Good morning, friends. It’s finally the weekend and the news cycle has slowed significantly, but we have big news this morning emerging from Qatar’s green bond market and an update on Saudi’s renewable energy program. First, let’s check in with the latest on the COP29 front…

COP WATCH-

COP29 host Azerbaijan’s climate efforts are "critically insufficient" due to weakened climate targets and plans to boost gas extraction by over 30% by 2030, according to a new report (pdf) by independent scientific group Climate Action Tracker. The EU signed several gas agreements with Azerbaijan following Russia's invasion of Ukraine leading to a spike in production, which will boost the country’s emissions by 20% by 2030. The country also does not have a netzero target at this time. Azerbaijan is expected to submit an improved climate plan in line with the UN Paris agreement by COP29, but does not include a transition away from fossil fuels in its nationally determined contributions.

IN OTHER NEWS- COP29 offers to foot the bill for SIDS: Azerbaijan has offered to cover costs for almost 40 negotiators from climate vulnerable small island developing states (SIDS) at COP29 to ensure the talks are inclusive, Reuters reports, citing an unnamed COP29 official. Countries are set to negotiate a new financing target at COP29 to help developing countries combat climate change, a problem which has a direct effect on SIDS. Azerbaijan has offered to cover travel, accommodation, and other costs for four delegates from each state.

WATCH THIS SPACE-

#1- Tunisia is developing a new strategy to diversify energy production, rationalize consumption, and boost investments in renewables, TAP reports. The nation is aiming for energy independence and encouraging private investment in renewables, especially green hydrogen. Several unnamed decarbonization projects have been launched to cut fossil fuel use, diversify the energy mix, and enhance energy efficiency.

#2- Iran courts Brics members to strengthen ties on energy cooperation: Iran presented proposals for developing industrial and technical cooperation at a Brics Committee of Senior Energy Officials to increase cooperation on areas including renewable energy, Iran’s energy minister Abbas Aliabadi told Mehr News.

ICYMI- Iran said it was looking to initiate nuclear talks at the UN General Assembly in New York if “other parties are willing,” according to Foreign Minister Abbas Araqchi. The minister prolonged his stay in New York to hold meetings with other foreign ministers regarding a nuclear accord signed in 2015 with six other countries.

#3- The European Central Bank (ECB) has begun doling out fine notices to banks failing to meet its deadline to disclose and manage climate risk, ECB climate change center head Irene Heemskerk told Reuters. “Losses for euro area banks could be on average almost three times higher than they would be under a Paris-aligned, resource-efficient future scenario," the bank said in a bulletin article. Germany would experience the biggest losses due to its dependence on biodiversity levels.

How much is the fine? The actual fines haven't kicked in yet and will have to be paid if lenders fail to meet the ECB’s remedial deadlines, Heemskerk said. The size of the fine depends on the bank’s profits and size, meaning it could reach a substantial amount, Heemskerk said.

ECB says don’t say we didn’t warn you: The ECB’s expectations were no secret and the bank had already warned that it “won’t shy away from enforcement measures,” if its interim or year-end deadlines were missed, Heemskerk added. The most recent warnings came in June when the bank was assessing the extent of non-compliance to decide on the penalties which they said could amount to up to 5% of daily revenue.

#4- Biden administration targets Chinese car tech: The US has proposed a ban on Chinese connected-car technology in a bid to tighten the influx of Chinese EVs imports, Reuters reports, citing a statement from the US Commerce Department. The administration hopes to finalize the ban before President Biden leaves office in 2025, with the broader goal of encouraging Americans to buy US-made EVs over Chinese models. This move follows 100% tariffs on Chinese EVs and exclusion of Chinese-made components from EV subsidies.

What does this mean? Unlike previous measures, the connected-car tech ban would extend to cars built by Chinese firms outside China, such as in Mexico or Europe. The proposed rules, set to take effect between 2026 and 2030, are designed to prevent Chinese software and hardware from entering the US market, protecting automakers like Tesla from Chinese competition in autonomous vehicles. US officials cite national security concerns, fearing Chinese tech could enable espionage or remote control of vehicles, Reuters writes.

DANGER ZONE-

Iran groundwater depletion crisis begins to impact infrastructure: Iran is experiencing a groundwater depletion crisis which has begun to manifest in cracks, sinkholes, and land subsiding over 10 cm annually, according to a Leibniz University report (pdf) which used 2014-2020 satellite data. Airports, roads, and railways are feeling the effects with 3.5% of the country’s area subsiding. Replenishing the lost water could take hundreds to thousands of years, researchers Mahmud Haghighi and Mahdi Motagh said in the report, emphasizing the “urgent need for action.”

Extraction is the source of the problem: Over extraction of groundwater supplies for irrigation is the main driver of the crisis, the report says. Kerman province — the country’s pistachio production region — is the most affected with over 35 cm of annual subsidence rates recorded. Compared to the world, Iran is in the top ranks of subsidence rates.

THE SCORECARD-

Saudi Arabia led sustainable sukuk issuances in the GCC during 1H 2024, accounting for 42% of the region’s issuances, followed by the UAE at 33%, Zawya reports citing a report by credit ratings agency Moody’s. GCC countries contributed 82% of global sustainable sukuk issuance in 1H 2024, with total issuance rising 21% y-o-y to USD 6.8 bn. Saudi entities accounted for 33% of the global cumulative sustainable sukuk volume from 2015 to 1H 2024, followed by Malaysia and UAE contributing 21% each.

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CIRCLE YOUR CALENDAR-

Egypt will host the Portfolio Egypt conference on Monday, 30 September in Cairo. The event aims to enhance cooperation among Arab stock exchanges and will cover crucial topics including market integration, product diversification, carbon markets, and regional debt markets. It will aim to outline recommendations to strengthen regional financial markets.

Egypt will host Cairo Sustainable Energy Week from Tuesday, 1 October to Thursday, 3 October in Cairo. The event will bring together policymakers, companies, and experts to discuss collaboration on the renewable energy transition across 17 Arab countries.

The UAE will host the World Green Economy Summit from Wednesday, 2 October to Thursday, 3 October in Dubai. The summit will promote the push for a green economy and will offer a platform for international entities to collaborate on sustainable development, financing, and policymaking.

Egypt will host the EVs Electrify Egypt Summit from Thursday, 10 October to Saturday, 12 October in Cairo. This event will bring together industry players, engineers, and over 300 exhibitors for interactive showcases and EV test drives.

Egypt will host Cairo Water Week from Sunday, 13 October to Thursday, 17 October in Cairo. The event will explore various themes relating to water and climate and enhancing resilience in communities.

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