Good morning, nice people. It’s a big news day for Masdar, with some significant steps taken forward on the company’s Azerbaijani renewables pipeline. We have chapter and verse on the developments in the news well below. But first, an update from IEA on the global renewable scorecard…

THE BIG CLIMATE STORY OUTSIDE THE REGION- The world is off track to triple renewable energy goals by 2030, IEA says: The world is falling short on achieving its goal to triple renewable energy output by 2030, missing the mark by nearly a third, according to a new report (pdf) by the International Energy Agency (IEA). Current efforts to scale up renewable energy capacity are projected to reach nearly 8 TW worldwide by 2030, 3 TW away from the pledge made by 116 states during COP28. IEA’s predictions are based on an analysis of the plans and policies of almost 150 countries. China alone is responsible for almost half of the IEA’s estimated total.

What’s behind the delay? Challenges delaying additional renewable capacity include long wait times for acquiring permits, lack of investments in grid infrastructure, high costs for financing, and the ability to integrate variable renewables quickly and cost- effectively. Additionally, only 14 out of 194 countries have submitted their Nationally Determined Contributions (NDCs) — which outline explicit climate targets for 2030 — despite a nearing deadline under the Paris Agreements to submit the plans in 2025. The hosts of COP28, COP29, and COP30 have sent a letter to the UNFCCC urging countries to submit their NDCs in the first couple of months of 2025.

The story made headlines in the international press: Reuters | Bloomberg | The Guardian | The Financial Times | Axios | Economic Times

WATCH THIS SPACE-

#1- Alterra fund will extend more investments by 2030: The UAE’s climate fund Alterra will direct an extra USD 200 bn to investments to emerging markets and the global south over the next six years, Wam reports, citing comments made by COP28 President Sultan Al Jaber. The venture previously aimed to mobilize USD 250 bn in green investments by 2030.

REMEMBER- The UAE launched the USD 30 bn “catalytic climate vehicle” in December 2023 to improve access to climate funding for the Global South. Alterra’s initial commitment — along with BlackRock, Brookfield, and TPG — was USD 6.5 bn to climate-dedicated funds.

And has made new partnerships since: Global Climate Finance Centre (GCFC) and Alterra joined forces in April to increase climate investments in emerging and developing economies. The investments will focus on furthering low carbon, sustainable, and climate resilient projects.

#2- Aramco sets sustainability targets in new report: Saudi’s oil giant Aramco has set out to reduce its Scope 1 and 2 emissions by 15% by 2035 — to offset 52 mn metric tons of CO2 — and reach net zero emissions by 2050, according to their 2023 Sustainability Report (pdf). The company also aims to store around 14 mn metric tons of CO2 per year from carbon capture and storage projects by 2035, and plans to have a 12 GW portfolio of solar and wind projects up and running by the end of the decade. The oil giant’s outlook also includes investing in planting mangroves inside and outside Saudi and investing in carbon credits to address hard-to-abate emissions.

Aramco is upping its decarbonization efforts: The oil giant inked three MoUs with US companies to develop lower-carbon energy solutions last month. These included an agreement to reduce emissions and energy efficiency, an agreement to explore investing in direct air capture, and an agreement to explore using heat batteries in Aramco’s facilities overseas. Aramco's USD 4 bn venture capital arm Aramco Ventures participated in a USD 80 mn funding round for US-based climate tech company CarbonCapture.

COP WATCH-

COP28 president calls for faster AI integration: COP28 president Sultan Al Jaber has called for a global push to integrate AI into the green transition to expedite sustainable development, Wam reports. Al Jaber announced last month that he is hosting a round of climate talks with energy and tech industry leaders in Abu Dhabi ahead of Azerbaijan's COP29 to discuss the role of AI in the energy transition and their potential to make energy grids more efficient to accelerate the green energy shift.

Would AI actually help? More advanced AI consumes more energy as some 9 bn daily searches using AI would consume 10 TW hours of electricity annually. The IEA warned that the AI industry is expected to spike its electricity demand 10x by 2026. Tech giant Microsoft’s Scope 3 emissions increased 30% from 2020 levels off of its AI expansion which requires the construction of new data centers that demand large quantities of carbon-intensive materials such as cement, steel, and microchips.

THE SCORECARD-

#1- Morocco's renewable energy strategy has “significantly” addressed the nation's energy needs by decreasing energy dependency to 88%, Hespress reports, citing a new study (pdf) by the Arab Democratic Center for Strategic, Economic, and Political Studies. Foreign investments played a substantial role in the country's energy sector, with energy efficiency strategies propelling sectors like transport, construction, and industry towards sustainability and pollution reduction.

The kingdom is on the right track: Morocco’s planned renewables projects are set to turn the country into a major green energy exporter in the next decade, the report concludes, adding that the country’s new development strategy — expected to materialize by 2035 — is creating a strong incentive to improve the country’s energy performance. Morocco possesses the qualifications to contribute to the EU’s plans to import 40 GW of renewable energy by 2050.

#2- World “failing to address the climate crisis,” EPI finds: The world is failing to effectively stop ecosystem loss and mitigate practices that are threatening the environment, according to the latest Environmental Performance Index (EPI) report (pdf). The planet's life supporting systems are facing degradation due to continued reliance on fossil fuels, leading to pollution and rising levels of greenhouse gas (GHG) emissions, the study concluded. The Greater Middle East region had the second lowest score based on region, receiving a median score of 43.2 in the index, a slight increase from 35 recorded in 2022.

What indicators are being studied? The report used 58 indicators to rank nations according to their progress in mitigating climate change, protecting the ecosystem, and promoting environmental health. Countries are given a score from 0-100, with 0 being the worst and 100 the best. Index indicators included projected emissions, public health impacts of exposure to ground-level ozone, and unsafe drinking water levels, amongst others.

UAE + Oman are making progress: The UAE ranked first in the region with a score of 52, with Oman right behind it at a median of 51.9. Both countries have extensive protected areas and have made significant strides in environmental management. The UAE leads in wastewater treatment and biodiversity, while Oman has banned bottom trawling. Oman made significant progress, moving 99 places to reach the 50th position, up from the 149th position in 2022.

While Iraq pulls down our average: Iraq ranked last in the region at 30.4, with low scores in biodiversity and habitat due to minimal protected areas, degraded ecosystems, and a high extinction risk for species. Iraq's heavy reliance on oil and gas has led to a 35% increase in GHG emissions over the past decade.

DANGER ZONE-

Extreme weather is raising the crisis level of hunger amongst children: The number of children facing severe hunger in countries most affected by extreme weather has more than doubled in the past five years, with a 20% increase in 2023 alone, according to a new analysis by Save the Children. Over 33 mn children and 39 mn adults are in “crisis” hunger phases in 18 countries where extreme weather is a primary driver of food insecurity. Numbers have gone from 29 mn people total in 2018 to 72 mn in 2023.

Lack of child-focused climate finance: Only 2.4% of climate funding goes towards supporting projects that include child-responsive activities, leaving over a bn children at risk of claimed-related crises.

Children take the brunt of climate-driven food insecurity: Malnutrition from food crises can lead to stunted growth, developmental delays, and increased risk of disease, the analysis found. Hunger can force families to pull their children out of school or push them into early marriage, which often disproportionately affects girls.

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CIRCLE YOUR CALENDAR-

Turkey will host the International Conference on European Energy Market from Monday, 10 June to Wednesday, 12 June in Istanbul. The three-day event will gather experts from scientific, industry, and policy sectors for discussions on various energy market-related topics. The conference covers themes including energy modeling, market design, regulatory policies, and climate change.

Morocco will host the Morocco Energy Week Summit from Tuesday, 11 June to Thursday, 12 June in Marrakech. The event will gather Morocco's leading energy players, companies and developers alongside financiers and implementation experts to discuss the country’s green transition.

Spain will host the Connecting Green Hydrogen Europe conference from Tuesday, 25 June to Thursday, 27 June in Madrid. The event will see around 5k attendees including industry leaders, energy ministers, and executives to explore solutions, new technologies, and transformative advancements to advance the hydrogen industry.

Saudi Arabia will host the Global EV and Mobility Tech Forum from Wednesday, 10 July to Thursday, 11 July in Riyadh. The event will bring together policymakers, NGOs, and startups.

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