Good morning, folks. T-G-I-T. We’re closing out the week with a bumper issue covering all the climate things from renewables to decarbonization to project financing. Let’s dive right in.

THE BIG CLIMATE STORY- The World Future Energy Summit will wrap today in Abu Dhabi. The three-day summit saw discussions around the transformation of future energy systems, as well as recycling, waste-to-energy, and air-to-water trends and progressions. We have a rundown of all happenings from the summit in the news well, below.

THE BIG CLIMATE STORY OUTSIDE THE REGION- Climate change will cost us USD 38 tn in damages: The economic impacts of climate change to agriculture, infrastructure, and health could rack up an estimated USD 38 tn annually in costs by 2050, a recent study (pdf) reveals. The cost of implementing measures to limit global warming to 2°C above pre-industrial levels would be significantly lower than the projected damages. Global emissions continue to rise, however, and the study warns that if this trend persists, the economic toll could result in a 60% income loss by 2100. The research highlights the urgent need for increased investment in both emission reduction and adaptation strategies to mitigate the severe financial consequences of climate change.

The story made headlines in the international press: Reuters | AP | Bloomberg | The Guardian | CNN

WATCH THIS SPACE-

#1- UAE’s cloud seeding program did not trigger this week’s floods, the National Center of Meteorology’s deputy director general Omar AlYazeedi told CNBC, denying claims reported earlier by Bloomberg that the center carried out cloud seeding missions earlier this week, causing the heavy rainfall. “We take the safety of our people, pilots, and aircrafts very seriously. The NCM does not conduct cloud seeding operations during extreme weather events.”

There’s a media frenzy out there with features on the tech and why it’s an unlikely culprit for the severity of the storm. The more likely culprit, according to scientists? Climate change, which causes warm air to hold more moisture and can lead to heavier rainfall: Wired | The Guardian | Sky News | AP | Washington Post | Axios

#2- Taqa confirms it wants Naturgy, but isn’t talking to Naturgy directly: Abu Dhabi National Energy Company (Taqa) confirmed reports it is in talks with two large shareholders — CVC and GIP — to potentially acquire their stakes in Spanish renewable energy player Naturgy, according to a disclosure (pdf). The company also confirmed it is discussing “a potential cooperation in relation to Naturgy” with the company’s largest shareholder, Criteria Caixa. However, Taqa denied that it is in direct talks with Naturgy.

#3- Construction on the USD 2.2 bn, 800 MW Mohmand Hydropower Dam Project in Pakistan is complete, SPA reports. The project supports agricultural development over 6.7k hectares, improving food security and livelihoods for farmers, while enhancing flood management capabilities to protect communities and infrastructure from seasonal floods.

Regional players funded the project: The Saudi Fund for Development (SFD) — a government institution that provides loans for development projects — extended a USD 240 mn soft loan to finance the Mohmand Hydropower Dam Project last year. The OPEC Fund loaned Pakistan USD 72 mn and Saudi-based Islamic Development Bank (IsDB) inked three framework financing agreements worth USD 180 mn to finance the construction of the dam back in 2022.

#4-The EU is considering integrating emissions removal credits into its carbon market, Reuters reports, citing comments made by the European Commission's EU carbon market unit deputy head Ruben Vermeeren. The move would add carbon removal credits to the existing carbon market or create a separate market for them. The integration is currently under assessment and should be decided by 2026.

Challenges ahead: There is still concern that relying on removal credits might deter actual emission reductions, with the EU maintaining a strict stance on carbon credits since banning international offsets in 2020 due to low environmental standards. The EU's carbon market, a key policy for reducing greenhouse gas emissions, requires power plants and factories to purchase permits for their carbon dioxide emissions.

#5- The US is forming a new trade task force dedicated to reducing carbon emissions from global commerce and manufacturing, Reuters reports, citing comments made by White House senior adviser John Podesta. This initiative is part of a broader effort to expand the use of clean energy technology and domestic manufacturing to counter competition from China. The task force will address issues such as carbon leakage and dumping and will collaborate with international partners to standardize measurements of life cycle emissions. Podesta, who will succeed John Kerry as the US' top climate envoy, emphasized the importance of transparent emissions data for effective climate and trade policy implementation.

#6- Carbon capture, utilization, and storage (CCUS) will likely not play a large role in decarbonizing the steel industry, according to a report (pdf) by the Institute for Energy Economics and Financial Analysis. Despite wide-scale adoption of CCUS by the steel industry, little to no progress has been made on commercial-scale CCUS for the decarbonization of blast furnaces. The technology still faces several challenges including low capture rates, high costs, and a history of underperformance. The adoption of alternative technology is also outpacing CCUS for blast furnace-based steelmaking, with a growing transition towards direct reduced iron (DRI)-based steelmaking fueled by green hydrogen.

On the other hand…: The report acknowledges that despite the skepticism surrounding CCUS, the tech will still have its place given that coal-based blast furnaces will not be completely obsolete, especially in Asia where steel demand is expected to remain high. "I don't agree to the theory that carbon capture will not be effective for the steel industry...the solution to go to net zero has to come from carbon capture and storage," India’s JSW Group Chief Sustainability Officer Prabodha Acharya told Reuters. "The question is when the cost of carbon will cover the cost of capture and utilization."

DANGER ZONE-

#1- Climate change driven factors are set to greatly impact Tunisian agricultural exports until 2050, TAP writes, citing a report by the Tunisian Institute of Competitiveness and Quantitative Studies. The impact will be felt in major exports including olives and dates, which will see an annual production loss of 2.3% and 2% respectively from now till 2050. Total field crop production is expected to fall 0.1% over the same period. Market garden crops will take a hit declining 1.8% overall, with a 0.7% drop in potato production and 0.2% for citrus fruits.

#2-Methane emissions from Germany’s coal mines could be 184 times greater than the figures it reports to the UN, according to a study by energy think tank Ember. Germany mined 131 mn tons of lignite coal from surface mines in 2022, which accounts for 44% of the EUs total lignite coal production, but the country only reported 1.39k tons of active coal mine methane (CMM) emissions. That is just 1% of the bloc’s total reported active surface CMM emissions in 2021.

Germany isn’t the only offender: Indonesia, the world's third-largest coal miner following China and India, underestimates emissions from coal production by six to seven times, whereas Australia underreports methane emissions from coal by 80%.

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CIRCLE YOUR CALENDAR-

The UAE will host the Connecting Green Hydrogen MENA event from Tuesday, 23 April to Thursday, 25 April in Dubai. The event will explore green hydrogen partnerships, policies, and practices in the region, in parallel to a showcasing of the latest in the clean fuel’s technology.

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.

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.