TODAY: QIA sinks USD 180 mn into Dublin-based mining firm

Good morning, folks. The week has finally come to an end with news of European mining investments from the QIA and some lofty investment ambitions from Egypt’s Enara, but first, the US presidential race is pinging in climate headlines…

THE BIG CLIMATE STORY OUTSIDE THE REGION- The new US VP contender is a climate champion: Presidential candidate Kamala Harris’s pick for Vice President is bringing much relief to environmentalists. Minnesota governor Tim Walz has a robust climate record including signing one of the strongest green energy bills into law last year mandating the state to fully decarbonize the energy sector by 2040. His tenure also saw the formation of a climate crisis sub-cabinet, increased investment in clean energy projects, and implementing green policies that aim to reduce emissions and boost electric vehicle adoption. Amongst the policies were updating commercial building codes, banning PFAS (forever chemicals) pollutants, and investing in mass transit and environmental justice. Environmentalists argue that the choice to nominate Walz will energize progressive voters and strengthen Harris’ climate credentials during her campaign.

The story grabbed some ink in the press: Bloomberg | The Guardian | The New York Times | Axios | ABC News

WATCH THIS SPACE-

Masdar expands European access by joining Hydrogen Europe: UAE’s renewables giant Masdar has become a member of Hydrogen Europe — an association representing more than 600 Europe-based companies, organizations, and governments working to promote hydrogen as a clean energy source, the company said. The partnership aligns with Masdar's goal to produce 1 mn tons of green hydrogen by 2030 and developing green hydrogen and its related products, such as ammonia, methanol, and sustainable aviation fuel.

Why is this important? Members of the association benefit from a number of services including funding for new technologies, knowledge exchange between top hydrogen players globally, networking events, continuous updates with the latest developments in the sector, and pro-hydrogen lobbying in Europe, according to its website.

Masdar and the EU have a history of hydrogen collaborations: A consortium comprising Masdar, BP, Infinity Power, and Hassan Allam Utilities signed a Joint Development Agreement (JDA) to explore establishing an export focused multi-phase green hydrogen project in Egypt last month. The consortium signed a framework agreement with the Egyptian government at the Egypt-EU Investment conference to begin technical and commercial feasibility studies. Masdar and Verbund Green Hydrogen GmbH signed an agreement to jointly explore the feasibility of establishing a green hydrogen plant in Spain last December. Masdar also inked an agreement with the world’s largest commercial vehicle manufacturer Daimler Truck to explore supplying liquid green hydrogen to power fuel cell rig trucks in Europe by 2030.

Egypt recommends carbon tariff on polluting imports: The Egyptian Cabinet’s Information and Decision Support Center has recommended imposing a carbon tariff on high-emission imported products, Al Mal reports citing a report (pdf) by the center. This comes in efforts to support the transition to clean energy and strengthen local industries, and encourage green industrial partnerships between EU leaders, BRICS countries, and African nations. The report also suggests that Egypt hosts an annual ministerial meeting in Egypt to discuss enhancing clean energy cooperation with the different economic blocs. Additionally, it emphasizes encouraging private initiatives, such as establishing a Clean Energy Forum to increase regulatory cooperation between Egypt, BRICS, and the EU.

EV funds are experiencing USD bns in outflows: Lower growth forecasts for electric-vehicle focused funds have pushed investors to pull back, causing USD 1.6 bn in global net outflows over the past year, according to Bloomberg, citing a report by EPFR Global. The outflows were higher than total redemptions — money chased in from an investment in a fixed-income security once it matures — in 2023, and comes in stark contrast with the sector’s performance in 2022 when it recorded net inflows.

It may only get worse: If re-elected, presidential candidate Donald Trump vowed to get rid of existing EV policies and to increase tariffs on Chinese EV imports to as much as 200%, which is expected to exacerbate losses further, the news outlet added. JPMorgan analysts also expect Inflation Reduction Act subsidies on EVs and related benefits to be rolled back. Despite campaign support from Tesla CEO Elon Musk, Trump has been known to criticize the EV industry for being a small share of the car market, while claiming that gas and hybrid vehicles will continue to take the lead.

WORTH READING-

Ambiguous jargon gets in the way of climate progress: The phrase “hard to abate” — used to classify industries that are hard to decarbonize such as steel, cement, chemicals, shipping, and aviation — allows those industries to remain complacent in the face of climate change, a Bloomberg article argues. The phrase should be switched to “affordable to abate” instead given that the lack of commercialized tech is the most common reason for the difficulty to transition to green energy, rather than the availability of the technology itself, the news outlet writes, citing comment made by head of technology, industry and innovation at BloombergNEF Claire Curry. “There are no longer any so-called hard-to-abate sectors,” Rathi wrote for BloombergNEF earlier this year, adding that the focus should be on how to garner further investment in research, added policy support, and private sector collaboration to bring down the cost of clean tech.

DANGER ZONE-

#1- Turkey’s record high coal-firing puts climate goals at risk: Turkey’s coal-fired power generation reached a record high last year at 118 TWh, getting in the way of the country’s 2050 carbon neutrality goal, Attaqa reported, citing a report (pdf) by climate data think tank Ember. Coal’s share of Turkey’s electricity mix has doubled over the past decade to 36% (22 GW) and its capacity is expected to surpass 24 GW by 2035, pushing it to become Europe’s second largest coal consumer, the report added. Coal-fired electricity production has risen via both domestic production and imported coal.

Rising coal power generation means rising emissions: Coal accounted for 75% of the 148 mn tons of carbon emitted by Turkey’s electricity sector in 2023, the report found. Coal emissions have risen 6.2% on average per year between 2012 and 2023.

#2- The world’s poorest countries need to triple their power production by 2050 to prevent contributing three quarters of the worlds’ total carbon emissions, Bloomberg writes, citing a new report by the Rockefeller Foundation. The 72 energy-poor nations, mostly in Africa, must produce 8.7k TWh of clean energy annually by mid century — twice the US’s current output — to avoid becoming the biggest polluters in the world. This is equivalent to about an additional 5 TW of generation capacity.

As poorer countries gain more access to energy, the need for green sources becomes more pressing. Currently, 3.8 bn people are “living with insufficient electricity to access modern opportunity and prosperity,” the report stated. Most people in these countries, ranging from India to Vanuatu and Liberia, use less than 1k kWh of electricity per year, a fraction of the average American’s consumption. However, demand is expected to rise rapidly, and planning for abundant clean energy is essential to prevent a climate crisis.

The World Bank is stepping in: The report comes ahead of the World Bank’s launch for its Mission 300 initiative aimed at providing funding to help connect at least 300 mn people in Africa to electricity sources by 2030, on the condition that countries will commit to reforms that allow the roll out of green energy. The World Bank will allocate USD 25 bn of concessional finance, with an additional USD 5 bn from the African Development Bank.

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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.