Good morning, folks. It’s a brisk read this morning with a heavy dose of green finance and an interesting update on natural hydrogen exploration afoot in Oman, but first, the latest on the global push for nuclear energy…

COP WATCH-

Fourteen major banks worldwide pledge support for nuclear energy expansion: Fourteen of the world’s largest financial institutions will move to back COP28’s nuclear energy pledge to triple global nuclear capacity by 2050 and channel more financing for new nuclear plants, the Financial Times reports. Unlocking financing for new nuclear power has historically been difficult due to high costs and political sensitivities, but the latest move shows a long-awaited attitude shift in line with the energy transition.

Who’s involved? Major players supporting the shift towards nuclear power include Bank of America, Barclays, BNP Paribas, Citi, Morgan Stanley and Goldman Sachs. Abu Dhabi Commercial Bank, Ares Management, Brookfield, Crédit Agricole CIB, Guggenheim Securities, Rothschild & Co, Segra Capital Management and Société Générale are also backing the pledge.

How will they do it? There is no clear roadmap on how the banks plan to support nuclear power, but they could offer increased direct lending and project financing to nuclear companies, the FT writes. Banks may also assist by arranging bond sales or connecting companies with private equity or credit funds. Ahead of the announcement, banks provided non-binding commitments on nuclear energy to private sector partners, a source familiar with the matter told FT.

Background: Led by the US, over 20 countries inked a declaration to triple the world’s nuclear energy production by 2050 at COP28 last December. The declaration — endorsed by countries including France, Britain, Japan, and South Korea — calls for major investments to ramp up the world’s nuclear power capacity which currently stands at 390 GW.

WATCH THIS SPACE-

#1- UAE-based Averi Finance and Amea Power have joined the US-led Power Africa Initiative as private sector partners, with Averi pledging to facilitate USD 5 bn in investments to build 3 GW of power generation projects, construct over 3k km of distribution, and reduce 90 mn tons of CO2 in the continent, according to a statement.

Background:Amea Power is also working on facilitating USD 5 bn in capital to develop 5 GW of renewable energy capacity in Africa by 2030.

#2- Iran looking to initiate nuclear talks at UN General Assembly in New York if “other parties are willing,” Reuters reports, citing comments made by Iraqi Foreign Minister Abbas Araqchi on his Telegram channel. Araqchi will prolong his stay in New York to hold meetings with other foreign ministers regarding a nuclear accord signed in 2015 with six other countries. The Biden administration has said the United States is not ready to resume nuclear talks.

Background:The US withdrew from the 2015 nuclear agreement in 2018 and renewed sanctions against Iran under the Trump administration. Under the pact, Iran agreed to limit its nuclear program in exchange for a lifting of international sanctions. While Iran is still technically bound by the pact, it has curtailed its commitments in response to US sanctions.

#3- Western countries are combating China’s minerals dominance: The Minerals Security Partnership (MSP), a coalition of 14 Western nations and the European Commission, will launch a new financing network in a bid to counter China's stronghold on critical minerals, the Financial Times reports, citing an MSP statement shared at the UN General Assembly. The initiative aims to support critical minerals projects essential for high-tech industries and secure minerals for technologies including EVs. MSP will focus on international collaboration and financial backing, with a notable pledge for a major nickel project in Tanzania, backed by mining giant BHP.

About their strategy: The MSP's strategy includes evaluating 30 additional mining projects, US Under-Secretary of State for Economic Growth Jose Fernandez told the FT in an interview. He highlighted China's monopolistic practices, including overproduction and predatory pricing, which have stifled competition. China currently controls a significant portion of the global processing capacity for rare earths, cobalt, nickel, and lithium. The new initiative seeks to provide alternative financing options, particularly for lower-income countries, to reduce dependency on China.

#4- WTO to look into China complaint over US EV tariffs: The World Trade Organization (WTO) has agreed to assemble a dispute panel to look into China’s complaint against the US’ EV tariffs on Chinese imports, AFP reports. China had asked the WTO to establish an expert panel to resolve the dispute over the EV subsidies the US will soon roll out under the Inflation Reduction Act, in July.

REMEMBER- China first began a dispute settlement against the US at the WTO in March, citing “discriminatory subsidies” that exclude their EVs from the market. The country said it pursued legal action to “safeguard [their] legitimate interests … and maintain a fair level playing field of competition.” The US will be able to appeal into a legal void should the WTO rule against them.

#5- The European agricultural sector must pay its carbon taxes or the block will miss its goal of slashing emissions by 90% by 2040, EU chief climate scientist Ottmar Edenhofer, told the Financial Times. The sector’s emissions account for 12% of the EU’s total and have remained unchanged over the past 15 years compared to other sectors that have managed to cut their emissions, Edenhofer says. Other sectors had been subjected to levies and other climate incentives while farmers have managed to evade those policies by staging protests, one round of which pushed the European Commission to withdraw a proposed pesticide law and suggested targets.

But things might change soon: The EU will consider imposing a carbon pricing mechanism on the sector as it begins to outline its plans for its next five year mandate to come into effect later this year. The bloc is considering a levy on food processors that would push farmers to use land as a carbon sink.

That’s not all: The EU will have to advocate for the use of different forms of climate technology such as carbon removal to meet its targets, Edenhofer added. However, he dubbed the controversial solar radiation modification technology as a “poor substitute for mitigation.”

Background:Earlier this year, the EU Commission recommended a landmark proposal to push down 90% thebloc’sgreenhouse gas emissions by 2040 compared to 1990 levels in parliament yesterday, outlining a roadmap with annual investments of up to EUR 1.5 tn between 2031 and 2040. A previous draft of the proposal had set a target for the agriculture sector to reduce 30% of its non-CO2 emissions by 2040 from 2015 levels to comply with the meet the new climate goal, but after weeks of protest by farmers against EU green policies’ impact on the bloc’s agricultural sector’s competitiveness, the commission removed the goal from the final draft.

REMEMBER- Denmark became the first country to impose a CO2 tax on agriculture back in June. After months of deliberation, the country approved a carbon tax on every ton of greenhouse gas emitted by livestock.

IN OTHER EU NEWS- The EU will set up a Green Coupon Facility to subsidize green bonds issuance in poorer countries, Bloomberg reports, citing comments made by European Commission President Ursula von der Leyen at the Association of Small Island States Leaders’ Meeting. The subsidies will tackle part of the coupons for issuers suffering from high interest rates to grow the green bond market which is “struggling to take off.”

DANGER ZONE-

Over 40% of major companies, cities, and regions – almost 1.7k out of over 4k entities assessed – are yet to set emissions reductions targets, according to Net Zero Tracker’s annual stocktake (pdf). More governments and enterprises have set net zero pledges, but have lost focus due to political strife, causing a “commitment gap.” These amounted to 1.75k who had made formal climate commitments while 60% had set net zero pledges of some kind, representing a 23% increase from last year's stocktake mainly through Asian pledges.

More on the findings: Net Zero looked at climate plans from 198 countries, 706 sub-national regions, almost 1.2k cities, and just under 2k public companies. 495 companies, down from 734 last year, have no emissions targets including Tesla, BYD, Nintendo, and Berkshire Hathaway. While 60% of those assessed had set climate targets, only 5% met Net Zero’s criteria for

“robustness,” meaning they lacked detailed fossil fuel phase out plans, targets for non CO2 greenhouse gasses, and consideration of emissions across their value chain. One silver lining is that 148 countries accounting for 88% of the global population have set net zero commitments.

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CIRCLE YOUR CALENDAR-

Egypt will host the Portfolio Egypt conference on Monday, 30 September in Cairo. The event aims to enhance cooperation among Arab stock exchanges and will cover crucial topics including market integration, product diversification, carbon markets, and regional debt markets. It will aim to outline recommendations to strengthen regional financial markets.

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.

Egypt will host the EVs Electrify Egypt Summit from Thursday, 10 October to Saturday, 12 October in Cairo. This event will bring together industry players, engineers, and over 300 exhibitors for interactive showcases and EV test drives.

Egypt will host Cairo Water Week from Sunday, 13 October to Thursday, 17 October in Cairo. The event will explore various themes relating to water and climate and enhancing resilience in communities.

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