Good morning, friends. It’s a busy start to the week as September (and the promise of cooler temps?) kicks off, with lots of solar news emerging from Egypt and Saudi and some key COP29 updates. Let’s dive right in.

THE BIG CLIMATE STORY OUTSIDE THE REGION- There was no single story dominating the headlines over the weekend, but the Biden administration has once again postponed its final decision on imposing steep US tariffs on Chinese-made EVs, batteries, semiconductors, and solar cells, Reuters reported on Friday, citing a statement from the US Trade Representative’s Office (USTR). The tariffs — which include a 100% duty on EVs and a 50% duty on semiconductors and solar cells — were initially set to take effect on 1 August, before being postponed to 31 of August. The USTR will make its final decision public in the next few days, with the hikes expected to affect about USD 18 bn in Chinese imports. The story also grabbed ink in Bloomberg.

Over in the EU, new tariffs are already impacting Chinese EVs sales and market share. Chinese automakers registered only 14k EVs across Europe in July, a 9.7% decrease compared to the same month last year, and a 39% drop compared to June, Bloomberg wrote on Friday, citing info by global AI-driven data collection platform Dataforce. This comes In response to the EU’s recent introduction of new tariffs on EVs manufactured in China, which reached 48% for some car brands.

WATCH THIS SPACE-

#1- An energy corridor between Cyprus and Egypt? An energy corridor connecting Egypt and Cyprus to carry natural gas and renewable energy was discussed by Oil Minister Karim Badawi and his Cypriot counterpart Giorgos Papanastasiou, according to a statement published on Thursday. Egypt, Cyprus, and Greece signed a cooperation framework agreement for a planned 2 GW power linkage project between the three countries through the Greek island of Crete, in May 2019.

IN OTHER EGYPT NEWS- Egypt’s government is planning to establish a 50k sqm local EV manufacturing facility, the Higher Education Ministry said in a statement. “Serious steps” will be taken to raise the percentage of local inputs into the manufacture of EVs through the project, with the goal of achieving “self-sufficiency in the field of manufacturing electric cars.”

#2- EGA eyes global expansion with further acquisitions: Mubadala-backed Emirates Global Aluminium (EGA) is targeting further acquisitions in East Asia, Europe, the US, and Mexico after completing two transactions this year, CEO Abdulnasser Bin Kalban told Bloomberg. The Middle East’s largest aluminum producer aims to boost its production capacity by purchasing metal-recycling assets to meet rising demand for recycled metal products in the US and Europe. The acquisitions will also help EGA diversify its customer base and market segments away from China, where there is currently a slowdown in construction, Bin Kalban said.

ICYMI- EGA recently expanded into the US aluminum recycling market by acquiring an 80% stake in Minnesota-based Spectro Alloys. This follows EGA’s acquisition of 100% of Germany’s Leichtmetall Aluminum Giesserei from Leichtmetall Holding https://enterprise.news/climate/en/news/story/238d0c43-4163-4b10-a975-7890b998ad85.

ALSO- EGA’s aluminum recycling plant is set to begin operations in 2026 ahead of schedule, according to the company’s 1H 2024 financial results. The plant will process around 170k tons of aluminum scraps annually into low-carbon aluminum billets to supply local and global markets, and will be located next to EGA’s existing smelter in Khalifa Industrial Zone Abu Dhabi’s Al Taweelah complex. EGA first announced plans for the project in October 2023 and broke ground on the plant last November.

#3- Tabreed eligible for carbon trading with Verified Carbon Standard certification: UAE district cooling firm Tabreed has received the Verified Carbon Standard (VCS) for one of its Abu Dhabi plants from US-based voluntary carbon credit certification body Verra, making it eligible for carbon trading, according to a press release. Verra conducted a year-long assessment of the facility to determine whether its operations bring environmental benefits, determining that the facility has a capacity of 28k refrigeration tonnes and cuts 19k tons of emissions reductions per annum.

A first for district cooling: Tabreed can now trade voluntary carbon credits as an “emissions preventer” marking the first time a district cooling company has earned the title. Tabreed can now apply for the same methodology that earned its verification to other facilities within its portfolio.

#5- Maersk’s first green-powered journey across the Pacific was short lived: The Alette Maersk recently attempted to make its mark as the first container vessel to travel on low carbon methanol fuel across the Pacific Ocean, but was forced to return to using fossil fuels on its return leg to China due to a lack of availability of the green fuel in its final destination to the US, Reuters reported on Thursday.

Big industry players are seeking help: Maersk urged the Biden administration to channel the use of the Inflation Reduction Act to bolster the production and use of green maritime fuel as it has done for trucking and aviation. The company, along with CMA CGM, Hapag-Lloyd, and MSC have come together to present a plan to the International Maritime Organization to tax shipping carriers that stand to gain a competitive edge from cheaper fossil fuels.

Maersk is not the only one struggling to keep up the green methanol momentum: Renewables group Orsted backtracked on plans to build Europe’s largest e-methanol plant due to market growth occurring more slowly than expected, Reuters added. Low-carbon methanol’s cost of production has been one of the main obstacles impacting the fuel’s adoption, reaching 2-3 times higher than the cost of producing its fossil fuel alternative.

COP WATCH-

#1- COP29 negotiations at impasse over climate finance target: As COP29 creeps closer, developed countries are still divided on what the new target for offering green funding to developing countries should be, Reuters reported Saturday, citing a negotiations document from the UNFCCC. The document outlines seven possible options to replace the current USD 100 bn annual commitment from wealthy nations. Developing countries are pushing for a significantly higher funding goal, while donor countries argue that a substantial increase is unrealistic due to strained national budgets.

Opinions are split across different regions: Arab nations are supporting a proposal that calls for developed countries to provide USD 441 bn in grants annually, aiming for a total of USD 1.1 tn from all sources, including private finance. Another proposal, favored by the EU, sets a broader funding target of over USD 1 tn annually, incorporating domestic investments and private funding, but with a smaller portion provided by wealthier countries.

Some are calling for oil producing developing countries to enter the equation: Canada has supported a plan suggesting that contributions should be based on per-capita emissions and income, which could potentially affect nations such as the UAE and Qatar. The EU also insists that China — the world’s biggest polluter — contribute to this new goal, which China has rejected based on its UN classification as a developing country.

#2- US-China climate talks are happening this week: US Senior Advisor to the President for International Climate Policy John Podesta is scheduled to meet China’s Special Envoy for Climate Change Liu Zhenmin in China this week to discuss ways of reducing global emissions and increasing funding for developing nations, Bloomberg reported last week. Podesta and Liu will focus on establishing post-2025 funding goals for the green transition in developing countries, a contentious issue ahead of COP29. The two will also solidify cooperation on energy transitions by addressing a broader range of greenhouse gasses beyond CO2.

REMEMBER- Podesta + Liu have plans for COP29: The meeting between two of the world’s largest greenhouse gas emitters will build on their previous talks in May, where they had agreed to co-host an event on methane and other greenhouse gasses reduction at COP29 in Azerbaijan. The pair also discussed Chinese overcapacity of solar panels, EV batteries, steel, and coal power — which has been an area of contention for some time — and agreed to improve monitoring and standards of methane emissions controls.

#3- UK to crack down on emissions at COP29: The UK will likely unveil stronger emissions reductions pledges at COP29, months ahead of the deadline set by the Paris Agreement for countries to disclose their Nationally Determined Contributions by February of next year, The Guardian reported last week. The move — announced by the UK’s Secretary of State for Energy Security Ed Miliband, and supported by Prime Minister Keir Starmer — comes in efforts to mobilize similar action from other countries. Miliband has sought out advice on the new goals from the Climate Change Committee whose recommendation is likely to be revealed before October.

#4- COP29 to launch transparency platform during upcoming dialogue: The COP29 presidency is planning to launch the Baku Global Climate Transparency Platform (BTP) during the upcoming High-Level Dialogue taking place tomorrow, according to a statement published on Thursday. The BTP aims to increase transparency and confidence leading up to the climate summit by assisting members in finalizing their biennial transparency reports under the Paris Agreement’s Enhanced Transparency Framework, and maintaining those efforts — including support for developing countries — beyond 2024.

THE SCORECARD-

Global electricity generation from solar farms has consistently outperformed wind farms since May, marking the longest period ever where solar power has been the leading source of utility-scale renewable electricity worldwide, Reuters reported Thursday, citing energy think tank Ember. Solar electricity generation surpassed wind by 1.65 terawatt hours (TWh) in May, and in June, the gap widened to 9.57 TWh. Data has not been released for July and August yet, but this trend is expected to continue with solar likely maintaining its lead until seasonal changes favor wind power in the winter.

Solar won’t stay on top for long: Although solar has grown twice as fast as wind over the past five years on the back of lower costs and quicker construction times, wind farms’ ability to generate electricity around the clock will likely see them regain their position as the top renewable energy source annually, especially as large offshore wind projects come online in the coming years. Wind generation, which typically peaks during the winter months due to higher wind speeds, is projected to be at least 30% greater than solar for the full year of 2024, the newswire wrote.

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CIRCLE YOUR CALENDAR-

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, and other 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.

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 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.