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Egypt officially launches Africa’s first carbon market

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WHAT WE’RE TRACKING TODAY

TODAY: Egypt’s carbon market is finally live + Another 2 GW solar plant for Saudi

Good morning, friends. It’s an exciting day for Egypt as the country finally launches Africa’s first carbon market, two years after laying the groundwork. Saudi is also in line to develop another 2 GW facility, and Empower continues its district cooling expansion in the UAE. Let’s dive into all the details below.

THE BIG CLIMATE STORY OUTSIDE THE REGION- There’s no single story shaping the conversation this morning, but the UK energy regulator Ofgem has approved a EUR 3.4 bn (USD 4.4 bn) funding package to build an electricity “superhighway” under the North Sea to connect Scotland and northern England. This comes as part of a larger plan to fast-track the development of offshore wind power projects. The Eastern Green Link 2 project — which will begin to be constructed later this year and is scheduled for operation in 2029 — will enable clean wind power produced in Scotland to be exported to England to bridge any gaps in energy supply. The 500 km cable will power up to 2 mn homes. Reuters and Bloomberg picked up the story.


COP WATCH-

Phasing out fossil fuels misses the text again: Nearly 80 Nobel prizewinners and former world leaders have raised concern regarding the removal of specific mentions of fossil fuel phase out from a revised draft of the UN climate pact that will be presented at the Summit of the Future in New York next month, The Financial Times reports. The change has alarmed climate leaders, including former Irish president Mary Robinson and Bangladesh’s Chief Adviser Muhammad Yunus, who urged the UN to include robust commitments to phase out coal, oil, and gas extraction in line with the Paris Agreement.

Not a good sign for COP29: The UN’s Summit of the Future will be a “critical” chance for member states to address global issues such as sustainable development, technological cooperation, and climate change, the FT writes. However, the omission of fossil fuels from the draft pact has raised concerns regarding the global commitment to phasing out fossil fuels and achieving net zero by 2050. The upcoming COP29 summit is also another crucial moment for climate discussions, but the failure to include fossil fuels in the UN climate pact could signal uncertainty about the global commitment towards the transition.

WATCH THIS SPACE-

#1- Enec could cooperate with the Philippines on nuclear energy: The Emirates Nuclear Energy Corp. (Enec) and the Philippines are exploring a potential partnership to introduce nuclear power to the Philippines’ energy mix, the Philippine News Agency reported. Enec Chairman Mohamed Al Hammadi held a phone call with Philippines President Ferdinand R. Marcos Jr. in Manila, where the latter stressed the urgent need to explore nuclear energy for power generation.

#2- US green subsidy delays expected to hit European hydrogen firms: ThyssenkruppNucera, the hydrogen arm of the German industrial engineering giant Thyssenkrupp, anticipates delays in the passing of green hydrogen subsidy laws under the US’ Inflation Reduction Act, Reuters reports, citing comments by company CEO Werner Ponikwar. The delay is expected to persist until after the US presidential election, making it challenging to predict the future of hydrogen projects. While the EU has over 1.4k hydrogen projects planned, only 7% have reached final investment decisions.

Thyssenkrupp is feeling the brunt of the uncertainty: The company reported a slowdown in growth in 3Q due to regulatory uncertainties impacting investment decisions. Despite announcing new projects, the company noted that unresolved regulatory issues and slow funding commitments have delayed final investment decisions for necessary electrolysis capacities. The uncertainty led the company to scrap its outlook for the alkaline water electrolysis business division, and its shares to drop by half since it went public last year.

This has been an ongoing issue: The company also reported a decline in demand for green hydrogen equipment in May which was a signal that the industry is facing headwinds.

WORTH READING-

USD bns “scale gap” in climate tech deployment hinders the green transition: Climate technologies face significant challenges in achieving commercial adoption due to the need for multiple early-stage deployments — such as hardware, software, and infrastructure integration — creating a gap in the resources needed to scale up projects underdevelopment, according to a new report (pdf) co-written by Boston Consulting Group’s (BCG) tech and design unit BCG X, and non-profit investor Elemental Excelerator. The estimated USD 150 bn “scale gap” is worsened by issues like lack of technical resources, high costs, and risk-averse investment climates.

Next steps: Diverse funding sources, government incentives, and public-private partnerships are necessary to help bridge the gap, Partner and Associate Director of BCG Faysal Taher told Zawya. Sovereign funds and state-owned companies, particularly in the Middle East, are key players in advancing climate technology on a global scale, he added. As financing for climate tech evolves, increased public and private capital is expected to drive further innovation and commercial adoption.

DANGER ZONE-

#1- Morocco water crisis reaches new levels: Morocco’s water reserves have significantly declined, with filling rates dropping to 27.87%, Hespress reported, citing data from the Directorate General of Water Engineering. During the same period last year, dams reached a filling rate between 31-32% but high summer evaporation rates and siltation have made that number even lower in recent months, with 63 dams across the country feeling the impact. Moroccan cities, including Casablanca, are now experiencing low water flow and limited bathroom access, with southeastern and eastern regions most affected.

REMEMBER- Water scarcity has been an ongoing problem in Morocco: Morocco has experienced five years of drought. Water inflows declined in the country from 2.5k cbm per capita annually in 1960 to 620 cbm in 2020, placing Morocco in a situation of structural water stress. Last year the country approached the absolute water scarcity threshold of 500 cbm per capita per year.

#2- Iraq is losing a lot of agricultural land: Iraq has lost approximately 60% of its irrigated agricultural lands due to severe water shortages and climate change, the Iraqi Agriculture Ministry's spokesperson Mohamed Al-Khuzaie told Shafaq News. The drastic reduction forced the ministry to scale back its winter wheat cultivation plans to cover just 1.5 mn acres of land. The ministry expanded farming into desert areas, utilizing groundwater irrigation systems in response to the challenges. However, Iraq remains one of the countries most affected by climate change, with water levels in the Tigris and Euphrates rivers reaching unprecedented lows.

REMEMBER- Iraq’s water reserves are in dire straits: Last year, Iraq’s reservoir capacities were at the their lowest levels in decades — half of levels recorded in 2018 — as neighboring Iran and Turkey continued to hike domestic flows from local dams on the Tigris, Euphrates, and other waterway channels. Iraq will only be able to meet 15% of its water demands by 2035 if current trends continue,

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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.

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CARBON MARKETS

Egypt officially launches Africa’s first carbon market

Egypt officially launched its voluntary carbon trading market — the first in the country and in Africa — yesterday, according to a statement. The market allows companies to issue and trade voluntary carbon certificates in Egypt and Africa, which can be bought by other companies wanting to offset their emissions. The EGX first announced its plans to set up the continent’s first voluntary carbon market in 2022.

REMEMBER- The Financial Regulatory Authority (FRA) wrapped up all the necessary requirements and procedures to register carbon emissions-reducing projects and kick start the market earlier this week. A few weeks before that, the FRA rolled out the requirements for brokerage firms looking to trade carbon certificates.

Purchases flowed in: Egyptian food producer Isis Organic purchased carbon credits representing 500 tons of carbon dioxide from 10 farms through the Egyptian Biodynamic Association (EBDA), according to a statement (pdf) from Beltone Securities Brokerage, which executed the transaction. The credits were certified under EBDA's “Economy of Love” standard, which aims to support small-scale farmers as they switch to organic and biodynamic farming methods.

Support for Indian agroforestry: Egyptian agriculture firm Daltex purchased 1.5k carbon credits from an agroforestry project in India’s Punjab through VNV Advisory, which runs the project, it said in a statement (pdf). The project aims to promote sustainable farming practices in rural India while utilizing income from carbon credits to improve the livelihoods of small farmers.

More to come: Another local emission-reducing project has been registered within the market, FRA head Mohamed Farid told Asharq Business (watch, runtime: 5:22), adding that the FRA is looking to add another six to seven projects to the market in the near future. The next phase will also see renewable energy certificates traded on the new market, Hapi Journal reports.

The interest is high: Officials from seven companies have expressed their intention to apply for the FRA’s approval to trade in carbon emissions reduction certificates and futures contracts in the voluntary carbon market, including Mubasher Financial Services, Arab African International Securities, Bank Audi’s Arabeya Online brokerage, Pioneers Brokerage, and Cairo Financial Holding’s brokerage arm Cairo Capital Securities. CI Capital got the greenlight to start trading in carbon certificates earlier this week.

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SOLAR

Another 2 GW solar plant on the way for Saudi

Saudi Arabia is getting a new 2 GW solar power plant: China Energy Engineering has signed a USD 972 mn contract to build a 2 GW solar power plant, Reuters reports, citing a filing to the Shanghai Stock Exchange earlier this week.

Details are scant: The plant will be built under a JV between a China Energy Engineering consortium and Saudi sovereign wealth fund the Public Investment Fund (PIF), Acwa Power, and Saudi Aramco Power Company. Construction is expected to take 31 months, according to the filing.

Chinese-Saudi investments are heating up: The agreement comes just weeks after officials from Saudi and China discussed increasing trade and investment between the two countries. PIF inked MoUs worth up to USD 50 bn with six major Chinese banks to boost investments in the kingdom earlier this month, and signed three separate agreements with major Chinese producers last month to localize the manufacturing of wind and solar power generation components worth USD 3 bn.

China Energy is already working in the region: Acwa Power signed an engineering, procurement and construction agreement with the company for its 400 MW solar energy project in Tashkent last year, and another agreement to co-develop Central Asia’s largest wind turbine. The Chinese firm also signed a framework agreement with Egypt’s Suez Canal Economic Zone for its USD 6.75 bn green hydrogen plant which will generate 210k ton of green hydrogen annually. The company also inked an agreement with Morocco’s Gaia Energy and Saudi Arabia’s Ajlan & Bros to jointly build a green hydrogen production facility in Morocco back in 2023.

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DISTRICT COOLING

Empower breaks ground on Deira’s cooling plant

Emirates Central Cooling Systems (Empower) has begun construction on a new district cooling plant in Dubai’s Deira district, according to a press release (pdf). The plant will serve 46 buildings within the Deira Waterfront development. The investment ticket for the project has not been disclosed.

What we know: The plant will have a total capacity of 39k refrigeration tons (RT) and will be established over two phases. The first phase will have a capacity of approximately 20k RT and is expected to launch operations by the end of June 2025.

Complete with tech: The facility will feature technologies including thermal energy storage which optimizes energy use during on-peak and off-peak hours, and Treated Sewage Effluent to conserve freshwater, the statement added.

Empower has big expansion plans: The company expects to grow its capacity in the UAE and expand into neighboring countries as the global district cooling market — currently valued at USD 28.3 bn in 2023 — is expected to reach USD 51.9 bn by 2031. The firm holds an 80% market share in Dubai’s district cooling market, the statement added.

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GREEN TECH

Morocco enhances solar panel capabilities with new tech

Moroccan researchers develop more efficient and durable PVT solar panels: Researchers at Chouaïb Doukkali University in Morocco have developed an advanced photovoltaic-thermal (PVT) solar panel that is more efficient and durable compared to conventional panels, according to a recently released research paper (pdf). The new design features a PV module, protective layers, a glass cover plate, and an aluminum heat exchanger.

The results: The exchanger effectively transfers heat from the PV module to the cooling fluid, addressing temperature imbalances that typically reduce the lifespan of solar panels. Simulations demonstrated an overall efficiency of 90.7% — broken up in 12.11% electrical efficiency and 78.59% thermal efficiency. Every 10 liter per hour increase in flow rate reduces the temperature of the solar cell by nearly 0.9°C, the researchers found.

Is PVT a game changer for the region? PVT stations are more efficient and have a higher energy output under higher temperatures and strong solar radiation conditions compared to PV stations, which are better suited for low ambient temperatures and weak solar radiation.

The key difference: PV technology converts solar energy into electricity, but its electrical efficiency is relatively low, ranging from 6% to 25% under standard conditions. Most of the absorbed solar energy turns into heat, raising the PV panels' temperature and reducing their efficiency. PVT modules on the other hand combine PV and solar thermal technologies by having water flow through the PV panel to cool it and improve electrical efficiency while generating hot water.

Saudi is looking into other ways to improve solar cell efficiency: Researchers from Saudi Arabia’s King Abdullah University of Science and Technology created tandem solar systems with a power conversion efficiency rate of 33.2% — up 0.7 percentage points from previous global record holder Helmholtz-Zentrum Berlin. Saudi renewables player Acwa Power signed an MoU with China’s Huawei Digital Power in June to develop a joint research and development program that aims to localize photovoltaic string production tech in Saudi Arabia, maximize solar panel efficiency, and reduce costs.

Omani students have made breakthroughs in solar panel production: Engineering students at Oman’s Sultan Qaboos University developed a solar panel production technique that relies on polyethylene and graphene instead of crystalline silicon, making it 60% more efficient at absorbing light than silicon-based alternatives.

And Turkey is getting in on the action: A design featuring shell-shaped organic solar cell surface instead of a conventional flat exterior for the active layer designed by Turkey’s Abdullah Gül University is enabling panels to absorb energy from multiple angles, yielding a 66% increase in light absorption. The flexibility of the new tech makes it suitable for applications on the move, such as wearable solar cells.

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ALSO ON OUR RADAR

Solar, green finance and investment updates from Saudi Arabia, Tunisia, and Turkey

DESALINATION-

Jubail 3B desalination plant in Saudi enters commercial operations: Saudi Water Partnership Company (SWPC) began operating its SAR 2.6 bn (USD 692 mn) solar-powered Jubail 3B Independent Water Desalination Project, according to a statement. The plant was developed by a consortium led by France’s Engie, along with Saudi Arabia’s Nesma Co, and Ajlan & Bros.

About the plant: The Jubail 3B plant will use reverse osmosis technology to produce 570k cbm of potable water daily to provide water to 2 mn people in Riyadh and Qassim, Trade Arabia wrote. The facility will also include storage tanks with the capacity to hold a day’s worth of desalinated water. The project — which is being developed under a 25-year build-own-operate contract — reached financial close in October 2021 after the bid was awarded to the Engie consortium.

REMEMBER- Acciona will handle the solar plant: Renewables and water treatment company Acciona is planning to build the 61 MW solar photovoltaic project that will power the desalination plant, which will help the plant cut down on conventional power consumptions. The plant is expected to be fully operational in 2024 and will produce potable water within the next few months.

GREEN FINANCE-

Miga issues EUR 18.45 mn guarantee for Tunisian solar plants: The World Bank’s Multilateral Investment Guarantee Agency (Miga) has released a EUR 18.45 mn guarantee to Japan’s Aeolus for its investment in Norwegian renewables developer Scatec’s 60 MW Sidi Bouzid and Tozeur solar projects in Tunisia, according to a press release. This comes a week after the European Bank for Reconstruction and Development and the French development agency, Proparco, said they would lend Aeolus — a subsidiary of Toyota’s investment arm Toyota Tsusho Group — and Scatec EUR 25 mn for the construction of the two solar plants.

REMEMBER- Aeolus signed a partnership agreement with Norwegian renewables developer Scatec to jointly develop and own the latter’s EUR 79 mn Sidi Bouzid and Tozeur solar projects earlier this month. Under the agreement, Aeolus acquired a 49% ownership stake. The tender for the plants entered its final stages back in May. Scatec was awarded a 20 year power purchase agreement with the option to extend 10 years from the Tunisian state utility firm Société Tunisienne de l’Electricité et du Gaz.

DEBT WATCH-

Polinas Plastik gets EUR 25 mn from EBRD to decarbonize packaging production: The European Bank for Reconstruction and Development (EBRD) has approved a EUR 25 mn loan for Turkey’s flexible packaging producer Polinas Plastik to help reduce emissions from the firm’s production line, according to a statement. The loan will go towards investments that will help make the firm’s production more energy and resource efficient, as well as integrating solar into the energy mix. The financing will also fund a new production line for biaxially oriented polypropylene film and new machinery that will allow for the production of fully recyclable packaging materials that incorporates both recycled and biobased content.

INVESTMENT WATCH-

ICIEC + JBIC partner to boost renewables projects: The Islamic Development Bank’s (IsDB) Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and the Japan Bank for International Cooperation (JBIC) have signed an MoU to enhance trade and investment between ICIEC member states and Japan, with a focus on climate action and renewable energy, according to a pressrelease. The partnership aims to leverage ICIEC’s insurance services and JBIC’s financial facilities to support projects particularly in Central Asia.

IsDB has more in the works: IsDB pledged USD 250 mn to Irena’s Energy Transition Accelerator Financing platform during COP28, for which ICIEC is offering de-risking products in developing countries. The lender also plans to invest USD 4.5 bn in as many as 57 sustainable and infrastructure projects across member states this year. It also signed a joint financing agreement worth USD 60 mn with Tunisia to support SMEs in various sectors including renewable and low-carbon energy in May, and signed a USD 150 mn financing agreement for Tajikistan’s Rogun hydropower plant in June.

JBIC has projects in the region: JBIC extended a USD 3 bn green finance loan to the Abu Dhabi National Oil Company (Adnoc) to support the company’s decarbonization efforts and green initiatives last month. The lender also extended a USD 12 mn loan to Mitsui & Co. for its 1 mn ton low carbon ammonia production Al Ruwais ammonia plant with Ta’ziz in June, and is among the financiers of the 500 MW Gulf of Suez wind plant in Egypt.


AUGUST 2024

12-16 August (Monday-Friday): Mastering Renewable & Alternative Energies, Dubai, UAE.

20-21 August (Tuesday-Wednesday): The World ESG Summit, Dubai, UAE.

24-26 August (Saturday-Monday): International Conference on Clean and Green Energy Engineering, Izmir, Turkey.

24-26 August (Saturday-Monday): International Summit on Non-Renewable and Renewable Energy, Valencia, Spain.

SEPTEMBER 2024

16-18 September (Monday-Wednesday): World Utilities Congress, Abu Dhabi, UAE.

17-19 September (Tuesday-Thursday): EV Auto Show, Riyadh, Saudi Arabia.

23-25 September (Monday-Wednesday): Powerlec Bahrain 2024, Manama, Bahrain.

25-26 September (Wednesday-Thursday): Green Steel Summit, Dubai, UAE.

OCTOBER 2024

1-3 October (Tuesday-Thursday): Water, Energy and Environment Technology Exhibition, Dubai, UAE.

1-3 October (Tuesday-Thursday): Cairo Sustainable Energy Week, Cairo, Egypt.

2-3 October (Wednesday-Thursday): World Green Economy Summit, Dubai, UAE.

10-12 October (Thursday-Saturday): The IEEE International Conference on Artificial Intelligence & Green Energy, Yasmine Hammamet, Tunisia.

13-17 October (Sunday-Thursday): Cairo Water Week, Cairo, Egypt.

15-17 October (Tuesday-Thursday): EV Auto Show, Riyadh, Saudi Arabia.

15-16 October (Tuesday-Wednesday): Solar & Storage Live KSA, Riyadh, Saudi Arabia.

NOVEMBER 2024

4-8 November (Monday-Friday): World Urban Forum, Cairo, Egypt.

4-8 November (Monday-Friday): AfricanEnergy Week, Cape Town, South Africa.

6-7 November (Wednesday-Thursday): Renewable Energy Forum Africa, Tunis, Tunisia.

6-7 November (Wednesday-Thursday): Critical Mineral Africa Summit, Cape Town, South Africa.

11-22 November (Monday-Friday) United Nations Climate Change Conference or Conference of the Parties (COP29), Baku, Azerbaijan.

11-14 November (Monday-Thursday): Abu Dhabi International Petroleum Exhibition & Conference, Abu Dhabi, UAE.

18-19 November (Monday-Tuesday): G20 Summit, Rio de Janeiro, Brazil.

19-22 November (Tuesday-Friday) Aquaculture Africa 2024, Hammamet, Tunisia.

26- 27 November: (Tuesday - Wednesday): World Food Security Summit, Abu Dhabi, UAE.

26-28 November (Tuesday-Thursday): Future Power Expo, Riyadh, Saudi Arabia.

26-28 November (Tuesday-Thursday): Egypt Energy Show, Cairo, Egypt.

27-28 November (Wednesday-Thursday): RAK Energy Summit, Ras Al Khaimah, UAE.

DECEMBER 2024

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

3-4 December (Tuesday-Wednesday): MSGBC Oil, Gas & Power 2024 conference, Dakar, Senegal.

JANUARY 2025

12-15 January (Sunday-Wednesday): World Renewable Energy Congress, Manama, Bahrain.

14-16 January (Tuesday-Thursday): World Energy Summit, Abu Dhabi, UAE.

28-29 January (Tuesday-Wednesday): Sustainability Forum Middle East, Riyadh, Saudi Arabia.

FEBRUARY 2025

23-25 February (Sunday- Tuesday): Global Water Energy and Climate Change Congress, Manama, Bahrain.

24-26 February (Monday-Wednesday): Connecting Hydrogen MENA, Dubai, UAE.

24-27 February (Monday-Thursday): Oman Climate Week, Muscat, Oman.

EVENTS WITH NO SET DATE

2024

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.

November: Arab Forum for Renewable Energy and Energy Efficiency, Amman, Jordan.

2025

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

UAE to have over 1k EV charging stations installed.

Middle East Electric Vehicle Show, Sharjah, UAE.

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.

World Water Forum, Riyadh, Saudi Arabia.

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.

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