COP28 kicks off with a bang, the loss and damage fund is finalized and operational

1

WHAT WE’RE TRACKING TODAY

TODAY: The loss and damage fund is finalized and operational

Good morning, friends. We have an absolutely jampacked issue for you this morning with all the need-to-know essentials from the first few days of COP28 and other climate industry updates from the region, but first…

THE 411 GUIDE- Here’s a handy guide (pdf) for the main thematic days and what to expect. Head to the official events schedule for a full rundown of all the panels, workshops, discussions, debates, and keynote speeches.

DAYS TO LOOK FORWARD TO-

5 December: Energy and Industry + Just Transition

6 December: Transport

10 December: Food, Agriculture, and Water

10-11 December: Final Negotiations

HAPPENING TODAY-Finance and Trade Day. Discussions will focus on three key aspects: scaling up efforts, improving access, and enhancing affordability. Stakeholders will explore reforms to the international financial system, enhanced delivery of concessional support, the development of sustainable finance markets, and voluntary carbon markets.

THE BIG CLIMATE STORY EVERYWHERE- The loss and damage fund is operational: 200 countries participating at the UN climate summit have signed off on operationalizing the long-awaited loss and damage fund established a year ago at COP27. The fund is set up to finance adaptation and mitigation efforts in climate vulnerable countries facing hurricanes, floods, droughts, and rising sea levels. The UAE, Germany, US, UK, the EU, Portugal, Spain, Canada, and Japan have all pledged amounts to the fund. We have all the details on the story in the news well, below.

A BRIEF LOOK AT COPLAND- Al Jaber sets COP28 in motion with a plea for flexibility:UAE’s Sultan Al Jaber launched the two-week climate with his opening statement on Thursday, officially assuming the role of COP28 President-Designate in the formal passing of the gavel from his Egyptian predecessor, COP27 president Sameh Shoukry. In a 20-minute speech (watch, runtime: 20:00), Al Jaber urges delegates to be flexible in their negotiations and urged for inclusion of the fossil fuel industry in negotiations.

Follow the leader? Al Jaber said in his speech that oil and gas companies “can lead the way” in the green energy transition, pointing to the minor steps that the sector has reluctantly taken such as committing to net-zero methane emissions by 2030, and adopting net-zero by 2050 targets. Al Jaber admits that this is “not enough”, while also pointing to the responsibility of high-emitting sectors like heavy transportation, aluminum, steel, and cement to “accelerate decarbonization at scale.” Earlier this year, fossil fuel companies including Shell excluded end-user (Scope 3) emissions from its climate targets, thus failing to account for up to 95% of its emissions.

More fuel on the fire: The President-Designate reportedly claimed there is “no science” that proves a phase-out of fossil fuel production is needed to restrict global heating to 1.5 C, and that a phase out would not allow sustainable development “unless you want to take the world back into caves,” The Guardian reports, citing comments made by Al Jaber at a live online event held last month. Al Jaber and the UAE have been championing the phase-out of fossil fuel emissions through ramping up carbon capture, despite climate experts and the UN concluding that this is not feasible and unrealistic.

Methane targets are making a buzz: “Let me also encourage countries to establish near zero methane emission targets, as part of the next round of Nationally Determined Contributions,” Al Jaber said. This “new road” starts with a decision on the Global Stocktake, according to the COP28 President, who is calling for an ambitious outcome that “corrects course and accelerates action to 2030.” According to Al Jaber, the UAE Presidency is also committed to “unlocking finance to ensure that the global south does not have to choose between development and climate action,” especially with regards to adaptation where an agreement on a robust global framework is on the table.

RUMOR HAS IT… The COP28 global climate policy draft off to a rough start: The COP28 presidency’s preliminary draft of the Global Stocktake (GST) indicates that there is a lack of consensus on the global climate policy front, The National reports. The verdict — set to measure the achieved progress on implementing the Paris Agreement targets for the first time since 2015 — reportedly leaves out most areas of contention, including unblocking climate finance and resolutely phasing down fossil fuel-powered energy, signaling possible divergence in the imminent climate negotiations.

THE CRITICS ARE STILL LOUD- COP28 is predicted to score less than 40% in expected level of progress towards climate targets set in Paris, according to a BloombergNEF report released on Thursday. The research organization identified 10 areas governments need to take action on at the climate conference in order to “take a meaningful step toward the goals of the 2015 Paris Agreement,” Bloomberg wrote.

What are the 10 key areas? BloombergNEF estimated the level of progress at the Dubai climate summit across 10 goals weighted based on importance and urgency. The 10 goals are: setting 1.5 C-aligned 2030 emissions goals; an effective stocktake on global Paris progress; agreeing on a fossil-fuel phase out; agreeing on an energy transition package; setting a detailed adaptation plan; staying on track 2025 adaptation finance target; achieving the USD 100 bn pledge; operationalizing the loss and damage fund; staying on track new finance target; and launching a carbon offset system.

An effective global stocktake + emissions goals are unlikely: The climate conference is expected to yield disappointing results on the world’s first global stocktake, scoring a meager 3 out of 10. Current climate action strategies leave the world with a 14% chance of meeting the 1.5°C warming limit at best, and could see temperatures rise by 2.9°C above pre-industrial levels by the end of the century, rendering the outcome of the stocktake all but done, Bloomberg adds. Additionally, setting 1.5 C-aligned 2030 emissions goals will likely be “more tentative than bold,” according to Bloomberg, which gave COP28 a 1 out of 10 score on this front.

The USD 100 bn climate finance target is more feasible:The climate conference will likely see developed countries make good on their USD 100 bn pledge to finance climate vulnerable developing markets, BloombergNEF notes, adding that the USD 89.6 bn mobilized in 2021 is a promising indicator for realization of the commitment. COP28 participants have already agreed on operationalisation of the loss and damage fund, with some USD 501.2 mn committed by the UAE, Germany, US, UK, the EU, Portugal, Spain, Canada, and Japan. While not on the official agenda, COP28 President-Designate Sultan Al Jaber called on multilateral development banks to work through country platforms, revise climate finance targets for coming years, and lower the risk for the private sector at the summit. Participating countries at the UN summit are also expected to replenish the Green Climate Fund at the conference, with Gulf states being pressured to contribute. BloombergNEF gave COP28 a seven out of 10 rating on this front.

EXPECT MORE ACTION FROM BANKS- Top development banks set to pledge more funds: Ten of the world's top development banks — including the World Bank — will pledge to increase their climate finance efforts at COP28, Reuters reports, citing an exclusive statement that is yet to be released. The group of banks plan to set a common approach to tracking and reporting climate impact and to increase the use of analytics to help countries identify investment priorities while attracting more private capital by removing fossil fuel subsidies and developing pipelines of green projects. The World Bank will host a joint program aimed at supporting countries and organizations to develop their own decarbonization and climate resilience strategy in the long-term.

But remain silent on plans to divest in fossil fuels: The statement seen by Reuters did not include any targets of divesting in fossil fuels, the newswire wrote. The European Investment Bank is yet the only one among the group to sign the 'Glasgow Declaration' and commit to stop lending to fossil fuel projects.

MODI EYES 2028 COP- India’s Prime Minister Narendra Modi has offered to host the UN's COP33 in an effort to position India as a climate leader, Bloomberg reported on Friday. Modi presided over the G20 this year and succeeded in having leaders commit to tripling renewable energy capacity by 2030. The UN is still struggling to find a host for COP29 — scheduled to be held in an Eastern European country — with threats by Russia looming to veto any bid by a European Union member. Germany has also refused to host COP29 at the UN headquarters in Bonn, leaving the UAE to retain the COP presidency if no agreement is reached.

WATCH THIS SPACE #1- Masdar is lining up another green bond issuance: UAE renewables giant Masdar is planning its second green bond issuance this year — of similar value to its earlier USD 750 mn issuance — to increase renewables capacity, Bloomberg reported Friday, citing CFO Niall Hannigan. The company’s debut green bond issuance was part of an initiative to raise USD 3 bn in bonds for new renewable energy projects in the UAE and abroad under a plan to grow its global portfolio to 100 GW of capacity by 2030. The funds went towards investments in clean energy projects in Uzbekistan and Azerbaijan.

WATCH THIS SPACE #2- India’s ReNew wants to expand investments in Egypt: India’s largest renewables developer ReNew Power is exploring investments in green hydrogen projects in Egypt, The National reported on Friday, citing comments made by ReNew’s CEO Sumant Sinha on the sidelines of COP28. The company — which the UAE sovereign wealth fund Abu Dhabi Investment Authority has a 14.5% share in — plans on diversifying its operations to the Middle East, North Africa, India and Australia, and investing in countries rich in natural resources, with a proximity to global markets, and a competitive price for land, Sinha told the news outlet. The capital for the investments will be made available through divesting in its existing assets, he added.

REMEMBER- El Sewedy + ReNew already signed an agreement for a USD 8 bn green hydrogen project: ReNew announced in August that it is scheduled to break ground on its USD 8 bn green hydrogen plant in Egypt’s Suez Canal Economic Zone early next year. This comes after El Sewedy Electric and ReNew signed a framework agreement with the government to generate 570 MW of renewables to be used for the production of 20k tons of green hydrogen during its pilot phase. The green hydrogen will be used as feedstock to generate 100k tons of green ammonia.

DANGER ZONE #1- World will hit 1.4°C warming in 2023: The world is on track to reach 1.4°C warming above pre-industrial levels in 2023, making it the hottest year on record and breaking the 2016 record of almost 1.3°C, the World Meteorological Organization (WMO)’s State of the Global Climate report released last Thursday found. "Greenhouse gas levels are record high. Global temperatures are record high. Sea level rise is record high. Antarctic sea ice is record low," said WMO Secretary-General Peterri Taala. Scientists also warned that next year could be worse as the impacts of El Niño are expected to peak in winter and drive up temperatures.

DANGER ZONE #2- Two-thirds of promised climate funds from developed world did not make it to their destination: Around two-thirds of climate finance commitments, totaling USD 343 bn, from the developed world between 2013 and 2021 were never reported as disbursed or had little connection to climate, Reuters reported last week, citing analysis by non-profit advocacy group One. The report found that Western nations reported projects like a coal power plant and coastal hotel projects as climate finance, as there are no guidelines for what countries can report to the United Nations as climate finance. Nigeria received 75% less than promised, with a deficit of USD 4.5 bn. Kenya also received USD 4.5 less than promised and Senegal's shortfall is around USD 2.8 bn.

Loss and damage agreement finalized + UAE launches USD 30 bn Alterra climate accelerator

After a year of heated deliberations, the loss and damage fund is finally in full force: In a big scoop for developing countries who disproportionately bear the consequences of climate change, some 200 countries have finally signed off on operationalizing the long-awaited loss and damage fund established a year ago at COP27, according to statement released on Thursday. The fund is set up to finance adaptation and mitigation efforts in climate vulnerable countries facing hurricanes, floods, droughts, and rising sea levels.

The UAE came in strong, and others (slowly) follow: The fund’s launch — which was announced at the COP28 opening plenary — came in parallel to the UAE pledging to contribute USD 100 mn into the fund, the statement said, despite some countries pushing for developed countries to shoulder the responsibility given its historical role in emission production. Germany, the UK, Japan, and the US also made initial contributions, standing at USD 100 mn, GBP 40 (c. USD 51 mn), USD 10 mn, and USD 17.5 mn, the statement disclosed. Since the fund’s launch on Thursday, Norway said it is putting in USD 25 mn, Spain EUR 20 mn (USD 21.78 mn), Portugal EUR 5 mn (c. USD 5.44 mn), and Canada USD 16 mn.

We’re still nowhere near enough the demanded funds: The pledges made so far are only a negligible fraction of the USD 100 bn that a group of developed countries have identified as the minimum annual needs by 2030. One study estimated that the economic cost of loss and damage to be USD 400 bn a year by 2030, while another predicts a cost of USD 290 and 580 bn a year by 2030.

Mia Mottley calls for taxing polluting industries as a source for the fund: “When you take USD 200 bn from oil and gas, USD 70 bn from international shipping, another USD 40-50bn from international air travelers and a financial transaction tax, we have a dedicated source of funds, not just for loss and damage, but to build resilience,” Barbados Prime Minister and climate champion Mia Mottley said in reference to a global movement calling for the taxation of fossil fuel profits as an alternative source of green financing.

Next steps: The World Bank, the fund’s interim host, could start doling out funds in three months, Bloomberg said on Friday. Meanwhile, World Bank head Ajay Banga told the Financial Times that the bank will not hand out any financing before “a raft of technical analysis” is completed.

A USD 30 bn Emirati climate venture:The UAE is launching a USD 30 bn “catalytic climate vehicle” — dubbed Alterra — to improve access to climate funding for the Global South, according to a statement released on Friday. The venture — backed by Lunate Capital — will have the USD 25 bn Alterra Acceleration program to direct institutional capital towards climate investments, as well as the USD 5 bn Alterra Transformation program to provide risk mitigation capital and incentivize investment flows into the Global South. The venture aims to mobilize USD 250 bn in green investments by 2030.

The initial commitment: Alterra — along with BlackRock, Brookfield, and TPG — have committed USD 6.5 bn to climate-dedicated funds, some of which are earmarked for 6 GW worth of renewables in India, 1.2 GW of which will start operation in 2025, the statement said.

The World Bank increases climate finance target to USD 40 bn by 2025: The World Bank has set a target to increase its climate financing capacity to USD 40 bn by 2025 — around USD 9 bn more than what was last recorded by the bank, according to a statement released on Friday. The new target would increase the bank’s climate-focused financing by 10% reaching 45% of the bank’s total lending volume for FY2024/2025. The World Bank set a target back in 2021 to extend 35% of its overall lending capacity toward climate funding within 5 years.

IN OTHER WORLD BANK NEWS:

The lender wants to scale climate finance through securitization: The World Bank is working with 15 finance firms to lower the risk of investing in climate projects in emerging economies and attract private capital. The lender's Private Sector Investment Lab is working on a model of "originate-to-distribute" to reel in big investors for climate projects. (Bloomberg)

Carbon credits could net USD 2.5 bn for 15 countries by 2028: By preserving their forests,15 countries including Ghana, Indonesia, and Vietnam, have potential to generate as much as 24 mn of the World Bank’s carbon credits by next year before increasing the volume to 126 mn by 2028. If successful, this could add USD 2.5 bn to their combined GDPs. (Statement)

More climate financing courtesy of the IFC:The IFC and several major charity organizations launched the Allied Climate Partners (ACP) which aims to raise USD 11 bn for green projects in developing countries, according to a statement released on Friday. The Three Cairns Group and the Bezos Earth Fund plan to seed the fund with USD 235 mn and the IFC will contribute another USD 590 mn. The group will use an initial USD 825 mn to attract private funding. ACP, IFC, the Monetary Authority of Singapore, and Temasek will also establish a green investments partnership to address climate finance gaps and increase the bankability of green and sustainable projects in Asia.

TheUS will pour USD 3 bn into Green Climate Fund: The US has pledged to allocate USD 3 bn to the Green Climate Fund, aimed at supporting developing countries in achieving their carbon reduction and adaptation targets, Bloomberg reports, citing statements made by Vice President Kamala Harris said on Saturday. The latest USD 3 bn contribution from the US comes after USD 9.3 bn has been pledged by the UK, France, Germany, and Japan, among other countries, to fund climate projects in countries affected by climate change between 2024 and 2027. With the new commitment, the Green Climate Fund has been replenished with USD 12.3 bn in total, COP28 president Sultan Al Jaber said.

Still not enough: Even with the current replenished Green Climate Fund, the pledged sum represents a small portion of the USD 340 bn of climate finance required by 2030. The adaptation finance needs announced by the UN are to help developing countries adapt to the warming climate and support them in implementing adaptation and mitigation policies.

OTHER STORIES TO KEEP AN EYE ON-

EU offers Morocco EUR 50 mn for its green transition: Morocco signed a joint statement with the European Union on Saturday agreeing to receive EUR 50 mn in financing to help expand the kingdom’s green energy and carbon removal programs. The agreement will activate the terms of the green partnership signed by Morocco and the EU last year. (Maghreb Arabe Press)

Investcorp launches climate investment platform: Mubadala-backed Investcorp launched on Friday a USD 750 mn climate-focused investment platform focused on developing emission-reducing innovative products and tech. The asset manager plans to make 10-15 investments in the next 4-5 years, with each funding round ranging between USD 50-75 mn. (The National)

Egypt to debut voluntary carbon market at COP28: In preparation for launching its first voluntary carbon market during COP, Egypt has identified 16 sectors — including renewable energy, waste management, and carbon capture — in which it aims to attract investments in carbon trading. (Sky News)

DIFC boosts sustainable funding: The Dubai International Financial Centre (DIFC) rolled out its Sustainable Finance Catalyst, aimed to ramp up sustainable funding raised from Dubai to USD 100 bn by 2030. The catalyst is set to include the launch of the first AI-powered sustainability knowledge hub aimed at providing businesses with expedient and cost-efficient sustainable financing and investment data. (Statement)

CIBAFI to tackle climate crisis with Islamic sustainability: The General Council for Islamic Banks and Financial Institutions (CIBAFI), the Islamic Financial Services Board and the Accounting and Auditing Organization for Islamic Financial Institutions have introduced a roadmap to amplify the role of Islamic financial services in advancing sustainability and confronting worldwide climate-related challenges. (Statement)

Masdar signs a spate of agreements in a renewables energy swoop + Scatec and Amea Power expand their presence regionally and abroad

Masdar is making the rounds at COP28: UAE renewables player Masdar is sweeping the circuit at the summit, inking on the dotted line to launch renewables projects in Europe, Central Asia, and Africa.

The company is widening its presence in the UK: Masdar signed an agreement with German energy company RWE to purchase 49% of RWE’s 3 GW Dogger Bank South offshore wind farms as part of its larger GBP 11 bn investment ticket into UK renewables, Wam reported on Friday. The acquisition will pave the way for Masdar and RWE to jointly co-develop the two offshore wind farms with construction starting as early as 2025, according to a RWE statement. The first 800 MW of electricity is planned to come online in 2029 with the aim to fully commission the projects by late 2031, the statement added. Closing of the agreement is subject to customary approvals and expected in 1Q 2024, Wam notes.

And expanding in Kazakhstan:The company signed a joint development agreement (JDA) with W Solar, Qazaq Green Power QGP — owned by Kazakh sovereign wealth fund Samruk-Kazyna — and the Kazakhstan Investment Development Fund to develop a 1 GW wind energy farm in the Central Asian country, Wam reported on Saturday. The project marks Masdar’s first entry into Kazakhstan. The financial details and a timeline for the project were not disclosed.

Then moved further south in Angola: Masdar also signed an agreement with Angola’s Energy and Water Ministry to develop a 150 MW onshore solar power plant in the Hulia province of the African country, Wam reported on Saturday. The financial details of the agreement and a timeline for the project was not disclosed. Once operational, the project is set to offset 224k tons of CO2 annually and provide enough clean power to some 90k households in Angola

Masdar has green ambition in Africa: The project falls in line with the UAE-led USD 10 bn Africa Green Investment Initiative, Wam notes. Masdar is planning to develop 10 GW of renewables projects in the continent by 2030 in a bid to provide clean electricity to 100 mn people by 2035. Back in January, Masdar inked two agreements to develop 3 GW worth of solar projects in Angola and Uganda and 4 GW worth of renewables projects in Zambia and Ethiopia.

OTHER MASDAR STORIES TO NOTE-

Boosted capacity for Indonesian floating solar project: Masdar and Indonesia’s state-owned PLN signed an agreement to proceed with plans to add up to 500 MW capacity to its Cirata 145 MW floating solar plant in Indonesia and to explore green hydrogen projects. (Statement)

An eye onGreece's green infrastructure: Masdar signed an agreement with the Greek Ministry of Environment and Energy to collaborate on a green infrastructure in Poros Island including renewable energy projects, decarbonising the island's vehicle fleet and maritime transportation, and waste management projects. (Wam)

10 GW worth of projects in Malaysia: Masdar signed an implementation roadmap with Malaysia to proceed with the development of 10 GW worth of clean energy projects including round-mounted, rooftop, and floating solar power plants, onshore wind farms, and battery energy storage systems. (Wam)

Scatecboosts Egypt green energy profile at COP28: Norwegian renewables developer Scatec inked a USD 1.1 bn agreement with the Suez Canal Economic Zone to supply ships with green fuel in east Port Said, according to a statement released yesterday. The green fuel’s 190 MW electrolyzer will be powered by 317 MW wind and 140 MW solar energy with a production target of 100k tons of green methanol annually by 2027.

And there’s more: The Norwegian firm also signed an agreement with the Egyptian Electricity Holding Company to establish a 1 GW solar and 200 MWh battery storage project in Egypt, according to a statement released on Saturday. The African Development Bank Group signed a letter of intent for the financing package of the project yet the value of the project wasn’t disclosed.

UAE’s Amea Power taps into Ethiopia wind energy market: UAE renewables company Amea Power signed an agreement with Ethiopia’s Finance Ministry to build a a USD 600 mn, 300 MW onshore wind power plant in the African country, according to a statement. The Aysha wind farm will span 18k acres, making it the country’s largest once operational. A timeline on when construction would begin on the plant was not provided.

And eyes Kenya’s geothermal sector: The UAE firm is also reportedly set to sign a USD 800 mn agreement with Geothermal Development Co. of Kenya to develop the 200 MW Baka geothermal energy generation plant in the African country, Asharq Business reported on Saturday, citing a source with knowledge of the matter. The expected timeline of the project and Amea’s stake in the venture was not provided. Back in September, Amea Power said it plans to establish a 1 GW green hydrogen plant in Kenya’s Mombasa port as part of a commitment to mobile USD 5 bn to finance development of several renewable energy projects in Africa that would yield a 5 GW power capacity by 2030.

OTHER STORIES WORTH KNOWING-

Acwa Power finalizes agreement on Kazakh wind farm: The Saudi renewables giant finalized its agreement to build a 1 GW wind power and battery energy storage project — which it signed a roadmap agreement for in June with Samruk-Kazyna — in Kazakhstan. The project is expected to cost USD 1.8 bn. (Reuters)

UAE + Philippines partner on mitigation efforts: UAE's Ministry of Climate Change and Environment signed an MoU with the Philippines Climate Change Commission to cooperate on mitigating the impacts of climate change, adaptation efforts, and preserving natural resources and biodiversity. (Statement)

The UN and UAE partner to accelerate the energy transition: Executive Secretary of the UN’s Framework Convention on Climate Change (UNFCC) Simon Stiell signed an agreement with the UAE’s Independent Climate Change Accelerators (UICCA) to expand cooperation on climate finance, carbon market development, green tech investments, and youth upskilling in the climate adaptation and green energy sectors. (Wam)

Tadweer + Aquagrain to debut waste to soil tech: UAE's Tadweer and the UK's Aquagrain will partner on an ADQ-backed USD 2.5 mn pilot project to deploy Aquagrain's soil enhancing tech which uses organic waste to grow crops in arid lands using 50% less water and inorganic fertilizers. The project will pave the way for the first-ever commercial scale Aquagrain production facility to be launched in Abu Dhabi. (Wam)

Opec Fund to partner with Irena + IAEA on climate action: The Opec Fund is expected to sign agreements during COP28 to support climate action and resilience in developing nations. It will partner with the International Atomic Energy Agency (IAEA), the International Renewable Energy Agency, and development banks to address climate-related challenges and food security. (Ahram Online)

Nations vow to scale up renewable + nuclear capacity

A very productive start to COP28: The global climate event of the year showed promising and decisive steps over the weekend toward climate policy and action, chief among them a swell of support behind the commitment to triple the global renewable energy capacity.

116 states committed to the Global Renewables and Energy Efficiency Pledge, vowing to triple global renewable energy generation to 11 TW by 2030, according to a COP28 statement. The pledge — which Reuters released a draft of last month — also includes a commitment by signatories to slash global reliance on fossil fuels, cut financing for coal power plants, reduce methane emissions, and a target to improve energy efficiency by 4% by the end of the decade.

And over 20 countries aim to triple nuclear energy production: Led by the US, over 20 countries inked a declaration to triple the world’s nuclear energy production by 2050, according to a statement by the US Energy Department. 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 370 GW.

DECARBONIZATION-

The EU is allocating EUR 175 mn for methane reduction: The EU vowed to allocate EUR 175 mn to support effective action on methane emission reduction, according to a European Commission statement released on Friday. Some of the funds will be used to finance the International Methane Emissions Observatory’s activities including the collection of the data, or research into even better mechanisms to collect emission-related data. The funds will be written off to the US Methane Finance Sprint initiative, which said it aims to mobilize at least USD 200 mn during COP28. This comes two weeks after the bloc approved a provisional law to set methane emission curbs for future oil and gas imports into the bloc.

Philanthropies are backing the efforts with USD mns: Nearly a dozen giant philanthropies — including the Bezos Earth Fund and Bloomberg Philanthropies — said they will invest USD 450 mn over the next three years to help countries launch national actions to tackle methane, Reuters reported on Saturday. Since last year’s climate summit, the US, the EU, and philanthropy groups have raised over USD 1 bn in donations to help cut methane emissions, US Special Presidential Envoy for Climate Change John Kerry said, according to Bloomberg.

And the US is also using a methane mandate: The US issued standards and guidelines limiting methane emissions and other harmful air pollution from “new, modified and reconstructed” oil and natural gas operations for the first time, according to a statement released by the Environmental Protection Agency (EPA) on Saturday. The mandate requires fossil fuel producers to monitor and eliminate methane leakage into the atmosphere, as well as natural gas flaring from new oil wells. The rule — which has been two years in the making — targets cutting methane emissions in the oil and gas sector by 80% over the next 15 years, preventing some 58 mn tons of the “super pollutant” from being released into the atmosphere, according to an EPA document (pdf).

ALSO- 50 oil companies sign decarbonization charter: Exxon Mobil and 49 other oil and gas companies signed the Oil and Gas Decarbonization Charter (OGDC) in efforts to accelerate the sector’s journey to net-zero by 2050, Bloomberg reported on Saturday. The pact, rolled out by Saudi Arabia and the COP28 Presidency, sets a net zero by 2030 emissions target, in parallel to an emphasis on ramping up investments in renewables and other low-carbon technologies. While the targets stipulated in the charter are non-binding, the signatories — which make up over 40% of the oil sector worldwide — will be required to submit their decarbonization plans by 2050, Bloomberg writes.

Some notable signatories: Out of the 50 oil and gas companies that inked the charter, 29 are state-owned producers, including the UAE’s Adnoc and Saudi Arabia’s Aramco — the largest national oil exporter in the world.

HEALTH-

COP28’s maiden declaration on climate and health is a success: 124 countries signed the UAE Climate and Health Declaration launched by the World Health Organization, the Emirati Health Ministry, and the COP28 presidency, according to a statement. The declaration marks the first official recognition of the impacts of climate change on public health and aims to spur global policy intervention to address the health impacts of climate change and place protecting public and community health at the core of climate action.

Big funds pledged: A group of stakeholders — including signatory governments, financing institutions, and NGOs — have agreed to allocate USD 1 bn to tackle the ongoing climate-health crisis. The Global Fund has committed USD 300 mn to upgrade health systems and the Rockefeller Foundation has said it will invest USD 100 mn in climate-health solutions.

MANUFACTURING-

Kenya launches green industrialization initiative: Kenyan President William Ruto has joined forces with the UAE COP28 presidency to launch the Africa Green Industrialization Initiative (AGII) at COP28, according to a statement. The program targets upscaling green industries and businesses across African nations towards advancing the transition to a green economy and bolstering mitigation and adaptation procedures across the continent.

OTHER STORIES TO KEEP AN EYE ON-

EU heads lobby to tax jet fuel: The European Union will be pushing for an agreement to impose an international tax on aviation fuel (to be charged per flight) at COP28. The funds collected by the bloc from taxing the aviation sector would be used to fund climate actions. Other countries backing the lobby include China, Zambia, Brazil and the GCC. (The Financial Times)

US and others commit to coal phasedown…: The United States, along with the Czech Republic, the Dominican Republic and four other countries, have joined 50 other nations in the Powering Past Coal Alliance. By joining the coalition, the states have committed themselves to accelerating the global coal phasedown efforts towards transitioning to clean energy. (Associated Press)

Shipping heavyweights call for tighter carbon regulations: The CEOs of global shipping lines MSC, Maersk, CMA CGM, Hapag-Lloyd, and Wallenius Wilhelmsen called for a tighter greenhouse gas emissions regulatory framework. The shipping giants also called for a deadline for ceasing production of fossil fuel-only vessels. (Statement)

WTO rolls out trade policy guidelines: The World Trade Organization (WTO) launched a 10-point Trade Policy Tools for Climate Action publication on the sidelines of COP28. The policy toolkit provides governments with a set of trade procedures aimed at supporting and accelerating climate efforts. (Statement)

Macron, Bloomberg unveil pilot climate data platform: French President Emmanuel Macron and philanthropist Mike Bloomberg have launched the pilot Net-Zero Data Public Utility to provide businesses with essential climate data. The utility is set to be the first centralized open database for climate data across industries including in-depth information on the carbon footprint and decarbonization targets for up to 400 companies. (Bloomberg Philanthropies)

Oman and European friends explore green hydrogen corridor

Oman explores the feasibility of export green hydrogen to Europe: Oman’sMinistry of Energy and Minerals and Hydrogen Oman (Hydrom)signed a Joint Study Agreement (JSA) with Port of Amsterdam, Zenith Energy Terminals, and GasLog to create a liquid hydrogen supply chain to deliver Omani green hydrogen to the Port of Amsterdam, according to a statement.

The details: Both parties will carry out a detailed assessment of the requirements for an open-access hydrogen liquefaction, storage, and export facility in Oman and the development of specialized vessels for transporting liquid hydrogen by GasLog, the statement notes. The open-access liquefaction facility also allows Oman to explore cost-effective hydrogen export routes to other global markets.

Bapco Energies closes a USD 2.2 bn amend and extend transaction

Bahrain's Bapco Energies successfully closed a USD 2.2 bn amend and extendtransaction of its dual-tranche sustainability-linked term facility, according to a statement released last week. The transaction adds a USD 300 mn green shoe option, bringing the total facility size to USD 2.5 bn.

About the transaction: The transaction extended the maturity date from 2026 to 2030. The sustainability-linked KPIs, covering emissions intensity and health and safety, were amended to align with best practices and definitions of the International Association of Oil & Gas Producers (IOGP) and Bapco’s newly issued sustainability-linked financing framework.

Advisors: Gulf International Bank and Mashreq acted as the initial mandated lead arrangers, bookrunners, and sustainability coordinators. Gulf International Bank, Mashreq, and Al Ahli Bank of Kuwait acted as the amend and restate exercise coordinators and underwriters. Gulf International Bank also acted as a facility agent, global agent, and murabaha investment agent.

Dubai launches new initiative to help electrify its manufacturing sector

New Dubai initiative aims to decarbonize manufacturing industry: Dubai has revealed a new initative led by the Dubai Water and Electricity Authority (Dewa) — in line with the Dubai Economic Agenda (D33) — aimed at transitioning its manufacturing sector toward clean energy sources, Wam reported last week. The initiative aims to enable manufacturers to source their own power needs from low-carbon sources in a bid to push down energy bills and slash emissions while leveraging the affordability of UAE renewables projects like the 2 GW Al Dhafra Solar Independent Power Project ’s competitive tariffs.

The details: The initiative will set up the necessary technical frameworks for industry players — including manufacturers, data centers and agri-tech companies — to incorporate solar power into their total connected load, the news agency notes. It will also enable developers to purchase MWh-by-MWh renewable energy certificates — similar to the ones issued by the Emirates Water and Electricity Company — to prove they own or created renewable energy.

IN OTHER UAE POLICY NEWS- Abu Dhabi released its 2050 Energy Outlook: The Abu Dhabi Department of Energy (DoE) released its 2050 Energy Outlook with the aim of mobilizing further net zero policy development across the Emirate, Wam reported on Thursday. The report — which has been in the works for a year and is modeled on DoE’s Integrated Energy Model — will serve as a 2050 net zero roadmap for Abu Dhabi across its transport, construction, manufacturing, and power sectors. Renewables currently makeup 40% of Abu Dhabi’s energy mix, and the Emirate is looking to increase the capacity by 20% by 2035.

Business as usual would blow Abu Dhabi’s climate targets: Under a business as usual premise whereby Abu Dhabi maintains its currency climate pledges, DoE predicts that by 2050 the Emirate’s energy mix will be dominated by natural gas with only a moderate development in renewables and an insufficient carbon capture and storage capacity. The Emirate would push down its carbon output by just 29% compared to 2021 levels under this scenario, Wam notes.

Saudi and Brazil discuss renewable energy cooperation, UAE and Colombia boost partnership on energy, and Oman works with Switzerland on green hydrogen

KSA+ Brazil talk energy cooperation: The governments of Brazil and Saudi Arabia discussed potential investments in sectors including renewables, mining, and agriculture, SPA reported last week. The two countries met at the Saudi-Brazilian Roundtable Meeting in Riyadh, where they were looking to explore ways to expand partnerships in those sectors.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

UAE + Colombia ink CEPA to boost collaboration on energy: UAE Minister for Foreign Trade Thani bin Ahmed Al Zeyoudi and Colombian Minister of Industry, Commerce, and Tourism German Umaña concluded Comprehensive Economic Partnership Agreement (CEPA) negotiations for the first bilateral trade agreement between the Gulf and South America on Saturday. The CEPA is set to enhance collaboration in several areas, including energy. (Wam)
Oman signs agreement with Switzerland on green hydrogen projects: Oman’s Ministry of Energy and Minerals and the Swiss Federal Office of Energy signed an MoU to develop bilateral cooperation in green hydrogen projects and exchange knowledge and expertise in relevant laws, regulations, and policies. (Times of Oman)

Green mobility updates from the UAE and KSA + Egypt gets more green funding from the AfDB

GREEN MOBILITY-

EveAir Mobility + Saudi's Flynas partner on eVTOLs: Brazilian eVTOL company Eve Air Mobility has signed an MoU with Saudi Arabia's air carrier and the leading low-cost airline Flynas to explore operating eVTOLs in KSA, according to a statement released last week. The agreement will see them explore deploying eVTOLS in Riyadh and Jeddah in 2026.

Wisdom Motor debuts hydrogen city bus in Abu Dhabi: Zero-emission vehicle innovator Wisdom Motor has partnered with the Integrated Transport Centre (ITC) of the Department of Municipalities and Transport (DMT) in Abu Dhabi to bring the first 12-meter hydrogen city bus to the region, according to a statement released last week. Wisdom Motor and the ITC’s cooperation will provide new green mobility solutions to Abu Dhabi and bolster the ITC’s Green Bus Assessment Program, the statement said.

POLICY-

IFC inks agreements with Tunisian partners to promote ESG performance: The International Finance Corporation (IFC) has signed agreements with the Tunisian Stock Exchange, the Tunisian Institute of Directors, and the Université Centrale to promote ESG practices in Tunisia's banking sector, Tunis Africa Press Agency (TAP) reports.The agreement will implement an 18-month technical partnership to help Tunisian partners meet ESG standards mandated in Europe and elsewhere, IFC Resident Representative in Tunisia Sarah Morsi told TAP. The IFC is looking to expand its presence in the country with a USD 100 mn investment earmarked for the agri-food sector this year.

GREEN FINANCE-

AfDB supports Egypt’s green economy with fresh funding: The African Development Bank (AfDB) has signed off on a USD 131 mn support package for Egypt to promote private-sector development, economic diversification, and green transition, according to a statement released last week. The program will target increasing private investment, allocating state land for renewable energy projects, promoting manufacturing, and reducing the time to process business licenses among other objectives. Last month, the AfDB said it would commit USD 350 mn by the end of the year to develop Egypt’s infrastructure and energy sectors.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

ADA completes region’s first helicopter flight using SAF: Abu Dhabi Aviation (ADA) has completed two flights with Italian aerospace company Leonardo’s AW139 helicopter powered by sustainable aviation fuels (SAF), marking a first in the MENA region. (Statement)
Masdar Green REIT secures ADGM Green Fund Designation: Masdar Green Real Estate Investment Fund (REIT) has received the ADGM Green Fund Designation for advancing green real estate investment. The fund's portfolio includes 10 green buildings with LEED Gold or Platinum ratings. (Wam)

CALENDAR

NOVEMBER 2023

30 November - 12 December (Thursday-Tuesday): Conference of the Parties (COP 28), Dubai, UAE.

DECEMBER 2023

1-10 December (Friday-Saturday): Abu Dhabi Sustainability Week COP28 Special Edition, Dubai, UAE.

3-7 December (Sunday- Thursday) International Congress of Engineering and Technology (ICET), Doha, Qatar.

4 December (Monday): Saudi Green Initiative Forum, Dubai, UAE.

4 December (Monday): Abu Dhabi Sustainability Week (ADSW), Dubai, UAE.

4-7 December (Monday-Thursday): International Conference on Global Warming, Ras Al Khaimah, UAE.

6-7 December (Wednesday-Thursday): Reuters’ Energy Transition MENA Conference, Dubai, UAE.

7-8 December (Thursday-Friday): Future Investment Initiative (FII) Priority, Hong Kong.

8 December (Friday): Youth for Sustainability Forum (Y4S), Dubai, UAE.

12-14 December (Tuesday-Thursday): Green Hydrogen Summit Oman, Muscat, Oman.

18-20 December (Monday-Wednesday):Saudi Arabia Smart Grid Conference, Riyadh, Saudi Arabia.

JANUARY 2024

9-11 January (Tuesday-Thursday): Future Minerals Forum, Riyadh, Saudi Arabia.

FEBRUARY 2024

26-28 February (Monday-Wednesday): Management and Sustainability of Water Resources, Dubai, UAE.

MARCH 2024

4-6 March (Monday-Wednesday): International Conference on Sand and Dust Storms in the Arabian Peninsula, Riyadh, Saudi Arabia.

APRIL 2024

16-18 April (Tuesday-Thursday): World Future Energy Summit, Abu Dhabi, UAE.

23-25 April (Tuesday-Thursday): Connecting Green Hydrogen MENA, Dubai, UAE.

MAY 2024

19-21 May (Sunday-Tuesday): Saudi Energy Convention, Riyadh, KSA.

JUNE 2024

5 June (Wednesday): World Environment Day, Saudi Arabia.

OCTOBER 2024

10-12 October (Tuesday-Thursday): Autonomous E-Mobility Forum, Doha, Qatar.

DECEMBER 2024

2-13 December (Monday-Friday): Conference of the Parties (COP16) to the United Nation Convention to Combat Desertification, Riyadh, KSA.

EVENTS WITH NO SET DATE

2024

Early 2024: The 2023 US Algeria Energy Forum, Washington DC, USA.

12-14 February (Monday-Wednesday): Sustainable Aviation Futures MENA Congress, Dubai, UAE.

End-2024: Emirati Masdar’s 500 MW wind farm in Uzbekistan to begin commercial operations.

QatarEnergy’s industrial cities solar power project will start electricity production.

2025

International Union for Conservation of Nature World Conservation Congress, Abu Dhabi, UAE.

UAE to have over 1k EV charging stations installed.

2026

26-29 October (Monday-Thursday): World Energy Congress, Riyadh, Saudi Arabia.

UITP Global Public Transport Summit, Dubai, UAE.

Annual Meetings of the World Bank and the International Monetary Fund, Bangkok, Thailand.

1Q 2026: QatarEnergy’s USD 1 bn blue ammonia plant to be completed.

End-2026: HSBC Bahrain to eliminate single-use PVC plastic cards.

2027

MENA’s district cooling market is expected to reach USD 15 bn.

2030

UAE’s Abu Dhabi Commercial Bank (ADCB) wants to provide AED 35 bn in green financing.

UAE targets 14 GW in clean energy capacity.

Tunisia targets 30% of renewables in its energy mix.

Qatar wants to generate USD 17 bn from its circular economy, creating 9k-19k jobs.

Morocco’s Xlinks solar and wind energy project to generate 10.5 GW of energy.

2035

Qatar to capture up to 11 mn tons of CO2 annually.

2045

Qatar’s Public Works Authority’s (Ashghal) USD 1.5 bn sewage treatment facility to reach 600k cm/d capacity.

2050

Tunisia’s carbon neutrality target.

2060

Nigeria aims to achieve its net-zero emissions target.

Sections

About

Privacy & Support

Get EnterpriseAM daily