Good morning, nice people. The news cycle has picked up as we slide into the weekend, with updates from Saudi Arabia, the UAE, Oman, and Egypt. Let’s dive right in.

THE BIG CLIMATE STORY OUTSIDE THE REGION- There’s no single story shaping the conversation this morning, but the workers’ union at Australian mining firm BHP’s Escondida copper mine in Chile — the world's largest copper producer — began a strike on Tuesday demanding a larger share of the mine’s income, leading to fears that a prolonged work stoppage could disrupt global copper supply and drive up prices. Copper prices have remained stable so far due to weak demand from China.

Not the first time: The union — which represents about 61% of Escondida’s workforce and nearly all frontline workers — has a history of successful strikes, including a 44-day strike in 2017 that significantly impacted global copper prices. The union's strong financial reserves and Chilean legislation, which prevents the company from replacing striking workers, give it substantial bargaining power.

Where things stand now: The union's demand for 1% of shareholder dividends, estimated at around USD 35k per worker, remains a key sticking point. BHP has offered a bonus of USD 28.9k, which the union rejected, maintaining its stance for a larger share. BHP has implemented contingency plans, allowing non-unionized workers to continue operations, though the extent of these operations remains unclear. Reuters and Bloomberg picked up the story.

WATCH THIS SPACE-

#1- Egypt approves more wind power capacity: Egypt’s cabinet has approved a bid submitted by the Orascom Construction-Toyota-Engie consortium to add 150 MW of wind power capacity to their 500 MW wind plant in the Gulf of Suez, according to a statement. The addition will be with the same terms and prices as the original agreement and will be established on an adjacent piece of land where environmental studies were already conducted. The projects are set to come online in 2025.

And allocates land for a new solar project: The cabinet also approved the allocation of 3.8k acres of state-owned land in Qena to the New and Renewable Energy Authority for the development of a new solar energy project, according to a statement. No further details about the project were disclosed.

Big news on the chips and cells front: The cabinet also approved a draft resolution to set up the National Council for the Localization of Chip and Solar Cell Tech Production. The council will be tasked with approving the government’s strategy for localizing the manufacturing of chips and PV cells, updating the strategy as needed, and overseeing the progress of its implementation, as well as working to eliminate any obstacles for investment in the sector and reviewing related legislation. Prime Minister Moustafa Madbouly will head the new council, which will meet at least every two months.

REMEMBER- Earlier this summer, the Egyptian government said it would launch a tender to select an international consultant to develop a strategy to localize the manufacturing of chips and PV cells.

#2- A solar + hydrogen powered skyscraper is landing in Egypt: Saudi industrial group Rawabi Holding’s Egypt real estate subsidiary MagnomProperties, plans to build a USD 1 bn office tower powered by clean energy in Egypt’s new capital, Reuters reports. A quarter of the consumed energy will be produced by solar panels while the rest will be provided by clean hydrogen transported to the building as a liquid. Magnom purchased the land back in 2021 in the city’s business district as a first step to attract international investors.

The details: The company will construct the skyscraper — set to be the first net zero carbon tower in the MENA region — in collaboration with media group Forbes and Chicago-based architects Adrian Smith and Gordon Gill. The skyscraper will stand 50 storeys high and will include advanced cyber security systems, two high speed elevators, and a helipad. The financing will come through debt equity instruments, but whether Magnom will maintain full ownership is to be determined, CIO Ahmed Kassem said.

What’s next: Magnom will begin working on the detailed design of the tower soon and construction of the building is slated to wrap by 2030, said Magnom Executive Director of Projects Karim Dayhoum told the newswire. Identical towers are planned for Dubai and Riyadh in the future.

Background: Magnom inked the MoU with Schneider Electric and H2 Enterprises in June 2023 to transform Forbes International Tower — planned for the UAE, Saudi Arabia and Egypt — into the first of its kind to run entirely on a Liquid Organic Hydrogen Carrier system, according to an earlier statement (pdf).

#3- The World Bank issues Amazon reforestation-linked bonds: The World Bank has issued a USD 225 mn bond aimed at boosting reforestation in Brazil's Amazon rainforest, marking its largest outcome bond to date, according to a statement. Outcome bonds are a new type of bond issued by the World Bank that “directs finance to a specific project or activity and in turn makes a portion of the return on the bond contingent on the success of that project or activity,” the bank explains.

The details: The nine-year, principal-protected bond links investors’ returns to the creation of carbon removal units from reforestation projects in the Amazon. The bond, which matures in 2033, offers a minimum guaranteed annual return of 1.745%, with potential returns up to 4.362% based on project performance. Approximately USD 36 mn will support Mombak, a Brazilian company working with local landowners to replant native tree species. Microsoft has also agreed to purchase the carbon removal units generated.

The Amazon rainforest needs the effort: Deforestation in Brazil’s Amazon rainforest increased in July, breaking a 15-month decline achieved under President Lula da Silva. Approximately 666 sqm of jungle were cleared, a 33% rise compared to the same month last year.

WORTH READING-

Big Tech companies are trying to rewrite GHG Protocol in their favor: Polluting companies are misreporting their emission offsets due to the discrepancies that arise from the use of renewable energy certificates (RECs), according to the Financial Times. Under the current Greenhouse Gas Protocol — the global standard for companies and organizations to measure and manage their emissions — companies can use RECs to mislead their green progress when they purchase certificates linked to different times and locations. The rules are now undergoing a once-in-a-decade rewrite with big tech companies at the center trying to lobby for their proposed set of rules. On one end Amazon and Meta support more flexibility in using RECs, while on the other, Google and Microsoft call for stricter regulation. The Greenhouse Gas Protocol reform is set to be finalized by 2026.

WORTH LISTENING TO-

Investors place bets on coal as ESG confidence dwindles: Major companies are choosing to backtrack on their ESG commitments due to its complexity, and are turning to coal and mining investments once again, the Financial Times discusses in a podcast episode. Investor attitudes are shifting towards a focus on profitability — meaning more emphasis on the highly profitable coal and less on ESG — as they realize that it will take longer than expected for the world to go green. This has caused a rift between investors, as some continue to forge ahead with ESG.

REMEMBER- An anti-ESG movement is growing in the US: In June, Republican lawmakers accused Wall Street of “colluding” with climate advocacy groups and forming a “climate cartel” in their bid to shrink corporate America's emissions. Because of the anti-ESG campaign, big asset managers like BlackRock have scaled back their climate commitments. You can read more about it in our comprehensive report on ESG divestment.

DANGER ZONE-

Global banks far off from achieving climate targets: Global banks are off track to achieve their net-zero targets, and are setting unambitious green targets, analysis (pdf) by the World Resources Institute (WRI) found. As a result of the banking industry’s profit-focused approach, the emissions portfolio of banks around the world are set to be three times the benchmark by 2030. The auto sectors’s reported portfolio emissions were on average 28% higher in 2022 than they should have been to align with 1.5 °C targets.

Behind the numbers: The WRI’s study looked at 25 of the world’s biggest lenders — including JPMorgan Chase, Mitsubishi UFJ Financial Group, and BNP Paribas — and measured their portfolio emissions between 2019 and 2022 across six sectors — oil and gas, power, automotive, aviation, cement and steel. The researchers then compared the numbers to 1.5 °C decarbonization pathways and also accounted for the banks’ 2030 emissions reduction targets.

THE SCORECARD-

Canada’s wildfires contributed 2 bn tons of CO2 in 2023: Canada’s 2023 wildfires, the most intense on record, produced nearly 2 bn tons of CO2, equivalent to a decade’s worth of emissions in normal conditions, The Guardian reports, citing data from the State of Wildfires report(pdf). These fires, driven by the climate crisis, accounted for about a quarter of global wildfire emissions last year and burned an area six times greater than average. With forests burning more often, the ability of vegetation to absorb carbon is decreasing, making wildfires a growing contributor to the climate crisis.

It’s not just Canada: Wildfires globally emitted approximately 8.6 bn tons of CO2 in 2023, surpassing the annual emissions of the US from all sources, The Guardian writes. Brazil’s Amazonas state experienced record-high wildfires due to severe drought, while fires in Hawaii and Texas resulted in over 100 deaths. In the EU, the largest single fire ever recorded burned 900 sqkm in Greece. Even typically fire-resistant areas, like wetlands and rainforests, are now at higher risk due to unprecedented droughts.

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CIRCLE YOUR CALENDAR-

The UAE will host the World ESG Summit from Tuesday, 20 August to Wednesday, 21 August in Dubai. The summit will gather experts and industry leaders to explore new ways to integrate Environmental, Social, and Governance (ESG) principles into business practices.

Turkey will host the International Conference on Clean and Green Energy Engineering from Saturday, 24 August to Monday, 26 August in Izmir. The event will gather researchers and professionals to share advances in clean energy. It will also offer a platform to discuss the latest research, practices, and applications in clean and green energy engineering.

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, innovators, and 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.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.