Good morning, friends. TGIT, because It’s another bumper issue with news flowing in fast and hard from across the region. We have a bit of everything this morning, with some significant investment news to delve into from Qatar and a major update on Saudi’s mega CCS hub in Jubail. Let’s jump right in.

THE BIG CLIMATE STORY OUTSIDE THE REGION- There’s no single story dominating the headlines, but Coca-Cola — the world’s top plastic polluter for the last six years — has scaled back its “voluntary environmental goals,” cutting down different of its recycling targets. The company will now target 35%-40% recycled material use in its packaging by 2035, down from the previous goal of 50% by 2030. It also scrapped its goal of recycling to collect and recycle every can or bottle it sells by 2030, aiming now to “ensure the collection” of 70-75% bottles and cans it sells entering the market annually with no timeline for achieving that goal as well.

That’s not all: It also pushed back its 25% emission reduction goals from 2030 to 2035 and changed its baseline from 2015 to the more recent 2019, according to a statement.

A ‘masterclass in greenwashing’: Environmental groups have blasted the company, with groups like Oceana describing the decisions as “short-sighted” and “irresponsible” that should receive “widespread condemnation by its customers, its employees, its investors, and governments.” Break Free from Plastic called the move a “masterclass in greenwashing.”

The story grabbed some ink in the international press: CNN | Financial Times | The Guardian | Washington Post

WATCH THIS SPACE-

#1- Acwa Power is planning to invest up to USD 50 bn in China by 2030, focusing on renewables, green hydrogen, and desalination, Acwa Executive Vice President for China Lyu Yunhe told Bloomberg (watch, runtime 6:00). The company is aiming to reach 1.3 GW of renewable energy capacity in China by year-end, with expansion targets of 4-6 GW in 2025 and 5-6 GW annually thereafter.

Acwa Power also plans to begin construction on its first water purchase agreement with the Shandong government next year and will collaborate with state-owned Chinese firms for both domestic and international projects.

ICYMI: Lyu told Asharq Business earlier this week that Acwa plans to invest between USD 6-10 bn in China next year, after already investing USD 2 bn during its first year of operations in China.

#2- OFID is upping its climate financing: The Opec Fund for International Development (OFID) raised its climate project financing target for low and middle-income countries to at least 50% by 2030 — up from the previous goal of 40%, OPIF Manager Abdulhamid Alkhalifa told Asharq Business (watch, runtime 8:38). Saudi Arabia plays a significant role in OFID — being the largest contributor with over 30% — supporting climate change initiatives including clean cooking initiatives in low-income countries in Africa and parts of MENA, he added. Last year, OFID allocated 34% of its funding — USD 1.7 bn — to 55 climate projects, of which 42% were in Sub-Saharan Africa, Asharq Business reported, citing data from OFID’s annual report.

#3- Saudi Arabia’s Neom Green Hydrogen Company aims to localize the production of hydrogen compressor equipment, CEO Wissam Al-Ghamdi told Asharq Business (watch, runtime 11:01). The company is currently completing its green hydrogen production plant in partnership with Acwa Power which is on track for its scheduled opening in December 2026, with 60% of the construction already finished.

ICYMI- KSA’s Neom Green Hydrogen Company (NGHC) – a JV between Neom, Acwa Power, and Air Products – tapped China's JinkoSolar in July for 1 GW of solar modules for the solar energy plants powering its USD 8.4 bn utility-scale green hydrogen facility. The plant aims to produce 1.2 mn tons of green ammonia annually.

#4- EU plans EUR 4.8 bn in green investments: The European Commission plans to invest a total of EUR 4.6 bn to advance projects focused on decarbonization technologies, EV battery cell manufacturing, and green hydrogen production, according to a press release. The investments will be disbursed to projects around the continent whose proposals pass the requirements and will be supported by a top-up of 200 mn.

The breakdown: The calls of proposals for decarbonization technology projects will dole out a total of EUR 2.4 bn, while renewable hydrogen projects are set to get EUR1.2 bn from the EU’s European Hydrogen Bank, in addition to a parallel contribution from three member states totaling EUR 700 mn — disbursed through the same mechanism. The EV battery cell manufacturing sector will snap EUR 1 bn through the call of proposals, plus a EUR 200 mn loan guarantee from a partnership between the commission and the European Investment Bank (EIB) through the InvestEU program.

What’s next: Net zero tech and battery projects have until 24 April 2025 to submit their proposals via the EU Funding and Tenders Portal. Successful applicants are expected to sign grant agreements by the first quarter of 2026. For the renewable hydrogen auction, the application deadline is 20 February 2025, and successful bidders will sign Grant Agreements by the end of that year.

What is the Innovation Fund? The Innovation Fund is the EU’s climate policy fund that invests in decarbonization and climate tech projects to scale up their tech. Funded by the EU Emissions Trading System, it covers projects in all EU countries — plus Norway, Liechtenstein, and Iceland — through grants and competitive bids, ensuring a diverse and balanced project pipeline.

IN OTHER EU NEWS- EU to delay deforestation law at last: The European Council and the European Parliament have reached a provisional agreement to postpone the application of the EU deforestation regulation by 12 months, according to a press release. The regulation — which would ban imports linked to deforestation — will now take effect on 30 December 2025 instead of at the end of this month.

The rationale: The European Council said that the postponement aims to provide additional time for impacted players — including EU member states, non-EU trading partners, and the private sector — to prepare for the law, which is set to impact a wide range of products like cattle, wood, cocoa, soy, palm oil, coffee, and rubber.

REMEMBER- Many have been calling for halting the law: Some of the bloc’s trading partners in the global south, such as Brazil, Malaysia, and India, criticized the bill, saying that it would especially harm poorer, small-scale farmers who are unable to adapt to the bill’s requirements, effectively severing them from the EU market. Earlier in March, 20 EU-member countries also said they wanted the law postponed.

What’s next? The provisional agreement must now be endorsed by both the Council and Parliament before formal adoption. Once adopted, it will be published in the Official Journal of the EU before 30 December.

DANGER ZONE-

The aviation sector’s switch to SAF is moving too slowly, undermining its emission reduction trajectory, Reuters reported earlier this week, citing a Transport and Environment (T&E) report (pdf) . At current adoption rates, the sector would barely cut its emissions by 1% by 2030, the report warned. SAF — which costs 2-5x more than traditional fuel — only makes up about 1% of aviation fuel use on the global market, the newswire writes. "While we would have liked to increase our investment in SAF, the low availability … and high costs … have limited our ability to do so, considering also our start-up condition," a spokesperson for Italy’s ITA Airways told Reuters.

Stakeholders are not investing enough: Big Oil is not investing enough in the alternative fuel which is holding back the market’s growth, and current SAF production is shouldered by startups. While some airlines are putting in the effort — AirFrance-KLM, United Airlines, and Norwegian Air — about 87% are not, and those who are might still not be doing enough to meet their targets.

THE SCORECARD-

Sustainability bonds hit 11-month low: The global sustainable bond market hit its slowest month of the year so far in November due to investors backing out and fear of instability following the US elections, Bloomberg reports. Bond sales reached USD 60.2 bn last month compared to USD 81.8 bn in November of last year. November is a seasonally low time for bond sales, but this year’s November was the slowest since 2019

Why is this happening? Sovereign funds have fulfilled their sustainable borrowing needs ahead of the US elections and are most likely done for the rest of the year, according to Bloomberg Intelligence analyst Christopher Ratti. Adani Group backed out of a USD 600 mn bond offering on the back of a US bribery indictment which also contributed to the drop.

“December is also going to be light,” Ratti anticipates.

***
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 ?
***

CIRCLE YOUR CALENDAR-

UAE will host the International Mangrove Conservation and Restoration Conference from Tuesday, 10 December to Thursday, 12 December in Abu Dhabi. The conference — happening in parallel to Riyadh’s COP16 on desertification — will gather global scientists and conservation experts dedicated to mangrove and coastal ecosystem restoration, seeking to share research, innovative approaches, and best practices for holistic restoration, including habitat diversity, connectivity, and climate resilience.

The UAE will host the World Energy Summit from Tuesday, 14 January to Thursday, 16 January in Abu Dhabi. The summit will host over 350 speakers including energy industry leaders and policymakers with discussions ranging from eco-waste to sustainable cities. An exhibition will also be held for showcasing green products.

Saudi Arabia will host the Future Minerals Forum from Tuesday, 14 January to Thursday, 16 January in Riyadh. The forum will gather stakeholders from over 170 countries to discuss mineral technology and exploration. Speakers will include senior government officials and CEOs from renowned mining companies Vale, Rio Tinto, and Manara.

Bahrain will host the Sustainability Forum Middle East from Tuesday, 28 January to Wednesday, 29 January in Manama. Climate experts and decision-makers will convene to discuss a number of issues ranging from decarbonization to supporting SMEs on their path to net zero. Speakers will include GCC government officials and industry leaders from the banking and industrial sectors.

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