Good morning, folks. It’s another busy news week wrapped as we inch closer to the end of February. We have a heap of renewables, decarbonization, and green finance updates to dive into from across the region. But first, the latest on Trump’s bid to take over Ukraine’s minerals…

THE BIG STORY ABROAD THIS WEEK- Ukraine shuns Trump’s bid for its minerals wealth: Ukraine has turned down the US’ bid to take over 50% of the war-torn country’s rare earths and critical minerals and is reportedly working on a counterproposal that will provide the US some access but in exchange for stronger security guarantees, unnamed Ukrainian officials have told several media outlets.

What Ukrainian officials are saying: In addition to concerns about future security guarantees, Ukraine also believes the offer is expensive and wants European investors involved as a guarantee. One Ukrainian advisor to the President warned the Trump proposal could hand US firms control over Ukraine’s resource development for decades without guarantees of investment.

But the US thinks the offer is fair: Trump has said that the minerals wealth takeover would be a form of payback for the USD bns of aid the US has provided to Ukraine. “Binding economic ties with the United States will be the best guarantee against future aggression,” one US official said.

REMEMBER- Ukraine is not known to have major reserves of rare earth critical minerals, but it maintains that its deposits of minerals like uranium, titanium, lithium, and graphite could be worth USD tns, with its Economy ministry claiming the country holds 22 of the 34 minerals deemed critical by the EU. Russia, however, occupies about 33% of its alleged rare earths.

The story made headlines in the international press: AP | Reuters | Washington Post | New York Times | Financial Times | NBC

HAPPENING NEXT WEEK-

Connecting Hydrogen MENA will kick off on Monday, 24 February and run through Wednesday, 26 February in Dubai. The event will bring together over 3k attendees from over 50 countries to discuss collaboration in the sector along with ammonia, manufacturing, and transport.

Oman Climate Week kicks off on Monday, 24 February and runs until Thursday, 27 February in Muscat. The event will center around the steps Oman needs to take to meet its climate goals with over 5k delegates from more than 50 countries expected to attend and access to over 100 speakers.

The Carbon Capture MENA Summit opens on Tuesday, 25 February and wraps up on Wednesday, 26 February in Dubai. The summit aims to support expansion in the carbon capture, utilization, and storage market by gathering policymakers, industry leaders, energy utilities, and investors.

WHAT WE’RE TRACKING REGIONALLY-

#1– UAE is considering investing up to USD 10 bn in over 10 GW of renewable energy projects in Indonesia, Asharq Business reported on Thursday, citing comments by Indonesian National Economic Council Chairman Hut Pangaitan at a Bloomberg event. The investment could be channeled through Indonesia’s new investment fund, Dhanantara, which oversees infrastructure projects and can form JVs with foreign firms, Pangaitan said after meeting with the UAE’s Energy and Infrastructure Minister Suhail Al Mazrouei.

AND- Emirates Global Aluminium (EGA) is planning to explore alternative clean energy developments in Indonesia, the country’s Economic Affairs Ministry said in a statement released last weekend.

REMEMBER- Last week, EGA denied reports that it plans to build a 5 GW nuclear plant in North Sumatra to enhance aluminum smelting capacity, confirming instead that it is interested in exploring other clean energy developments in Indonesia.

#2- Kuwait lines up KWD 1 bn in renewables projects: Kuwait has lined up a pipeline of renewable energy projects worth about KWD 1 bn (c.USD 3.2 bn), with implementation planned over the next three years, Arab Times reported on Wednesday, citing the electricity, water, and renewables minister. Key projects include the Shagaya Renewable Energy Complex’s third and fourth phases with a 3 GW capacity and a 2.7 GW project in partnership with the Public Authority for Partnership Projects. Kuwait aims to boost renewables to 30% of its energy mix within four years.

Background: Kuwait’s Investment Authority proposed a JV with China to develop the third & fourth phases of the Shagaya solar plant back in November. Under the proposal, Kuwait and China would each hold 42.5% ownership, with the remaining 15% going to a Kuwaiti firm. The JV would handle financing — structured as 20% equity and 80% debt — alongside construction, operation, and maintenance, backed by a long-term power purchase agreement.

#3- Saudi is planning mining complexes in Madinah and Eastern Province: Three sites in Madinah and the Eastern Province were designated for mining complexes, the Industry and Mineral Resources Ministry said in a post on X published on Tuesday. The allocated sites include a 108.3 sq km area southeast of Madinah, and two sites spanning 4.8 sq km and 4.3 sq km in Khafji.

REMEMBER- Saudi Arabia has big mining plans: The ministry launched a SAR 685 mnincentive package last year as part of efforts to expand the sector and tap reserves of gold and phosphate, among others. The goal is to attract local and foreign mining investors amid the Kingdom’s push to become a global hub for metals critical for energy transition and become an EV manufacturing hub. The nation’s untapped mineral resources are worth c. USD 2.5 tn, or 90% more than the last forecast in 2016.

#4- Chinese ride-hailing app operator DiDi is mulling funneling co-investments into Egypt’s EV manufacturing sector with other companies and government entities, DiDi’s General Manager for Egypt, New Zealand, and Australia Lida Xu told Al Arabiya. The company hopes that such investments would ultimately help integrate EVs into its Egypt fleet as it did in partnership with BYD in Mexico, but this move would ultimately hinge on the government’s policy support and infrastructure development, Xu said.

#5- Iraq plans to double its electricity imports from Turkey to 600 MW, according to a statement picked up by the Iraqi News Agency on Monday. Representatives from the two countries met on Monday to discuss ways to speed up efforts to achieve this and refurbish the Jezreh-Kesk transmission to accommodate the increased energy supply. Turkey and Iraq had signed an MoU to jointly set up energy production projects, power stations, and transmission lines.

ICYMI- Iraq began operating a 300 MW, 115 km electricity line with Turkey last year as part of its efforts to diversify its energy mix and import energy from renewables. The link — inaugurated at the Al Kesk station west of Mosul — supplies the northern provinces of Nineveh, Salahuddin, and Kirkuk.

#6- Bahrain is gearing up to offer a new tender for a 130 MW solar project near Al Jazair Beach in partnership with the private sector, Bahraini news outlet AlBilad reported on Sunday, citing the Electricity and Water Affairs Ministry. The move is part of the nation’s efforts to increase its renewable power capacity to 300 MW within three years. It is worth mentioning that Bahrain is currently developing an additional 100 MW expansion at Al-Dur renewable energy plant.

WHAT WE’RE TRACKING GLOBALLY-

#1- The world’s first exchange-traded fund (ETF) for catastrophe (cat) bonds is set to debut on the New York Stock Exchange next month, Bloomberg reported on Tuesday. The fund — managed by King Ridge Capital Advisors and overseen by Texas-based Brookmont Capital Management — will track a portfolio of up to 75 cat bonds out of the 250 currently outstanding. King Ridge and Brookmont are still finalizing launch partners and aim to raise USD 10-25 mn in seed capital. The fund will cover risks from US hurricanes and earthquakes to Japan’s typhoons and European windstorms.

Cat bonds are on the rise: The Swiss Re Global Cat Bond Index climbed 17% in 2024 after a record 20% gain in 2023, far exceeding the 8% and 13% for high-yield US corporate bond index in the same years, Bloomberg added. Investors have largely avoided major losses despite recent natural disasters, including Hurricanes Helene and Milton and the LA wildfires. The global market, dominated by US issuances, is valued at around USD 50 bn.

REMEMBER- Claims that cat bonds are “ unfairly benefiting investors at the expense of certain issuers ” surfaced last August after Jamaica’s cat bond was not paid out despite Hurricane Beryl’s devastating impacts.

REFRESHER- What are cat bonds? Cat bonds are high-yield debt instruments designed to help ins. companies raise money in the event of a natural disaster. They are also frequently used to mitigate the effects of climate change — which can exacerbate and increase the frequency of some natural disasters — by transferring a specified set of risks from a sponsor, typically an ins. company to investors.

#2- IMO’s climate levy faces resistance from major economies: KSA, China, Brazil, South Africa, and eight other countries have formally opposed a proposed global levy on shipping emissions, according to a submission (pdf) to the United Nations’ International Maritime Organization (IMO) on 31 January. The countries argued that the levy — basically a greenhouse gas (GHG) tax pricing mechanism — could harm developing nations’ exports, drive up food prices, and deepen global inequalities, The Guardian reported on Monday. They also claimed that the tax is unnecessary for meeting the IMO’s GHG reduction targets.

IN CONTEXT- The proposed levy on GHG emissions has been on the agenda of the 18th IMO meeting, which is set to wrap today. Another round of talks in March is expected before a final decision is taken in April. If adopted, the levy is expected to enter into action globally in early 2027.

Some are on board: At least 46 countries — representing around two-thirds of the global shipping fleet — support the levy, viewing it as a critical tool to raise USD bns annually for climate adaptation in vulnerable regions. Countries including Greece, Japan, South Korea, the UK, the European Commission, and the International Chamber of Shipping, have proposed tax rates ranging from USD 18 to USD 150 per tonne of GHG emissions.

Key disputes: Some industry players argue that the funds should be directed toward helping shipping companies transition to lower-carbon fuels and vessels. However, many developing nations strongly oppose this, insisting that the proceeds should qualify as climate finance to support their emission reduction and adaptation efforts.

THE SCORECARD-

#1- The global ESG sukuk market surpassed USD 50 bn in 2024, with Saudi Arabia, Malaysia, and Indonesia accounting for 67% of the total, Zawya reported, citing data from the London Stock Exchange Group (LSEG). ESG sukuk issuances grew 14.5% y-o-y to USD 15.2 bn last year, accounting for 1.8% of total ESG bonds and 6.2% of total sukuk issuances. Sustainability sukuk nearly doubled during the year, comprising 69% of all ESG sukuk.

Financial institutions issued 55% of ESG sukuk in 2024, with 93% coming from GCC-based banks. Saudi banks snapped four places among the top 10 issuers of ESG Sukuk in 2024, including Rajhi Bank (USD 2.26 bn), Saudi National Bank (USD 850 mn), Saudi Investment Bank (USD 750 mn), and Riyadh Bank (USD 750 mn).

#2- UAE’s Emsteel is now targeting greenhouse emissions reductions of 40% and 30% for its steel and cement units, respectively, by 2030, from a 2019 baseline, according to a press release from Monday. The new targets are part of the company’s new decarbonization strategy that aims to improve energy efficiency, optimize its technologies, incorporate the use of alternative fuels and raw materials in its production processes, as well as fully transition to renewables-powered production by 2030. The strategy aligns with the goal of reaching net zero emissions by 2050.

DATA POINT-

KSA’s Northern Borders province is estimated to hold over SAR 4.7 tn in mineral reserves, the Saudi Mineral and Natural Resources Ministry posted on X. The ministry already issued 29 mining licenses for operations in five ore phosphate mining sites.

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CIRCLE YOUR CALENDAR-

The US will host the UN Development Cooperation Forum from Wednesday, 12 March until Thursday, 13 March in New York. The event aims to act as a hub for global dialogue on furthering the sustainable development goals between government officials, industry leaders, NGOs, private sector entities, multilateral development banks, and other financial institutions.

The UAE will host the Middle East Energy conference from Monday, 7 April until Wednesday, 9 April in Dubai. The event will target 6 product sectors, including smart solutions, transmissions and distribution, renewable and clean energy, critical and backup power, energy consumption and management, and battery and eMobility.

The UAE will host theSolar Energy Storage Future MENA conference on Tuesday, 8 April in Dubai. The conference aims to empower solar energy and storage in the MENA region to align with net zero goals. Planned events include a panel on navigating competitive markets and financing energy efficiency upgrades.

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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