EBRD to launch climate risk tool with QNB for Egyptian SMEs

GREEN FINANCE-

EBRD introduces climate risk tool for sustainable financing in Egypt: The European Bank for Reconstruction and Development (EBRD), in partnership with QNB Egypt, is piloting a climate-risk assessment tool tailored to Egyptian conditions, according to a press release from Friday.

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The details: This tool will enable QNB to evaluate and monitor climate-related risks in its loan portfolio, aligning lending practices with international sustainability standards. The news was announced as part of a 50-50 risk-sharing facility agreement that would see the EBRD contributing EUR 35 mn to support QNB’s on-lending to SMEs.

M&A WATCH-

Marafiq completes acquisition of Veolia’s stake in Jeddah sewage plant: Saudi’s Power and Utility Company for Jubail and Yanbu (Marafiq) has fully acquired France’s Veolia Middle East’s 51% stake in Jeddah Althaniya Operation and Maintenance Company — a special vehicle company owning an independent sewage treatment plant in Jeddah, according to a Saudi exchange disclosure. The special vehicle company — initially a joint venture between Marafiq and Veolia — has a capital of SAR 300k, and the acquisition is expected to generate an additional SAR 75 mn in net income for Marafiq over the 25-year project agreement.

CONSERVATION-

Malaysia’s SFC + Mubadala to collaborate on mangrove rewilding: The UAE’s Mubadala Energy and Malaysia’s Sarawak Forestry Corporation (SFC) agreed to partner on a mangrove rewilding pilot project in Kuching Wetland National Park in Sarawak State, Dayak Daily reports. The pair aim to work on conservation and promoting knowledge exchange between energy producers to ensure their sector does not negatively impact the environment. The pilot project will begin next year.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• Enppi and Honeywell to explore partnership on emission reduction: Enppi — the engineering arm of Egypt's public petroleum sector — signed an MoU with American conglomerate Honeywell during ADIPEC 2024 to explore tech collaboration on greenhouse gas emission reduction. The partnership will include training to enhance technical expertise in the sector. (Statement)
• Egypt to launch natural disaster ins.: The Egyptian Ins. Federation is working with the Financial Regulatory Authority to launch a new ins. tool to cover natural disasters. (Al Dostor)
• Egypt mulls emissions monitoring system for construction sector: Egypt's Housing, Utilities, and Urban Communities Ministry is looking to develop a Monitoring, Reporting, and Verification (MRV) system for waste emissions in new cities. The efforts align with Cabinet plans to ramp up efforts to survey and collect emissions data from across sectors to update the country’s Nationally Determined Contributions plan. (Statement)