Good morning, nice people. It’s a calm day with a brisk round of updates on the regional renewables scene and climate finance sector. We also have a slew of updates from this week’s EU energy ministers meeting, so let’s dive right in.

WATCH THIS SPACE-

#1- The offering of Al Rajhi Bank’s sustainable five-year USD-denominatedsukuk wraps up today for both domestic and international investors, the bank said in a filing to Tadawul. This is part of the lender’s USD 4 bn Trust Certificate Issuance Programme. The minimum subscription value is set at USD 200k and in increments of USD 1k in excess.

#2- The EU must keep its borders open to solar imports despite moves to support its ailing solar panel manufacturing sector, Reuters reports, citing comments made by EU energy policy chief Kadri Simson to reports upon arrival to a meeting of EU energy ministers. Despite local factory closures, the EU cannot afford to close its doors to imports from China — which dominates the supply chain at over 80% of global manufacturing — if it wants to meet its energy transition targets, Simson said. European firms have been forced to turn to the government for emergency support just to avoid closing down.

Imports are necessary to meet climate goals: Restricting imports could hinder the EU’s ability to hit its climate targets as most of the solar panels used in Europe currently come from China, Simson said. Alternative solutions include increasing state aid for local manufacturers, organizing solar auctions and support schemes for solar panels with higher labor and environmental standards, and encouraging the use of products made in the EU, she added.

A provisional agreement for a new law banning single-use plastic and reducing packaging waste has been reached, according to a statement. The agreement will see packaging phased out with reduction targets set at 5% by 2030, 10% by 2035, and 15% by 2040. It will also mandate that nations in the bloc cut plastic packaging specifically. Packaging has become an escalating source of waste in the EU, increasing from 66 mn tons in 2009 to 84 mn tons in 2021, the statement said.

Keeping up with new consumption habits: Ordering online and “grab and go” consumption habits have led to a surge in packaging waste, Reuters reports. The European Commission first proposed new rules to tackle this issue in 2022. The ban targets single-use plastics such as those used in fast food restaurants and cafes, packaging for fruit and vegetables in supermarkets, and shrink-wrap used for suitcases in airports. The EU parliament also introduced a ban on per- and polyfluorinated alkyl substances, aka forever chemicals, in packaging that comes in contact with food.

What’s next? The agreement still needs approval from the parliament and council before it can be put into effect, and it will likely not happen until the lead-up to EU elections in June, Reuters writes.

And divisions over nuclear energy hold steady: EU members are split on their support for nuclear energy, with France leading the pro-nuclear charge while nations like Germany and Austria are pushing for a focus on renewable energy sources instead, Reuters reports. 13 EU countries are arguing for stronger nuclear policies and funding. "This momentum must now be converted into a comprehensive and enabling European framework for nuclear development, exploring essential policies dimensions including financing," said a letter signed by Bulgaria, Croatia, the Czech Republic, Finland, France, Hungary, the Netherlands, Poland, Romania, Slovakia, Slovenia, and Sweden have signed a joint statement. On the other hand, Austria, Germany, Denmark, Estonia, Greece, Ireland, Italy, Latvia, Luxembourg, Malta, the Netherlands, Portugal and Spain signed a statement calling for funds to be directed towards common renewable energy targets.

Even a greenlight from the EIB can’t end the squabble: The newly appointed president of the European Investment Bank (EIB) Nadia Calviño recently decided to shift the bank’s stance on nuclear power, positioning it in favor of the controversial green energy source. Calviño emphasized the importance of Europe remaining competitive in emerging technologies like modular reactors, despite the EIB's historical avoidance of nuclear investments since the Chernobyl disaster in 1987.

#3-UN-backed banking group to update climate guidelines: The Net-Zero Banking Alliance (NZBA) — a consortium of 143 members who manage USD 74 tn in assets — has proposed new climate guidelines to avoid losing members, Reuters reports, citing people with knowledge of the matters. Members will disclose more information on their climate change commitments without being required to achieve specific actions. The updates come on the back of criticism of ESG policies from US politicians and investors.

A look at the new guidelines: The NZBA's steering group — which includes Bank of America, Citigroup, HSBC, and Westpac — has drafted a proposal that will cover how banks track emissions on their activities and their work with clients on energy transition plans, the newswire writes. Its main goal is to increase disclosure from banks without prompting them to exit the group. NZBA members will vote on the draft in the upcoming weeks.

NZBA does not want to follow in the footsteps of other UN-backed coalitions: Other organizations under the Glasgow Financial Alliance for Net Zero, including Net Zero Asset Managers initiative and the Net Zero Ins. Alliance, have lost over 20 members since 2022. Members feared being hit with collusion lawsuits based on ESG standards.

DATA POINT-

Africa faces a USD 2.5 tn shortfall in climate finance by 2030 amid severe impacts from climate change costing the continent up to 5% of GDP annually, Reuters reports, citing United Nations Economic Commission for Africa chief economist Hanan Morsy. Africa needs increased clean energy investments which currently stand at just 2% of the global total, she added. Climate change continues to be an increasing threat to Africa, causing harm to food security, ecosystems, and economies, according to a World Meteorological Organization report published last September. More than 110 mn people in Africa were directly impacted by weather, climate and weather-related events in 2022, causing over USD 8.5 bn in economic damages.

DANGER ZONE-

#1- The UN has concerns about a potential 60% surge in Earth's natural resource extraction by 2060 jeopardizing climate goals, according to the 2024 Global Resource Outlook (pdf) by the UN Environment Programme's International Resource Panel. This growth — averaging over 2.3% per year — is primarily driven by developed countries, which consume 6x more materials and are responsible for 10x more climate impacts than low-income countries. The tripling of material use over the past 50 years — driven by infrastructure expansion, energy demand, and consumer consumption — has led to a significant increase in resource demand, with over 60% of greenhouse gas (GHG) emissions being attributed to resource extraction and processing.

The details: Harvesting and refining various natural resources — including fossil fuels, minerals, and biomass — are responsible for 55% of GHG emissions and 40% of particulate matter that affects human health. When changes in land use are factored in, the climate impact increases to over 60%, with organic matter being the largest contributor at 28%, followed by fossil fuels at 18%, and a combination of non-metallic minerals and metals at 17%. The use of organic matter, such as crops and forestry, is linked to more than 90% of biodiversity loss and water scarcity related to land use.

Call for systemic changes: To combat the exploitation of resources, the UN report suggests policy changes specifically in high-consumption countries, advocating for dietary shifts to reduce food waste and animal protein consumption, more efficient transport systems, and denser housing built with recycled materials. These measures could cut the projected growth in resource use by a third, reduce emissions by 80%, and improve health, and support economic growth, the report found

ON A RELATED NOTE- The AI craze is also part of the problem: The rapid expansion of AI has led to a significant increase in water consumption (used to cool data centers) by major tech companies like Microsoft, Google, and Meta, The Financial Times wrote. This surge in usage is raising environmental concerns, particularly in light of the global freshwater scarcity crisis. As these companies strive to develop generative AI products — which require substantial computing power and consequently large server farms — the impact on water resources is becoming more pronounced, FT writes.

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CIRCLE YOUR CALENDAR-

The UAE will host the World Future Energy Summit from Tuesday, 16 April to Thursday, 18 April in Abu Dhabi. The summit will address solutions for development in the transformation of future energy systems. The summit will also feature discussions on recycling, waste-to-energy, and air-to-water trends and progressions.

The UAE will host the Connecting Green Hydrogen MENA event from Tuesday, 23 April to Thursday, 25 April in Dubai. The event will explore green hydrogen partnerships, policies, and practices in the region, in parallel to a showcasing of the latest in the clean fuel’s technology.

Oman will host the Oman Sustainability Week from Sunday, 28 April to Thursday, 2 May in Muscat. The event will focus on exploring investment opportunities and implementing best practices in sustainability within the energy, water, and environmental sectors.

The UAE will host The Electric Vehicle Innovation Summit from Monday, 20 May to Wednesday, 22 May in Abu Dhabi. The event will see industry leaders come together to discuss sustainable mobility and tapping into groundbreaking advancements in electric vehicles while engaging with key decision-makers.

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