Good morning, friends. It’s a busy morning with a heavy dose of IPO updates and we have an update from Algeria’s progress on its solar power program. Shall we?

THE BIG CLIMATE STORY OUTSIDE THE REGION- There is no single story driving the conversation in the industry abroad, but the plan to auction 12 offshore wind projects in the US got some buzz. The Biden administration kicked off a comprehensive plan to auction up to twelve offshore wind development rights auctions by 2028, with four slated for this year. The initiative aims to boost the slowing US offshore wind industry, which has faced challenges from inflation, interest rates, and supply chain issues. The schedule is designed to provide stakeholders with the predictability necessary for planning and investment in large-scale projects. The story grabbed ink in Reuters, AP, and Bloomberg.

WATCH THIS SPACE-

#1- Egypt’s Siwa Oasis is getting more solar power: The Egyptian Electricity Holding Company (EEHC) invited interested local and foreign companies or consortiums to submit expressions of interest for the design, construction and operation of an 8.2 MW off-grid solar power plant, as well as a 2 to 4 MWh battery storage system in Egypt’s remote Siwa city, according to a document (pdf) published by the state-owned company. The submission deadline is in June with the project set for completion 24 months after signing the contract.

The plant will be the second renewables plant in Siwa: In 2015, UAE’s state-owned renewables giant Masdar began operating a 10 MW solar PV power plant in Siwa, which at the time stood as the first utility-scale solar power installation in Egypt, accounting for 30% of the grid capacity of Siwa and its adjoining areas. The project was part of a UAE-backed grant program for rural electrification in Egypt, which included providing solar energy solutions to electrify 264 rural villages and communities lacking reliable access to electricity and not connected to the national grid.

#2- The EU votes to exit controversial energy treaty: The European Parliament has approved the EU’s exit from the Energy Charter Treaty (ECT) — an international agreement set up to protect energy investments — as it undermines efforts to transition to clean energy and meet netzero targets, Reuters reports. Denmark, France, Germany, Luxembourg, Poland, Spain and the Netherlands all signaled their intentions to quit before Brussels suggested a joint exit. The approval will pave the way for EU countries to make a final decision in May, while some EU countries like Cyprus and Hungary are hoping for a chance to reform the treaty before making an exit.

Why is the treaty problematic? The ECT allows energy companies to sue governments over policies that eat away at their investments, and has been used to seek compensation for shutting down fossil fuel plants.

The European Parliament also approved a new law banning single-use plastic and reducing packaging waste, Reuters reports. Under the new bill, “single-use plastic packaging items for fruit and vegetables, condiments in fast food restaurants, thin plastic bags for groceries and mini cosmetics bottles in hotels” will be banned in the EU starting 2030, and countries will be required to collect at least 90% of single-use plastic bottles and cans each year from 2029, in efforts to boost recycling, the news outlet adds. Drinks distributors will also have to ensure that 10% of their products are in reusable packaging by the end of the decade, and take-away food outlets will be required to provide customers the option of bringing their own reusable cups or containers in the same period. The implementation of the law is still awaiting final formal approval from EU countries.

#3- US lobby pushes for carbon offset approval by SBTi: Former US climate envoy John Kerry’s advisers are boosting its lobby to push the Science-Based Targets initiative (SBTi) into accepting carbon credits as a legitimate offset for corporate pollution, The Financial Times writes. The Energy Transition Accelerator — a scheme proposed by Kerry with the aim of funding clean-energy projects in developing countries through the sale of carbon credits to corporations — is supported by Andrew Steer, president of the Bezos Earth Fund, and the Rockefeller Foundation, key financial backers of the SBTi, making the pressure on the initiative to give the green light for carbon offsets relatively high.

The lobby is already proving successful: The SBTi board recently signaled openness to their use for addressing indirect emissions despite concerns about the integrity of carbon credits, despite often being criticized for the system’s tendency to overstate greenhouse gas reductions, FT writes.

The debate is heating up: The debate over carbon credits has intensified within SBTi, with some staff members expressing frustration over the influence of political, corporate, and philanthropic backers of the carbon credit industry, FT adds. The SBTi — which requires companies to pledge a 90% emissions cut by 2050 — faced sustained pressure to endorse carbon offsets, ignoring warnings from experts that this may cause the diversion of bns of financing away from actual emission reduction projects, and towards the less effective purchase of carbon credits.

#4-Tesla saw its shares surge 13% following an announcement that it will begin production of an affordable EV model by 2025,CNBC reports. Consumers can expect the EV giant’s long awaited low cost vehicle to begin production by early 2025 or even later this year, CEO Elon Musk told investors.

A much needed reprieve: Tesla is going through a rough patch, with shares dropping 9% y-o-y in 1Q 2024, CNBC writes. This marks the company’s steepest drop since 2012. Shares also fell by 40% this year as global competition in the EV sector increased.

DANGER ZONE-

The UAE’s severe rain and flooding are just the latest in a series of worsening global climate crises, The National reports, citing comments made by UAE’s Permanent Representative to Irena Nawal Al Hosany at a conference. “Those flash floods are the latest in a stream of extreme weather events that are only growing longer and more devastating,” Al Hosany said. Flash floods are becoming increasingly frequent, affecting areas from Bolivia to Kazakhstan.

The UAE warns about the consequences of increased extreme weather: There could potentially be 1.2 bn climate refugees by 2050, and damages to farming, infrastructure, productivity and health are anticipated to cost about USD 38 tn per year until 2050, according to Al Hosany. Urgent action is needed to mitigate the impact of climate change, especially on vulnerable populations.

REFRESHER- The UAE just experienced its heaviest rainfall in decades: Flooding, damage, and power outages were reported across the Emirates last week due to the heaviest rainfall the country has seen in 75 years, with a year’s worth of rain falling over the country in a single day.

OUR NEXT CONFERENCE IN CAIRO-

Foreign investors are falling in love with Egypt again… Foreign investors we speak with (debt, equity, and strategic alike) have growing appetite for Egypt. They’re buying into local debt, eyeing promising shares, and committing bns of USD to both new ventures here and the growth of their existing businesses. They like the Egypt story that’s taking shape after the float of the EGP, and its competitive advantages are clear to many of them: It’s a massive consumer opportunity and a regional export hub of tomorrow.

The Enterprise Optimism Forum 2024 will do exactly what it says on the tin: Spark conversations about a future that sees Saudi Arabia, Egypt, and the the UAE at the heart of a more vital Middle East economy — and provide an early, actionable roadmap for those who are “long Egypt.”

We’ll be talking with you about the agenda over the coming couple of weeks. It features speakers from Egypt and abroad who are future-proofing their businesses and angling to capture tomorrow’s opportunities — and who aren’t afraid to answer some tough questions.

*** Interested in attending? Tap or click here to let us know. Seating is limited.

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EXPLORE MORE OF ENTERPRISE ON THE WEB —tap or click here to read EnterpriseAM, EnterprisePM, Enterprise Climate, Enterprise Logistics, and The Weekend Edition on our powerful new website packed with reader-friendly features.

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CIRCLE YOUR CALENDAR-

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.

Italy will host the G7 Ministerial Meeting on Climate, Energy and Environment from Sunday, 28 April to Tuesday, 30 April in Piemonte. The meeting will focus on pressing climate, environment, and energy challenges.

Saudi Arabia will host the Saudi Water Forum from Monday, 29 April to Wednesday, 1 May in Riyadh. The forum will facilitate dialogue among water sector leaders, experts, and stakeholders to address challenges and share expertise. It will feature presentations by key entities in the water industry focusing on integrated solutions, showcasing successful water projects, and promoting investment opportunities for sector development.

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.