Good morning, ladies and gents. It was a fairly quiet weekend for the regional climate sector, but we have a full rundown of the green finance and policy updates from the region and beyond.

THE BIG CLIMATE STORY OUTSIDE THE REGION- US overhauls disaster relief program: The US will launch the most major reform in two decades to its Federal Emergency Management Agency (FEMA) in a bid to alleviate the economic toll climate-driven extreme weather has on vulnerable communities. Set to take effect on 22 March, the new reforms will see FEMA expand financing for its disaster relief program to USD 750 per person. Critical needs assistance was previously assessed on a case-by-case basis, and the new regulations are expected to cut through the normal application red tape that states and tribal nations had to go through to access relief funding.

The story made headlines in the international press over the weekend: Reuters | AP News | The New York Times | The Washington Post | CNN

WATCH THIS SPACE-

#1- Acwa Power pushes up launch date for Kom Ombo solar plant: Saudi renewables giant Acwa Power’s 200 MW Kom Ombo solar farm — initially targeted for launch in 3Q 2024 — is 82% done and due to be completed by April this year, generating enough power for about 130k households once fully operational, according to a statement released on Saturday. Once online, the project, which will span 4.8 sq km and contain over 387.4k bifacial solar panels, will be connected to the country’s electricity grid through a 33/220 kv interconnection station and offset an estimated 280k tons of carbon emissions annually.

Price tag: The cabinet says the project is expected to have a USD 168 mn price tag. Acwa power secured bridge loans worth some USD 45 mn from Apicorp and USD 14 mn from the European Bank for Reconstruction and Development (EBRD) in 2021 to bankroll the project. The company also secured last April another USD 36 mn from the EBRD, USD 14.6 mn from the OPEC Fund for International Development, and USD 24.4 mn from the African Development Bank (AfDB). The United Nations’ Green Climate Fund (GCF) also said it will extend USD 34.5 mn in funding and the Arab Bank will contribute USD 14.8 mn for financing the project.

#2- Masdar’s 1 GW solar project in Iraq is almost underway: Masdar's 1 GW solar project in Iraq — first announced in 2021 — has been referred to the cabinet for review and is now pending final approval and tax exemptions for the investor, Iraqi News Agency reported on Friday, citing comments made by Iraq’s Electricity Minister Ziyad Ali Fadel. Masdar has been planning to establish 1 GW of solar projects across four regions in Iraq including a 450 MW farm for the Dhi Qar governorate, 100 MW and 250 MW plants planned in Ramadi city in Anbar governorate, a 100 MW plant in Nineveh governnate’s Mosul, and another 100 MW plant in Maysan governate’s Amarah, Zawya Projects reported at the time. A delegation from Masdar met with Fadel in August to discuss the projects.

#3- UAE’s Offset8 plans a Japanese expansion: Abu Dhabi-based asset manager Offset8Capital — which specializes in nature-based carbon removal projects — plans to launch an office in Tokyo by 3Q 2024, the company’s co-founder Jules Maitrepierre told Asharq Business on Friday. In efforts to ramp up its investments in Japan, the company aims to double its workforce in the East Asian country by 2025, Maitrepierre noted. The company has to date inked USD 35 mn in non-binding financing agreements with both local and foreign financial institutions, and has identified over 50 carbon removal projects, the news outlet said.

Offset8 is still building up its pipeline: Offset8’s current pipeline of projects and partnerships are focused on reforestation, mangrove planting, water purification, biochar, and biodiversity initiatives in Africa and South-East Asia, according to their website. Offset8 is also working on a carbon project visualization and carbon project platform in the Middle East, their website added.

REMEMBER- Offset8 wants to launch a carbon investment fund: The company said it plans to raise USD 250 mn in a bid to establish a “ first of its kind ” carbon investment fund with targeted investments across some 29 markets last July. The fund will target climate mitigation and adaptation projects with a focus on mangrove restoration and reforestation. Offset8 is particularly eying Africa and Southeast Asia’s CO2 offsets markets as it looks to generate high-quality carbon credits in line with the Core Carbon Principles set by the Integrity Council for the Voluntary Carbon Market.

#4- Scatec eyes solar plant for aluminum production in Egypt: Norwegian renewables company Scatec is exploring setting up a 1 GWh solar plant to power Nagaa Hammadi Aluminum Smelter's operations, according to a statement released on Thursday. The project would be completed in two 500 MWh phases, the first of which is expected to be completed 18 months after signing the contract, and the second within 24 months. No financial details for the project were disclosed.

ALSO- EBRD completes funding review for Hassan Allam Utilities: The European Bank for Reconstruction and Development (EBRD) has completed the review for a potential USD 75 mn equity investment into Egypt’s renewables sector, with Hassan Allam Utilities’ 1.1 GW wind farm in the Gulf of Suez standing as a top contender, according to a project summary document posted on EBRD’s website last week. The statement also mentioned that the funds could go to a planned 2.5 GW wind project near Sohag, as part of a bigger 10 GW project currently in the early stage of development.

What’s next? EBRD is set to approve the funding for Hassan Allam Utilities’ wind project on 21 February, pending the selection of a wind turbine supplier and the finalization of the supply chain due diligence process. The project is expected to offset some 2.8 mn tons of CO2 annually.

#5- EU unveils plan to reach net zero by 2050: The EU will require companies with the ability to power their production methods with green energy to make the transition, while those lacking the capacity will be obliged to capture their emissions instead, Reuters reported last week, citing a draft European Commission Plan outlining how the bloc aims to get to net zero by 2050.

What does the draft entail? The EU aims to capture 450 mn tons of CO2 per year by 2050, and remaining emissions from European industries — especially the cement and chemical sectors — must also be captured and stored at the same date, Reuters said. The draft also states that 100 mn tons of the emissions would be captured from the power sector, and another 200 mn will be captured directly from the atmosphere. The captured CO2 will be permanently stored underground or used in industrial processes.

AND- Heavy-duty vehicles will have to make major CO2 cuts in the bloc: The European Parliament and Council have reached an agreement to impose stricter standards for CO2 emissions from heavy-duty vehicles that are set to hit the market starting in 2030, according to a statement from the EU Commission on Friday. The targets imposed will affect nearly all trucks, urban buses, long-distance buses and trailers and will require emissions to be reduced by 45% in 2030, 65% in 2035 and 90% in 2040, in comparison to 2019 levels. Trailers and semi-trailers will have to cut emissions by 7.5% and 10% respectively, while all new urban buses will have to reduce emissions by 90% in 2030 and reach net-zero by 2035.

There’s still a long way to go: The EU will need to revise its policies if it aims to successfully deliver net zero emissions by 2050, Reuters reported on Thursday, citing a new report published by the European Scientific Advisory Board on Climate Change. Despite pushing for a phase out at COP28, the EU is underperforming in all sectors and immediate action is needed alongside long-term reforms for post-2030 climate framework policy, the advisory board warned in its report, according to the newswire. On the same day, the European Commission said it will put forward a recommendation next month to have the bloc target a 90% reduction in greenhouse gas emissions by 2040 compared to 1990 levels, Reuters reported. The EU currently has a goal of cutting emissions 55% by 2030.

#6- Libya prepares for EU interconnection project: Libya's General Electricity Company has begun studies to implement the electrical interconnection project with Malta, Greece, and Italy, according to a statement released on Wednesday. This is part of the country's plan to diversify its energy sources in order to ensure the stability of its network, the statement said. Libya had signed agreements in December to export solar energy to the EU, Libyan news outlet AlWasat wrote on Wednesday. Libya and Malta discussed the project, on which both countries signed an MoU last June, at the Libya Energy and Economic Summit last Saturday, the outlet added.

ALSO- The country is looking to attract investors from Turkey to implement its renewable energy strategy of generating 4 GW in renewable energy by 2035, Renewable Energy Authority of Libya CEO Abdul Salam Al-Ansari told Turkish state news agency Anadolu Ajansı. The strategy — which will account for 20% of Libya’s energy needs — will be implemented in three phases. The first phase targets the installation of 1.7 GW by 2027, followed by a second phase of 2.5 GW by 2030, and finally an additional 4 GW by 2035. Libya has also launched its Go Green initiative to install solar power systems for individuals, businesses, and agriculture and is conducting a joint study with the National Oil Corporation on green hydrogen.

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CIRCLE YOUR CALENDAR-

The UAE will host the Management and Sustainability of Water Resources Conference from Monday, 26 February to Wednesday 28 February in Dubai. Water availability in arid and semiarid regions, global water issues, and future water and environmental challenges are all on the agenda.

Saudi Arabia will host the International Conference on Sand and Dust Storms in theArabian Peninsula from Monday, 4 March to Wednesday, 6 March in Riyadh. The conference will address regional challenges caused by sand and dust storms and discuss monitoring systems, mitigation strategies, economic and infrastructural impacts, and more.

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