Good morning, folks, and welcome to what appears to be a busy week as the COP29 train rolls on and the G20 summit kicks off today in Rio de Janeiro. Climate matters are speculated to be at the top of G20’s agenda as several leaders skipped COP29 citing preparations for the summit, leaving climate negotiators in Baku with their eyes peeled on proceedings and potentially strong climate finance outcomes. Before we dive in…

HERE’S WHAT TO LOOK OUT FOR THIS WEEK-

19 November: Food, Agriculture and Water

21 November: Nature and Biodiversity, Oceans and Coastal Zones

22 November: Final Negotiations

And ICYMI- a handy guide (pdf) for the main thematic days and what to expect and a full rundown of all the panels, workshops, discussions, debates, and keynote speeches.

THE BIG CLIMATE STORY OUTSIDE THE REGION- Biden makes historic Amazon visit: US President Joe Biden is the first sitting US president to visit the Amazon rainforest after landing in Brazil yesterday to meet with local leaders dedicated to preserving the rainforest. The Biden administration is making an additional USD 50 mn contribution to the Amazon Fund primarily financed by Norway. The contribution takes US donations up to USD 100 mn. Biden's visit comes ahead of the G20 summit in Rio de Janeiro, where global leaders will address pressing issues including climate change. The Amazon, home to 10% of Earth's biodiversity and vital for regulating moisture across South America, has faced severe deforestation and historic droughts. Brazilian President Lula da Silva has pledged "zero deforestation" by 2030, and recent data shows a 30.6% drop in forest loss over the past year.

The story grabbed ink in the international press: Reuters | AP | Bloomberg | CBS | Politico

THE LATEST FROM COPLAND-

We have a draft text for COP29’s new finance goal: The New Collective Quantified Goal(NCQG) contact group published a draft text (pdf) for its new climate finance goal last week, described as a “workable basis for discussion” for the three-year technical process, according to a press release. The draft text described the NCQG as “the sole obligation of developed countries to provide and mobilize climate finance to developing countries.” Several financing options were listed, with prospective financing targets still being an open-ended question.

UN climate chief Simon Stiell has called on G20 leaders to signal “ crystal-clear” support for global climate finance efforts at their summit this week, Reuters reported on Saturday. Stiell emphasized the need for increased grants, loans, and debt relief to help vulnerable countries tackle the impacts of global warming. The plea comes as negotiators at the COP29 conference in Baku struggle to agree on a new annual finance target, with developing countries requiring at least USD 1 tn a year by the end of the decade.

Conflict-affected nations demand climate aid be doubled: A coalition of conflict-affected countries has called for more than USD 20 bn in annual climate financing by 2026, citing an urgent need to address the dual crises of natural disasters and security challenges, according to a letter sent last month to the COP Presidency that Reuters obtained. The coalition — including Iraq, Somalia, Yemen, Burundi, Chad, Sierra Leone, and Timor-Leste — has called on other conflict-affected countries to join its effort.

The countries argue that they have limited access to private investment due to perceived risks, making UN funds critical for their populations. A climate disaster in any of these countries usually leaves a more damaging impact than in any other developing nation, the countries argue, calling for explicit commitments in any finance agreement during COP.

COP29 Presidency response: In collaboration with Egypt, UAE, Italy, the UK, Germany, and Uganda, the COP29 presidency launched the Baku Call on Climate Action for Peace, Relief, and Recovery, an initiative they said aims at addressing the intersection of climate and conflict, according to a Friday statement. It is not clear how much impact the initiative could achieve, but the announcement said it aims to enhance collaboration towards “peace-sensitive” climate action and ramping up financing for the “most-climate vulnerable" nations, including those impacted by conflicts.

Island and rainforest nations are also making their case for increased funding at COP29, arguing their roles as frontline defenders against rising seas and carbon sink destruction, the newswire writes. A financing commitment to island nations is expected to be central to any agreement emerging from the talks.

NEGOTIATORS ARE DIPPING OUT- France has withdrawn top negotiators from COP29 after strong words from Azerbaijan’s President Ilham Aliyev, the Financial Times reported on Thursday. Aliyev took aim at French President Emmanuel Macron, accusing him of “brutally” killing citizens during protests in the French island territory New Caledonia. France is a key ally of Armenia, which is in a longstanding conflict with its neighbor Azerbaijan. France no longer has a senior political official in Baku, but a climate ambassador is still attending.

Argentina also withdrew its negotiators on Wednesday as the country mulls over withdrawing from the Paris climate agreement, the Financial Times reported last week.

DISPUTES ON FOSSIL FUEL PHASEOUT PERSIST- Reaffirming last year's commitment to transition away from fossils at COP29 is still contentious, Bloomberg reported on Saturday. European and US negotiators are pushing to restate these commitments, but Saudi Arabia is leading the opposition pack, with delaying and blocking maneuvers, people familiar with the closed-door negotiations told Bloomberg. Saudi Arabia characterized COP28’s landmark agreement to transition away from fossil fuels as offering a flexible approach to addressing greenhouse gas emissions.

ON THE UPSIDE, CARBON MARKETS GOT A BIG PUSH- The global pipeline of carbon offsets is ramping up in the wake of COP29 carbon market agreements negotiators settled on very early on in the summit. Here is a rundown of the offerings we are hearing of:

#1- Brazil’s Tocantins to sell USD 430 mn in carbon offsets by 2030: Brazilian state Tocantins is planning to sell USD 430.16 mn (BRL 2.5 bn) worth of deforestation-linked carbon credits, the government told Reuters on Thursday. The state — located in central Brazil and including bits of the Amazon — hopes to sell around 50 mn credits by 2030, each equating to one ton of carbon sequestered by forests and other flora. However, the final value and number are contingent on the state’s success in reversing deforestation.

What’s next: The state will formally submit the paperwork to validate the credits under the ART-TREEScredit standard (pdf) on Thursday and will formally announce the project at COP29. The coming sale is set to include around 17-18 mn credits for carbon sequestered between 2020 and 2024.

#2- Bolivia targets USD 5 bn carbon credits sale to end deforestation: Bolivia plans to sell USD 5 bn in carbon offset credits to fund efforts to end deforestation by 2030, Reuters reported on Thursday. Sales could begin as early as 2Q 2025, according to Laconic Infrastructure Partners, which is assisting with the sale.

#3- Benin makes first moves in carbon markets: The West African nation has a new “carbon-monetization” strategy including 2.5 mn carbon offsets backed by energy and agricultural projects, Bloomberg reported on Friday, citing Benin’s Finance Ministry. The strategy is backed by the World Bank’s green facilities and the Global Center for Adaptation and is set to contribute to the country’s goal of USD 10 bn in climate finance to meet its targets by 2030.

AND FINALLY- Russia has called on US President-elect Donald Trump to remain in the Paris Agreement, Financial Times reports. Boris Titov, Russian President Vladimir Putin’s special representative, stated that withdrawing from the agreement would be a mistake, advocating instead for making the accord more efficient.

^^ We have more in-depth updates from COP29 in the news well, below.

WATCH THIS SPACE-

#1- Masdar eyes KSA for several renewables projects: Renewables giant Masdar is eyeing Saudi Arabia for battery storage, wind, and solar energy projects, COO Abdulaziz Alobaidli told Asharq Business (watch, runtime: 15:29) on the sidelines of CO29 in Azerbaijan. The potential expansion comes as part of Masdar’s plan to meet the anticipated rise in energy needs of data centers, expected to reach 680 GW by 2030, Alobaidli added.

Masdar is all set to take part in Saudi Arabia’s sixth round of the National Renewable Energy Program, Alobaidli said, and intends to submit a bid for an independent battery storage project that the Saudi Power Procurement Company plans to launch.

Masdar will be on the lookout next year for more acquisitions in Europe and the US, as well as finalizing the acquisition transactions it inked this year, Alobaidi said.

REFRESHER- Masdar is looking to grow “beyond tenfold” in the US over the next three to seven years and wants to reach 100 GW of global energy capacity by 2030.

#2- Actis is eyeing a wider regional push in 2025: General Atlantic’s sustainable investmentarm Actis is evaluating investments in power generation, distribution, district cooling, and solar rooftop assets, with at least four transactions expected to close next year, the company’s Chairman and Senior Partner Torbjorn Caesar Torbjorn Caesar told The National. No further details on the transactions were revealed. The private equity company’s energy fund has a global pipeline valued at USD 33 bn and aims to allocate 20% of it to the Middle East and Eastern Europe, Caesar said.

Actis is active in the region: The PE firm bought a controlling stake in Emirati renewable energy developer Yellow Door Energy, and a 50% stake in district cooling company UAE’s Emicool, in 2022. Earlier in April, a two-party consortium led by the company signed an agreement with Oman’s Hydrom to develop, build, own, and operate a 200k ton per year green hydrogen facility. Actis is also reportedly in talks with the Egyptian government over buying stakes in the 580 MW Gabal El Zeit wind farm and the Zafarana wind farm.

#3- A new mega solar plant from Dewa? Dubai Electricity and Water Authority (Dewa) has issued an advisory service tender (pdf) for an Independent Power Producer (IPP) project including a 1.6 GW solar PV plant and a 1 GW Battery Energy Storage System (BESS). The deadline for submissions is 17 December.

#4- The EU’s deforestation law has been delayed: The European Parliament narrowly voted to postpone the bloc’s deforestation law to December 2025 in order to potentially water down the bill for member countries, Reuters reported on Thursday. The move — championed by the center-right European People's Party with far-right support — will require more negotiations with EU governments for a final compromise.

What is different? The initial bill adopted a risk-based approach that classified countries’ deforestation risk as either “low,” “standard,” or “high.” The higher the country is placed on the risk grading system, the more stringent the requirements imposed on its producers are. The proposed amendments however will introduce a “no risk” category allowing minimal due diligence for countries in this category. The “no risk” category would be granted to countries “with stable or increasing forest area development,” the European Parliament said in a press release.

Not everyone is happy: Environmental groups criticized the move arguing it sends a negative signal as global climate leaders meet in Azerbaijan. Some campaigners, like Julia Christian from European environmental group Fern, condemned the changes as "green protectionism" that favors EU countries while harming producers outside the EU, potentially excluding small-scale farmers abroad from European markets.

REFRESHER- The EU Deforestation Regulation (EUDR) — originally set to take effect in December 2024 — aims to prevent products contributing to deforestation from reaching European consumers. The law bans the sale of goods linked to deforested lands like coffee, cocoa, soy, and palm, and requires companies to digitally map their supply chains to prove their products did not originate from deforested land.

***
YOU’RE READING EnterpriseAM Climate, the essential MENA publication for senior execs who care about the world’s most important industry. We’re out Monday through Thursday by 9am in Cairo and Riyadh and 11am in the UAE.

EnterpriseAM Climate is available without charge thanks to the generous support of our friends at HSBC and Infinity Power.

Were you forwarded this email? Tap or click here to get your own copy of Enterprise Climate.

Want to send us a story idea, request coverage, ask for a correction, or otherwise get in touch? Reach out to us on climate@enterprisemea.com.

DID YOU KNOW that we also cover Egypt, Saudi Arabia, the UAE, and the MENAlogistics industry ?
***