the use of any fossil carbon for e-fuel production from 2041.

The commission’s response: “Our work is far from finished … We now have to accelerate the deployment and uptake of renewable and low-carbon hydrogen in Europe and further develop this emerging market,” the commission said in a statement to Bloomberg.

#3- Global investment in fusion energy is growing at a slower pace for the second year in a row in 2024, Reuters reports, citing a survey by the Washington-based Fusion Industry Association. Investments this year grew more than USD 900 mn, but this pace of growth falls short of USD 1.4 bn growth last year and USD 2.8 bn in 2022. Some 89% of companies surveyed said they expect fusion to add electricity to the grid by the end of the 2030s but 66% expect funding to be an obstacle. Fusion investment did, however, see a 57% jump from public funding for private fusion companies.

SOUND SMART- Nuclear fusion is a reaction that could potentially generate unlimited energy by fusing atoms’ nuclei — as opposed to splitting the nuclei in a conventional nuclear fission reaction. It could generate four times more power per kg of fuel than fission reactions and nearly 4 mn times more energy than burning oil or coal while producing virtually no carbon and no radioactive waste.

REMEMBER- Nuclear fusion is the newest hype in clean energy: US Special Envoy for Climate John Kerry launched an international plan to accelerate global fusion energy development at COP28 a month after the US and the UK inked an agreement to accelerate nuclear fusion technology. Lots of research breakthroughs for the fuel were achieved this year, including one lab in California that was able to yield a reaction that generated more energy than the initial input used to ignite it, and another research that set a new record for nuclear fusion power production, generating 69 megajoules from just 0.2 milligrams of fuel. The US rolled out its vision for developing fusion technology by 2030 last year, while the UK plans to kick off operations on the world’s first fusion power plant in the 2040s.

WORTH WATCHING-

Once a beacon of hope, whatever happened to ESG’s popularity? ESG investing popularity has gone quiet recently after gaining immense popularity when it first came on the scene, the Financial Times reports (watch, runtime: 27:56). Greenwashing concerns, political pressure, lack of profitability, geopolitical conflict, and a lack of regulation are among the main reasons for the movement’s downfall, according to the FT explainer, which features comments from experts in the industry. The explainer recaps ESG’s rise and fall since 2015, and theorizes that the wave could be evolving into a new approach to green finance that might shift its landscape. Read all about ESG divestment and political pressures it faces in our handy explainer.

DANGER ZONE-

Water scarcity is hitting Tunisia hard: Tunisia’s drought severity has gone up eight percentage points since 2022 to 77% from 69% in 2022, Independent Arabia reported, citing a survey by One to One Research and Polling Institute. Drought severity in Tunisia stood at 45% in 2018. Some 55% of Tunisia’s citizens are forced to reduce their water consumption or seek out alternative sources, and are thus urging their government to improve water infrastructure as their quality of life is significantly reduced. The study reports that 8% of citizens have had to move residences to find better access to water.

Certain groups are more heavily impacted: Lower income social groups are most affected given that their main source of household water is from the tap, the survey finds. Residents of rural areas are being forced to ration their water and diversify their supply sources, while farmers are also bearing the brunt of the shortage, with 64% experiencing crop failure, and many having to alter their livestock raising and grazing methods including changing the type of crops they plant.

Tunisia is trying to address the problem: Tunisia received a USD 1.9 bn IMF loan package last year to build climate resilience. Tunisian authorities said they will support startups that are addressing the issues of water scarcity and drought through innovations in water reuse. The country also launched an InterministerialNetwork for Ecological Transition to monitor climate resilience progress, including mitigating desertification and building drought resilience.

REMEMBER- The country is no stranger to climate-driven troubles: The World Bank forecasts 71% of climate-related GDP losses in Tunisia by 2050 will be attributable to water shortages, noting inaction to shore up water supplies and step up its flooding and coastal protections could drop the country’s GDP up to 3.4% — translating to USD 1.8 bn annually — by 2030.

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CIRCLE YOUR CALENDAR-

The UAE will host the World ESG Summit from Tuesday, 20 August to Wednesday, 21 August in Dubai. The summit will gather experts and industry leaders to explore new ways to integrate Environmental, Social, and Governance (ESG) principles into business practices.

Turkey will host the International Conference on Clean and Green Energy Engineering from Saturday, 24 August to Monday, 26 August in Izmir. The event will gather researchers and professionals to share advances in clean energy. It will also offer a platform to discuss the latest research, practices, and applications in clean and green energy engineering.

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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