Good morning, folks. We have a compact issue this morning with big M&A updates from OCI Global and a smattering of financing stories to unpack.

THE BIG CLIMATE STORY OUTSIDE THE REGION- There’s no single story shaping the conversation this morning, but Swedish battery developer Northvolt is set to cut costs with layoffs and unit sales amid a slower growth in EV demand, according to a statement. Northvolt said following a strategic review that its focus on sustainable large-scale cell manufacturing would require changes to the size of its workforce. “No final decisions have been made on the precise nature of any resizing,” the company said, saying it aims to “ensure that every effort is made to minimize the need for redundancies.”

A scale back on expansion: Northvolt said it plans to place operations at its Northvolt Ett Upstream 1 cathode active material production facility in Sweden “into care and maintenance until further notice.” It also said it will enter talks with future investors to capitalize the production of battery systems and packs in Poland. It also plans to integrate its California-based subsidiary Cuberg into its operations in Sweden. The story grabbed ink in Reuters, Bloomberg, Financial Times, and CNBC.

WATCH THIS SPACE-

#1- Qatar Investment Authority (QIA) is reportedly seeking the Spanish government’s approval to increase its stake in Spanish utility provider Iberdrola to over 10%, up from the current 8.7% shareholding by the Qatari sovereign wealth fund, Spanish news outlet Okdario reported. No further details were provided on the talks, but Okdiario is suggesting that the QIA wants to be a part of the decision making by the Spanish firm.

QIA and Iberdrola go way back: The QIA’s direct investment arm Qatar Holding became Iberdrola’s largest shareholder in 2011 after it acquired a 6.2% stake valued at EUR 2.2 bn the company. It has since upped its shareholding in Iberdrola. QIA also invested USD 740 mn in 2021 to acquire c. 3.7% of common stock issued by Avangrid — Iberdrola’s controlled subsidiary in the US.

The two partnered on the energy transition in Qatar: Iberdrola and QIA partnered in 2022 to advance the digitalisation of Qatar's electricity sector through the Iberdrola Innovation Middle East center in Doha. The collaboration aimed to enhance solutions in both public and private sectors, focusing on smart grids, renewable energy integration, and energy efficiency.

REMEMBER- QIA is boosting its green portfolio: QIA — which landed a USD 5 bn loan for green investments in late 2022 — acquired a 2.7% stake in India’s Adani Green Energy for c. USD 474 mn in a block transaction last year. It also invested EUR 2.4 bn in German utilities provider RWE in a debt-to-equity swap to own 9.09% of RWE and led a EUR 250 mn series D investment round for Paris-based biotech company Innovafeed in 2022. More recently, QIA invested USD 180 mn in Dublin-based critical minerals investment company TechMet last month.

#2- China to expand carbon market to steel, aluminum, and cement by year-end: China is set to expand its carbon trading market to include steel, aluminum, and cement industries by the end of 2024, Bloomberg reports, citing statements by China’s Ecology and Environment Minister Huang Runqiu. The move comes under efforts by Beijing to help producers of those industries handle the incoming Carbon Border Adjustment Mechanism (CBAM) from the EU starting 2026. The plan sees the addition of seven more sectors to the country’s three-year carbon market — which currently covers about 2.2k power utilities — to help China cover 70% of its total emissions by 2030.

REMEMBER- CBAM is the world’s first CO2 border tax: The EU launched the first phase of the world’s first carbon border tax last year, requiring importers to report emissions from products sold in Europe or risk fines. The CO2 levy will require firms importing steel, cement, aluminum, electricity, fertilizers, and hydrogen into the EU to report CO2 emitted during manufacturing, and eventually charging pollution fees on those products by 2026. The planned tariff has caused disquiet among trading partners, especially Turkey, Ukraine, China, and Russia.

ALSO- China is looking to Norway for green energy cooperation: China is open to cooperating with Norway on green energy, environmental protection, and electric vehicles, Chinese President Xi Jinping told Norwegian PM Jonas Gahr Stoere during a meeting in Beijing, Reuters reports.

#3- The US is looking to establish a sovereign wealth fund: The Biden administration is considering setting up a sovereign wealth fund to make investments in strategic sectors, Financial Times reported earlier this week, citing statements by an unnamed White House official. The official said the initiative, led by senior officials from the White House, aims to provide the US with flexible capital to compete with geopolitical rivals such as China and Russia.

Behind the move: The proposed sovereign wealth fund comes as the US “lacks a pool of patient and flexible capital that could be deployed at home and abroad to advance strategic interests . . . at the pace and scale needed for the US to prevail in a contested geopolitical environment,” the official said. The official added that the fund could support supply chain resilience and finance “illiquid but solvent companies that need greater scale to compete against [China] rivals.” The fund could also inject capital in specialized shipbuilding, nuclear fusion and critical minerals, the official said.

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CIRCLE YOUR CALENDAR-

The UAE will host the World Utilities Congress from Monday, 16 September to Wednesday, 18 September in Abu Dhabi. The event will gather global energy leaders, policymakers, and other industry professionals from the power and water utilities value chain to discuss industry trends and challenges.

Saudi Arabia will host the EV Auto Show from Tuesday, 17 September to Thursday, 19 September in Riyadh. The show offers a platform for participants to learn about the latest EV technologies and services.

Tunisia will host the Decarbomed Forum from Tuesday, 24 September to Wednesday, 25 September in Tunis. The forum will showcase innovative solutions for transitioning to carbon neutrality in Tunisia and the Mediterranean region, focusing on helping businesses take advantage of new tech, renewable energy services, and green financing mechanisms to decarbonize operations.

The UAE will host the Green Steel Summit from Wednesday, 25 September to Thursday, 26 September in Dubai. The event will bring together steel industry professionals and decision makers to discuss market intelligence and the latest technological developments in sustainable steelmaking.

Egypt will host the Portfolio Egypt conference on Monday, 30 September in Cairo. The event aims to enhance cooperation among Arab stock exchanges and will cover crucial topics including market integration, product diversification, carbon markets, and regional debt markets. It will aim to outline recommendations to strengthen regional financial markets.

Egypt will host Cairo Sustainable Energy Week from Tuesday, 1 October to Thursday, 3 October in Cairo. The event will bring together policymakers, companies, and experts to discuss collaboration on the renewable energy transition across 17 Arab countries.

The UAE will host the World Green Economy Summit from Wednesday, 2 October to Thursday, 3 October in Dubai. The summit will promote the push for a green economy and will offer a platform for international entities to collaborate on sustainable development, financing, and policymaking.

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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