Good morning, folks. It’s a big news day for Egypt as the signing pen was busy over the weekend, inking agreements with Scatec, Amea and Orascom. There’s also a fair bit of news coming from Morocco this morning in terms of loans and legislation, but first, the latest on US and EU China tariffs…

THE BIG CLIMATE STORY OUTSIDE THE REGION- US confirms tariffs on Chinese imports: The US has confirmed that steep tariff hikes on Chinese imports, including a 100% duty on EVs, will go into effect on 27 September. Despite industry complaints the move could disrupt supply chains, US officials argue that these "tough, targeted" measures will reduce reliance on Chinese supplies and counter China's market dominance. The tariffs will target key renewable energy components including solar cells, semiconductors, and EV batteries in a bid to protect domestic US industry from China's imports propped up by state subsidies. The action also maintains Trump-era tariffs on USD 300 bn worth of Chinese goods, while offering temporary relief for US port operators and medical suppliers.

ICYMI- The Biden administration has postponed its final decision on imposing the tariffs multiple times, citing a statement from the US Trade Representative’s Office (USTR). The tariffs were initially set to take effect on 1 August.

The story made headlines in the international press: Reuters | The New York Times | Bloomberg | CNN

ON A RELATED NOTE- The EU rejects Chinese EV price adjustments, tariffs likely to increase: The European Commission has rejected price adjustment offers from Chinese EV makers aimed at avoiding increased tariffs, following a probe into Beijing's subsidies, Reuters reported on Thursday. The tariffs, which could go up to 50%, are intended to protect European manufacturers from being undercut by low-cost, Chinese EVs. EU member states will vote on the tariffs by the end of October.

China slammed the decision: Despite signs of division within the EU, China has condemned the tariffs as protectionist and hinted at potential retaliatory trade measures, the Financial Times writes. Negotiations are expected during upcoming talks between Beijing and Brussels this week.

WATCH THIS SPACE-

#1- BYD’s planned USD 1 bn EV plant in Turkey is progressing as planned despite China’s warnings to its companies against foreign car production investments, sources familiar with the matter told Reuters last week. Talks of further Chinese investments are still taking place, the sources added. However, carmakers looking to invest in Turkey will have to first notify the Ministry of Industry and Information Technology, Bloomberg reported on Thursday.

China is worried about global expansion: Chinese EV makers have been building factories in countries where they can evade the EU’s recently imposed tariffs on its product and slowing demand in the domestic market, but China’s commerce ministry has warned its automakers against such investments in India, Russia, Turkey, Europe, and Thailand, the newswire reported. The ministry also warned the producers to keep advanced EV technology in China and export knock-down kits — key parts of the vehicle domestically — to then be assembled to their foreign plants, Bloomberg added.

Carmakers are still moving full steam ahead: Chery is in talks with Russian producers to manufacture cars in their plants, Geely is looking for locations in Europe to construct a plant but has not yet settled on local production, and Leapmotor is considering partnering with local firms after already forming a JV with Stellantis for EV production in Poland, Reuters reported.

#2- Kazakhstan looks to boost EV minerals output: Kazakhstan has issued hundreds of critical metal exploration licenses in hopes of attracting foreign investment to boost the country’s exports of critical materials including lithium, cobalt, manganese, nickel, and graphite, Reuters reported on Friday. 487 licenses have been issued this year so far in comparison to 397 throughout all of 2023. The country has already signed supply agreements with the EU and UK, as China limits the export of rare earth supplies and Russia threatens to do the same.

Kazakhstan has the resources: The country has deposits of 90% of the elements and is already a major exporter of ferro alloys, gold, copper, uranium, and titanium. Kazakhstan mines manganese as well and wants to gain 10% of the global market. The country also has 2% of the world’s nickel reserves, but its market share remains low.

#3- EU car lobby proposes delay of emissions targets: The EU car industry lobby is urging the government to use emergency regulation to delay the emissions target set for automakers to comply by 2025, Bloomberg reported on Thursday, citing a draft proposition it has seen from European Automobile Manufacturers’ Association (ACEA).

The rationale: In order to meet the target of limiting the CO2 fleet emission of about 95 grams of CO2 per kilometer per vehicle, carmakers would have to either halt the production of 2 mn cars or be fined up to EUR 13 bn for producing passenger cars and EUR 3 bn for producing vans, the ACEA said in the proposition. The EU car sector can’t meet the target due to “low consumer demand for EVs and unfair competition from third country EV manufacturers,” the group says. To meet the emissions target, EVs would need to account for 20-22% of all sales, but the percentage is stuck at under 15% for cars and even less for vans, the proposition added.

ACEA (unofficially) backs the proposition: A spokesperson clarified the document wasn’t “an ACEA paper,” and has yet to take a formal stance but pointed out on its website that, “The EU automotive industry has invested EUR bns in electrification to put vehicles on the market, but the other necessary ingredients for this transition are not in place and the competitiveness of the EU is eroding.”

COP WATCH-

COP29 host pushes for global energy storage expansion by 2030: Azerbaijan plans to pitch a Global Green Energy Storage Pledge to over 190 countries, aiming to increase global energy-storage capacity sixfold by 2030, Bloomberg reported on Saturday, citing a draft proposal it has seen. The initiative aligns with the G7’s agreement to reach a target of 1.5 TW of energy storage capacity by 2030, which the group signed in April (pdf).

In numbers: Countries around the world would need to boost their energy storage capacities by 158 GW annually through to 2030 in order to reach the proposed target, Bloomberg writes.

IN OTHER NEWS- A new UN report sets the stage for tough COP29 talks: Developing countries need nearly USD 500 bn in financing annually to reach climate goals with as much as USD 6.9 tn needed by 2030, Bloomberg reported on Friday, citing a new report by the UN Standing Committee on Finance.

We can expect intense negotiations in Baku: The report criticizes rich nations for missing their 2020 USD 100 bn per year goal, met two years late. Discussions at COP29 will address the need for substantial public and private sector funding and focus on establishing a post-2025 climate finance target. There is also pressure for higher funding than the UN estimates, with calls for up to USD 1 tn in public finance alone.

THE SCORECARD-

The UAE's clean energy share of the total energy mix hit 27.83% in 2023, moving closer to its 2030 target of 32%, Wam reports. The Emirates’ renewable energy capacity also grew by 70% in 2023, reaching 6.1 GW. As of 2023, the country has invested over AED 45 bn in completed renewable energy projects so far, according to Energy Minister Suhail bin Mohammed Al Mazrouei.

HAPPENING THIS WEEK-

#1- The World Utilities Congress will open its doors today in Abu Dhabi and run through to Wednesday. 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.

#2- The Arab Water Forum is starting in Abu Dhabi today and running through to Wednesday. The event will feature over 60 exhibitors from 24 countries, along with roundtables and speaker sessions, gathering water sector leaders to discuss solutions for clean water and sanitation, with an emphasis on innovation and improving water security.

#3- Saudi’s EV Auto Show is kicking off tomorrow in Riyadh and running through to Thursday. The show offers a platform for participants to learn about the latest EV technologies and services.

THE FINANCE FORUM-

Headlining the EnterpriseAM Finance Forum: We’ll be joined for the first time on stage by a senior government official, who’s joining us to outline a vision for where we’re going as a community and as an economy. The keynote interview will get underway at 9am sharp, and you won’t want to miss our exclusive networking breakfast from 8am.

Among the topics on the agenda, which you can view here:

  • Welcome to the hot seat — top industry CEOs set the tone by addressing the biggest (and toughest) questions of the day.
  • Looking from the outside in — what foreign investors and strategics think about Egypt right now.
  • The only asset class in town — It’s real estate or nothing. We’ll get into the ins and outs of the industry, how it’s financing itself, which areas (and price points) are next, and more.
  • Gazing into that crystal ball — The outlook for dealflow in 2025, from M&A and IPOs to securitization, FX and more.
  • A once in a generation opportunity? — A deep dive into the promise and pitfalls of the emerging energy economy.
  • Do we really love banking SMEs? — With NBFIs and fintech players staking their claims, banks are starting to take the SME market seriously.
  • The NBFI panel — The resilience of the Egyptian consumer is the business story of the decade. How are banks and NBFS players building sustainable businesses? What are the opportunities — and credit worries — in the B2B space?

Haven’t requested an invitation yet? Do it today — space is limited. Tap or click heretolet us know you’re interested.

** IMPORTANT NOTE — If you’ve already received your invitation on email, you *must* click through to confirm you’re attending.

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CIRCLE YOUR CALENDAR-

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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