Good morning, folks. Another week has come to an end as January comes to a close. On the docket this week? A pile of green financing, solar, green hydrogen and wind updates as we round up the regional climate industry’s activities over the past seven days. First, as expected, the US climate-denier-in-chief has made his first moves…

THE BIG STORY ABROAD THIS WEEK- Trump pulls the plug on US climate policy: US President Donald Trump issued sweeping executive orders on his first day in the White House, reversing key environmental initiatives and prioritizing fossil production. Trump ordered federal agencies to stop spending from Biden’s flagship climate action programs, putting over USD 300 bn of financing contracts under a freeze for review, according to an executive order. He also ordered the elimination of EV subsidies and asked regulators to revise recent emissions standards. Rewriting the rules could take months to finalize, leaving automakers in regulatory limbo. A freeze on federal permits for wind projects and new offshore leasing was also signed into effect, along with a withdrawal from the “ one-sided” Paris Accords and a rollback on US financial commitments to international climate regimes, according to a separate statement. The withdrawal is unlikely to materialize until next year.

Others are stepping in: Former New York Mayor Michael Bloomberg and other backers pledged to foot the US’ financial obligations to the UN Climate Change Secretariat in response to Trump’s move, according to a press release on Thursday. Bloomberg Philanthropies made similar commitments in 2017 and 2019.

Market reax- Existing wind projects, including Orsted’s, are unlikely to be affected, though the Danish developer’s stock fell 17% after announcing USD 1.7 bn in impairments on its US operations, Bloomberg wrote on Monday. Italy’s Prysmian has also scrapped plans for a US wind cable plan for weak demand, Reuters reported on Tuesday.

The story made headlines in the international press: Reuters | AP | The Financial Times | The New York Times | Bloomberg | Axios | CNN | ABC | The Guardian | BBC

HAPPENING NEXT WEEK-

Bahrain will host the Sustainability Forum Middle East from Tuesday, 28 January to Wednesday, 29 January in Manama. Climate experts and decision-makers will convene to discuss a number of issues ranging from decarbonization to supporting SMEs on their path to net zero. Speakers will include GCC government officials and industry leaders from the banking and industrial sectors.

COP WATCH-

Brazil has appointed diplomat André Corrêa do Lago as president-designate of COP30, the Financial Times reported on Tuesday. The former ambassador to Japan and India will have to work without the support of the world’s largest historical emitter, as his appointment came right after the US announced its withdrawal from the Paris Agreement under Trump. Ana Toni — Brazil’s climate change secretary — will serve as chief executive.

WHAT WE’RE TRACKING REGIONALLY-

#1- Egypt plans to issue USD 1-1.5 bn worth of eurobonds or green bonds in international markets as soon as next month, followed by an issuance of sovereign sukuk, to take advantage of rising investor interest in Egyptian debt, a senior government official told EnterpriseAM on Wednesday. The Madbouly government is currently in discussions with international offering advisors to identify the best options for debt issuances in the coming period, the source added.

Sounds familiar? The Madbouly government was looking to issue green bonds and sukuk worth between EGP 5-10 bn (USD 99.4 – 198.9 mn) in 3Q-4Q of FY 2024-2025 back in October in a bid to diversify financing sources.

IN OTHER EGYPT NEWS- Egyptian-Saudi electricity interconnection is almost ready: The Egypt-Saudiinterconnection project is 71% complete, according to a statement released on Wednesday. The first phase of the project — which will see 1.5 GW of the planned 3 GW come online — is set to be completed by June instead of July 2025, with trial operations slated for April.

#2- We have an investment ticket for Masdar’s Philippines plans: UAE renewables player Masdar aims to pour some USD 15 bn into scaling up renewables projects in the Philippines up to 10 GW within a decade, according to a press release published by the Philippine’s Department of Energy last week. Masdar said they intend to develop 1 GW of solar, wind, and battery energy storage systems by 2030, supporting the Southeast Asian country’s goal to reach 35% of renewable energy generation by 2030 and 50% by 2040.

ALSO FROM THE UAE- Adnoc subsidiary Fertiglobe is looking for committed Asian buyers before pushing ahead with a USD 1 bn investment in blue ammonia, CEO Ahmed El Hoshy told Bloomberg on Tuesday. The company hopes it can secure offtakes from Asian buyers — particularly Japan and South Korea under their subsidized climate-friendly fuel imports scheme, El Hoshy added. Fertiglobe inked a EUR 397 mncontract with Hintco last August to supply Europe with 19.5k tons of green ammonia in 2027.

It also began exporting green ammonia to India back in November 2023, using production from its Egypt co-development in Ain Sokhna, on which it also acts as a sole off-taker after securing a 20-year offtake agreement with the partners.

ON THE LEGISLATIVE SIDE- UAE is pursuing new hydrogen legislation: UAE’s Ministry of Energy and Infrastructure is working with the International Partnership for Hydrogen and Fuel Cells (IPHE) on new legislation to support the sustainability of hydrogen production in the country, Wam reported last week. The cooperation is part of IPHE’s push to create hydrogen policies designed for adoption globally.

ICYMI- The UAE launched the National Hydrogen Strategy in July 2023, aiming to produce 1.4 mn metric tonnes of low-carbon hydrogen per annum by 2031 and support the country’s commitment to achieving net-zero by 2050.

#3- France’s TotalEnergies is advancing its 500 MW Sadada solar project in Libya this year, according to a statement released on Sunday from the Libya Energy & Economic Summit. The project – built in partnership with the General Electricity Company of Libya (GECOL) and the Renewable Energy Authority of Libya – is expected to begin commercial operations by 2026. The project – launched back in 2022 – was to reportedly deploy around 1.2mn solar panels to produce around 152 TWh annually, making it Libya’s largest renewable energy project.

Some regional players expressed interest in Libya before: State-backed renewables giant Masdar and Alpha Dhabi’s W Solar Investment were reportedly in talks with the Libyan government last April to develop a 500 MW solar power plant in Libya. The two Emirati players had signed an agreement with the General Electric Company of Libya back in 2022 to invest in building solar plants in Libya, but no details or specific investments were disclosed at that time.

#4- Manara is scoping out Zambia: Manara Minerals — a JV between Saudi’s Public Investment Fund and mining giant Ma’aden — is scanning Zambian minerals projects for potential investments, with a mining agreement likely to happen this year, Zambian Mines and Minerals Development Minister Paul Kabuswe told Reuters last week. Manara has yet to decide which projects it will invest in but has clearly expressed interest, Kabuswe added.

REMEMBER- Manara was reportedly in advanced talks with Canada’s First Quantum Minerals for a 15-20% stake in its Zambian copper and nickel mines, before Japanese trading house Mitsui put down USD 2 bn to outbid Manara. The Zambian government is aware of ongoing talks between Manara and First Quantum but is not in on the details, Kabuswe told the news agency on Thursday.

Gulf investors, including Saudi Arabia and the UAE, are expected to play a pivotal role in Zambia’s push to increase its copper output to some 1 mn tons this year, up from the 720k tons it produced in 2024, Jito Kayumba, special assistant for finance and investment to Zambia’s president, was quoted as saying by Bloomberg last Friday.

ALSO- Saudi Arabia is on the verge of finalizing its investment in Pakistan’s Reko Diq mine in the next few months after an agreement was approved by both sides to bring foreign exchange earnings into Pakistan instead of an overseas account, Pakistani news outlet The News International reported last Saturday, citing a senior official familiar with the talks.

#5- Oman eyes Saudi ties and copper exports: Minerals Development Oman (MDO) is eyeing partnerships with Saudi companies across exploration, extraction, and processing industries as part of its growth strategy, CEO Matar Al Badi told Argaam on the sidelines of the Future Minerals Forum last week. The state-backed miner has already invested over USD 30 mn in exploration, including aerial surveys spanning 16k sqm and more than 7.5k meters of exploratory drilling.

There’s a lot in the works: MDO’s first project is set to launch this year, with copper exports worth around USD 400 mn expected by 2027. The company plans to begin rare mineral exploration this year, building on promising exploration efforts of at least USD 30 mn over the past two years. MDO is also gearing up for a potential IPO in 2028, aiming for a local or global market debut, Badi said.

ICYMI- Last November, MDO’s subsidiary Mazoon Mining broke ground on its copper project in Wilayat of Yanqul — Oman’s largest integrated copper concentrate project — to be operational by 1Q 2027. The company is focusing on the country’s copper reserves in the states of Sohar and Liwa —home to around 2.78 mn tons of reserves — to raise copper ore’s annual production to 800k tons.

WHAT WE’RE TRACKING GLOBALLY-

[wwtt4]#1- The Indonesian Carbon Exchange (IDXCarbon) opened trading to foreign participants at the Indonesian Stock Exchange (BEI), according to a press release published on Monday. The inaugural trading — which included carbon units equivalent to 1.78 mn tons of CO2 from five energy projects owned by state-owned PT Perusahaan Listrik Negara — saw sales reaching 41.8k tons of CO2, with nine international buyers participating, Bloomberg reported. New forest and land-use-based carbon credits will also be added to the offering as soon as March, Environment Minister Hanif Faisol Nurofiq told Bloomberg on Monday.

The price tag: Carbon credits were sold at IDR 96k (c. USD 5.9) per ton for energy efficiency projects (gas plants) and IDR 144k (c. USD 8.9) per ton for renewables (a mini hydro plant), Bloomberg reports.

SPEAKING OF CARBON MARKETS- Carbon traders eye USD 1.5 bn Amazon conservation project: Mercuria -backed nature and biodiversity investment outfit Silvania will launch a carbon market scheme to raise USD 1.5 bn for conserving the Amazon rainforest, Reuters reported on Wednesday. Silvania has pledged USD 1 for every ton in credits purchased, with a cap of USD 100 mn, in a bid to kickstart the campaign.

#2- European banks consider NZBA exit as climate alliances face pressure: European banks are rethinking their commitment to the Net Zero Banking Alliance (NZBA), with some threatening to join their US counterparts’ exodus unless the coalition relaxes its rules, the Financial Times reported on Sunday, citing three people familiar with the matter. Four major Canadian banks also announced their departure from the alliance.

ICYMI-Major US financial institutions — Morgan Stanley, JPMorgan Chase, Goldman Sachs, and Wells Fargo — exited the NZBA. You can read more about the impact in our deep dive into ESG divestment troubles from 2024.

DANGER ZONE-

Thawing Arctic is now a source of carbon emissions: Rising global temperatures have caused over one-third of the Arctic’s tundra, wetlands, and forests — traditionally one of nature’s solid carbon sinks — to release stored carbon into the atmosphere, The Guardian reported Tuesday, citing a study published in Nature Journal. The study examined data found by 200 studies carried out between 1990 and 2020 which revealed that over 30% of the Arctic region became a net carbon dioxide emitter, with the figure increasing to 40% when wildfire emissions are accounted for.

What’s at stake: Natural carbon sinks, along with oceans, forests, and soils, absorb about half of man-made emissions, and Arctic soil alone contains “close to half of the Earth’s soil carbon pool. That’s much more than there is in the atmosphere, the study’s lead author Anna Virkkala told the Guardian.

SCORECARD-

Iran aims for 30 GW of renewable energy in four years: Iran plans to generate 30 GW of electricity from renewable sources over the next four years, potentially saving 11 bn cbm of fuel annually and cutting costs by USD 5 to USD 7 bn, IRNA reported on Wednesday, citing remarks by the Energy Minister Abbas Aliabadi. Around 2.4 GW of this planned capacity will be online next summer, which will bring new additions in this time frame to 5 GW after including previously planned developments, Aliabadi said.

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CIRCLE YOUR CALENDAR-

The Egypt Energy Show will kick off on Monday, 17 February and run through to Wednesday, 19 February in Cairo. The event will bring together over 47k attendees and will highlight Egypt’s role in driving green energy transformation in the region under the theme “Building a secure and sustainable energy future.”

Oman Climate Week will begin on Monday, 24 February and run through to Thursday, 27 February in Muscat. The event will facilitate a dialogue on how Oman can align with the Paris Agreement and the goal to reach net zero emissions. Topics of interest include Climate Mitigation, Climate Adaptation, Climate Finance, Carbon Markets, Climate Technologies, Loss & Damage, and Social Inclusion.

The UAE will host Connecting Hydrogen MENA from Monday, 24 February to Wednesday, 29 January in Dubai. The event will be the largest hydrogen event in the region and will bring together over 3k attendees from over 50 countries to discuss collaboration in the sector along with ammonia, manufacturing, and transport.

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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