Jordan unveils green-tech tax exemptions, new billing methods for connections to national grid

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WHAT WE’RE TRACKING TODAY

TODAY: Jordan announces tax exemptions for green tech + reveals four billing methods to connect to the national grid

Good morning, everyone. New tax exemptions for green tech in Jordan and the UAE’s growing interest in Malaysia’s carbon-capture sector are the highlights of what is otherwise a reasonably slow late-summer moning.

Outside the region, the big climate story is the European Union’s decision to lower a planned tariff on Tesla’s Chinese-made EVs, saying it will hit Tesla’s vehicles with a 9% charge rather than the 20.8% originally proposed. The decision came after the EU reviewed its decision at the company’s request.

Other companies won’t be spared: The European Commission maintains that China is subsidizing EV production, leading it to say will impose duties on BYD (17%), Geely (19.3%), and SAIC (36.3%). Other companies will see their sales to the EU subject to a duty of 21.3%.

Why did Elon get a break? The European Commission said its investigation found that Tesla received lower subsidies from the Chinese government compared to most Chinese EV manufacturers. The EU said earlier this year that it thought Chinese electric vehicles were unfairly subsidized, telegraphing that it would impose the duties we’re now seeing take shape.

DESALINATION-

US’s Energy Recovery to supply Morocco with seawater desalination tech: American energy tech manufacturer Energy Recovery has secured contracts worth USD 27.5 mn to supply its energy efficient pressure exchanger tech to desalination projects in Morocco, according to a press release. These contracts will supply over 1 mn cubic meters of potable water per day for municipal and agricultural use, benefiting over 600k people.The tech is expected to reduce energy consumption in desalination by up to 60%, and prevent over 475k tons of carbon emissions annually.

REMEMBER- Morocco’s water crisis has reached new levels: Morocco’s water reserves have significantly declined, with filling rates dropping to 27.87% earlier this month. 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. This has been an ongoing problem, with Morocco experiencing five years of drought.

WORTH READING-

Oil and gas companies are the real winners after controversial carbon credit changes: The fossil fuel industry may be the main beneficiary of recent changes allowing greater use of carbon credits to offset emissions, Bloomberg reports, citing comments made by Canada’s former environment minister, Catherine McKenna. McKenna argues that a shift towards prioritizing carbon credits over reducing oil and gas supply would risk allowing these companies to maintain their harmful environmental practices while still claiming to meet climate targets. The former minister’s comments come in response to a recent suggestion by the Science Based Targets Initiative’s board that more carbon credits should be used to abate Scope 3 emissions.

Where does the SBTi stand? SBTi — the world’s leading verifier of corporate net-zero targets — suggested in April that carbon credits could be used to offset Scope 3 emissions — which refers to those produced by a company’s supply chain and customers. This move has sparked controversy in some corner as critics claim carbon credits are a tool for greenwashing rather than a genuine solution to the climate crisis. In response to the backlash, the SBTi said it would maintain its restrictions on the use of carbon credits for corporate climate targets, citing insufficient scientific support for broader use.

DANGER ZONE-

Climate change is increasingly affecting mental health, WHO warns: The World Health Organization (WHO) is calling on Southeast Asian countries to strengthen their mental health systems to address the growing impact of climate change on psychosocial well-being, the Asian News International (ANI) reports, citing comments made by WHO Regional Director to South-East Asia Saima Wazed. “Climate change exacerbates many social, environmental, and economic risk factors for mental health, with Southeast Asia being one of the most vulnerable regions to this,” Wazed said.

How does climate change impact mental health? Studies have found that extreme weather events such as hurricanes, floods, and droughts, can cause psychological distress and trauma.

Rising temperatures, air pollution, and infectious diseases can also lead to increased rates of anxiety, depression, and suicide. The terms “climate anxiety” and “ecological grief” have recently been coined to describe the phenomenon.

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CIRCLE YOUR CALENDAR-

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, and other industry professionals from the power and water utilities value chain to discuss industry trends and challenges.

Saudi Arabia will host the EV Auto Show from Tuesday, 17 September to Thursday, 19 September in Riyadh. The show offers a platform for participants to learn about the latest EV technologies and services.

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

Jordan announces tax exemptions for green tech + reveals four billing methods to connect to the national grid

Jordan announces tax exemptions for green tech equipment, new billing mechanisms: Jordan’s cabinet approved new rules exempting renewable energy and energy efficiency equipment from customs duties and general sales tax, Al Mamlaka reports, citing an announcement made by Jordan’s Energy and Mineral Resources Minister, Saleh Kharabsheh. The policy also introduces new ways for green energy producers to exchange electricity on the national grid.

Background and next steps: Jordan is looking to boost the use of renewable energy and make higher-efficiency electrical appliances and lighting more attractive in a bid to curb the rate at which consumption is going. The rules will come into effect once they’re in the Kingdom’s Official Gazette.

(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)

We knew this was coming: Jordan’s House of Representatives approved in April an amendment to the renewable energy and energy conservation law that outlined the systems, devices, and equipment for renewable energy generation that would be exempt from customs duties and subject to a zero-rated general sales tax. It also adopted the net billing principle, allowing power producers to sell excess energy into the national grid. Under the amended regulation, power producers will receive a credit of JOD 0.40 for every 40 kW sold to the grid.

The list of tax-exempt green tech equipment is growing: The new policy will give tax exemptions to solar and wind energy equipment and materials including metal bases, cables, and transformers. Energy storage systems, concentrated solar power equipment, energy auditing services, solar water heating systems and their equipment, and insulation materials, were also added to the list of eligible products. Solar panels, inverters, solar collectors, and direct water heating pipes already benefited from exemptions.

New methods for green energy storage and trading: The policy outlines four scenarios for integrating renewable energy systems into the electrical grid: net metering when the energy station is located in a different area than the consumer; net metering when the station is in the same location as the consumption site; zero export; and total netting / withdrawal. These mechanisms — the benefits of which depend on the client’s consumption patterns — allow consumers to effectively “store” on the national gride energy generated by their renewable sources. Only owners of renewable energy stations that received approvals before 1 June 2024 will be eligible.

First up: Net metering in different geographies: The net metering scheme is a billing tool that allows an energy producer to add excess generation to the local grid in exchange for credits. It covers projects where the energy station is located in a different area than the point of consumption. Only small and medium industries, hotels, and agriculture businesses that are eligible for this category. These sectors can connect renewable energy stations that have the capacity to cover up to half of their previous year’s energy consumption. While the renewables stations powering industries and agriculture will not have to pay network service fees for trading on the grid, hotels will still have to pay.

Second: Net metering in the same geographies: SMEs, hotels, agriculture businesses, and households can all use the net metering system, which requires that the renewable energy generation site be the same as the site of consumption. In this scenario, households can generate up to 100% of their annual consumption, capped at around 500-1500 kWh per month depending on whether the alternating current power supply system is single-phase or three-phase. The new rules will reduce the network usage fee for households to JOD 1 per kWh per month, down from the current JOD 2.

Third: Zero export: This type of billing method — which also applies to the same sectors excluding the banking sector and extractive industries like cement — allows the subscriber to build a station that produces 100% of their consumption for the last year. However the network service fees may balance out to zero as the fee is calculated by taking into account the electricity tariff applied to the relevant sectors.

Finally: total netting / withdrawal: The fourth mechanism, which applies to all sectors, eliminates network service fees and allows for renewable energy systems to fully cover annual electricity consumption. It also allows consumers to purchase all their electricity at the sector-specific tariff.

Adnoc partners with Petronas + Storegga for a CCS project in Malaysia

Adnoc, Petronas and Storegga want to set up carbon capture and storage sites in Malaysia: The Abu Dhabi National Oil Company (Adnoc) inked a joint study and development agreement with Malaysian energy outfit Petronas and UK-based Storegga to assess the feasibility of CO2 storage in saline aquifers and developing carbon capture and storage (CCS) facilities, according to a press release. The three plan to kick off the study later this year.

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The details: The project targets at least 5 mn tonnes per annum of CCS capacity by 2030. The agreement also includes a study on CO2 shipping and logistics, geophysical and geomechanical modeling, and the application of advanced technologies, such as artificial intelligence, to enhance storage capacity.

What they said: “This agreement with Adnoc and Storegga will potentially allow us to build our capability to develop and de-risk saline aquifers as carbon dioxide storage sites by leveraging on our partners’ expertise and experience in other regions,” CEO of Petronas Nora’in Salleh said in the statement.

Background- Adnoc made its first international equity investment in carbon management back in January, when it took a 10.1% stake in Storegga.

Not Adnoc’s first CCS venture: Adnoc invested USD 15 bn last year in a partnership with the Fujairah Natural Resources Corporation, renewables developer Masdar, and Omani carbon removal and mineralization outfit 44.01 to pilot technology to permanently mineralize CO2 in rock formations located in Fujairah. The firm also announced a final investment decision to set up one of the MENA region’s largest carbon capture projects last September — with the aim to capture and store 1.5 mn tons annually of CO2 within geological formations underground — and signed an agreement with Occidental Petroleum to explore potential investment opportunities in CCS hubs in the UAE and US.

Adnoc has big decarbonization plans: Adnoc secured a USD 3 bn green finance loan from the Japan Bank for International Cooperation last month to support its decarbonization efforts and green initiatives. The company is angling to achieve net-zero emissions by 2045 and is investing some AED 84.4 bn to decarbonize its operations. Adnoc allocated USD 15 bn last year to low-carbon solutions and decarbonization technologies and aims to capture 10 mn tons of CO2 annually by 2030.

Petronas is going all in on CCS: Petronas was amongst a number of companies that agreed to launch a CCS plant at depleted oil and gas fields off the coast of Malaysia last year. The project will kick off operations by the end of 2028 with an initial 2 mn sequestration capacity, with plans to later scale up storage to 5 mn tons by the end of the decade before doubling capacity by the early 2030s. Petronas and Japan’s Jera also signed a joint study agreement to explore the feasibility of establishing a CCS value chain in April.

There’s growing UAE’s interest in Malaysia’s green economy: UAE renewables giant Masdar inked an agreement with Worldwide Holdings Berhad in April to develop 1 GW of renewable energy projects in Selangor, Malaysia, focusing on floating solar, ground-mounted solar, rooftop solar, hydro, and hybrid systems. This comes as part of a larger agreement by Masdar to invest USD 8 bn to build up to 10 GW of renewables projects in Malaysia by 2035. Dubai-based biofuels producer Lootah signed an agreement with Malaysia’s FatHopes Energy to study establishing a sustainable aviation fuel feedstock aggregation storage terminal in Malaysia last year.

Oil field equipment supplier Seven Seas Petroleum will market Sungrow Hydrogen’s electrolysers in Oman

GREEN HYDROGEN-

Oil field equipment supplier Seven Seas Petroleum will market Sungrow Hydrogen’s electrolysers in Oman, aiming to claim a slice of a market that policymakers hope will produce some 1 mn tons of green hydrogen each year, Oman Observer. China’s Sungrow produces inverters; EV chargers for fleets, residences, and public installations; PV systems; storage systems; and other components of renewable energy infrastructure for businesses, residences, and utilities.

Oman has high hopes for hydrogen: Oman is targeting the production of 1.38 mn tons of hydrogen annually by 2030. State-owned Hydrom signed an agreement last year with the Hyport Duqm Consortium — a JV between OQ Alternative Energy and DEME Concessions — for the construction of a green hydrogen production facility to produce some 1 mn tons of green ammonia. OQ Alternative Energy — the green unit of OQ — is also among the backers of the Green Energy Oman clean fuels hub which will aim for a production capacity of 1.8 mn tons of green hydrogen annually, supplemented by 25 GW of renewables..

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WASTE MANAGEMENT-

ADQ + Ne’ma partner to reduce waste: Abu Dhabi sovereign wealth fund ADQ has partnered with the UAE's food loss and waste initiative N e'ma to develop joint projects aimed at reducing food waste across the value chain, according to the Abu Dhabi Media Office. Ne'ma will also supply ADQ with data pinpointing food loss hotspots and systemic issues to facilitate problem-solving. The initiative aims to build collaboration with third parties and stakeholders to help boost their goal.

ADQ is active on waste and food production: ADQ is backing a USD 2.5 mn pilot project by UAE’s Tadweer and the UK’s Aquagrain to deploy Aquagrain's soil enhancing tech which uses organic waste to grow crops in arid lands using 50% less water and inorganic fertilizers. It also launched a vertical farming project in collaboration with Italy’s Zero Farms in ADQ’s AgTech Park last year. The project’s pilot phase spans a surface area of 1k sqm and will yield 10 tons of produce per annum.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

UAE’s Enova earns LEED platinum rating: UAE facilities management firm Enova — a JV between Majid Al Futtaim and Veolia — has received Leadership in Energy and Environmental Design (LEED) platinum certification for the green building design of its UAE head office in Dubai. (Statement)

China greenlights 11 nuclear reactors across five sites

China to build 11 nuclear reactors: China has approved the construction of 11 nuclear reactors across five sites for a total of CNY 2220 bn (c. USD 31 bn), Bloomberg reports, citing China’s state-owned China Energy News. CGN Power — subsidiary of China’s state-owned China General Nuclear Power — got the approval for six reactors, while China National Nuclear got approval for three, and State Power Investment received approval for the remaining two. The reactors will be located in the Jiangsu, Shandong, Guangdong, Zhejiang, and Guangxi regions, with construction set to take around five years.

(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)

This comes a day after China approved five new projects: China’s cabinet just approved five new nuclear power projects. Among these is the first phase of the Jiangsu Xuwei project, developed by a subsidiary of China National Nuclear Power with a designed capacity of 2.86 GW. The project is currently in the preparation stage.

Making strides in nuclear energy: China currently has 56 reactors in operation, meeting around 5% of its total electricity demand, Bloomberg adds. The Chinese State Council approved six new nuclear reactors worth USD 17 bn last year. China’s nuclear generation portfolio is expected to continue expanding, on the back of Beijing approving 10 reactors in 2022.

AI could be trained to hear human destruction of marine ecosystems

AI can help ecologists identify acoustic evidence of harmful fishing practices at a faster rate: A researcher at the University College London, Ben Williams, is using underwater recordings captured in the Indo-Pacific to train an AI tool to identify human threats to marine ecosystems within seconds, Bloomberg reports. Williams is listening for acoustic evidence of blast fishing — a harmful practice that uses explosives to kill fish — to feed information to SurfPerch, an AI that helps monitor coral reef health, the news outlet explained. He is working on the project in collaboration with Google’s UK-based AI research laboratory Google Deepmind.

(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)

How does this help conservation efforts? Ecologists have traditionally relied on audio data to detect threats like poaching, measure animal populations, and assess ecosystem health, the report adds. While humans might spend weeks analyzing 40 hours of recordings, SurfPerch can complete the same task in seconds once fully trained.

But there are challenges ahead: Underwater acoustics present additional challenges as many marine species produce low-pitched sounds that are difficult to detect, and human activities like offshore drilling can interfere with acoustic monitoring.

Enter SurfPerch: SurfPerch addresses these challenges by focusing on the overall soundscape of coral reefs rather than individual species. This approach helps distinguish between healthy and degraded reefs, providing insights that can guide conservation efforts and commercial fishing regulations. The tech currently recognizes 38 distinct marine sounds by learning from a global dataset, including audio contributed by scientists and volunteers through Google’s Calling in Our Corals initiative.

AI is already being used to conserve our oceans: Algerian researcher Dyhia Belhabib developed an AI-powered risk assessment tool called GRACE that can provide real-time information on the likelihood of a particular ship committing environmental crimes. German startup CleanHub also developed an AI-powered platform that helps local waste-management services collect and properly dispose of nonrecyclable plastic.

And land: London-based startup Chirrup AI is leveraging AI to monitor bird populations across around 80 farms in the UK and Ireland, providing valuable data that can influence environmental policies and subsidies.

CALENDAR

AUGUST 2024

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.

10-12 October (Thursday-Saturday): EVs Electrify Egypt Summit 2024, Cairo, Egypt.

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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