Good morning, folks. It’s a busy morning with news piling in from Saudi, the UAE, Morocco and Tunisia across all subsectors of the climate industry. First, more hurricane news from the US as climate change shows no mercy on the weather patterns …

THE BIG CLIMATE STORY OUTSIDE THE REGION- Hurricane Helene leaves widespread destruction behind: Clean-up has begun after the Category 4 Hurricane Helene swept throughout the Southeast US after making landfall on Thursday, causing at least 100 fatalities and leaving over 2.68 mn people without power. The storm has since downgraded to a post-tropical cyclone as it continues inland from the Appalachians to the Tennessee Valley. Helene is the third hurricane in the past 13 months to hit the Big Bend region in Florida.

Hurricanes are becoming more intense thanks to climate change. Forecasters have consistently warned of the role of climate change in making storms like Helene more powerful. While there is no evidence that climate change is increasing the frequency of hurricanes, researchers have shown that it makes it more likely we’ll see storms with stronger winds and heavier rainfall. Part of the reason is that record sea surface temperatures – which strengthen tropical storms – are becoming more common.

The story made headlines in the international press: Reuters | AP | Bloomberg | Financial Times | The New York Times | BBC | CNN | NBC

HAPPENING THIS WEEK-

#1- Cairo Sustainable Energy Week will kick off on Tuesday and run through to Thursday in Cairo. The event will bring together policymakers, companies, and experts to discuss collaboration on the renewable energy transition across 17 Arab countries.

#2- The World Green Economy Summit will open its doors on Wednesday in Dubai and will conclude the following day. 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.

#3- The European Union is set to vote on imposing tariffs as high as 45% on EVs imported from China on Friday, Bloomberg reported on Saturday. The vote is expected to proceed despite last-minute negotiations with Beijing to avoid these levies. If approved, the new tariffs would be implemented from November and last for five years, unless opposed by a qualified majority of EU member states.

Not everyone’s on board: China has denied any unfair practices and threatened retaliatory tariffs on European products, including dairy, brandy, pork, and large-engine cars. Some EU member states, such as Germany and Spain, have expressed concerns that the tariffs could trigger a trade war, given China is Europe’s second-largest trading partner. Negotiations between the EU and China are ongoing, with discussions focusing on finding a political solution to avoid a tariff war.

WATCH THIS SPACE-

#1- Masdar’s Iberian acquisition spree isn’t over: UAE renewables giant Masdar is “very keen on the Spanish market” and is looking to expand through current and new partnerships after finalizing two major transactions in recent months, a Masdar executive told Reuters on Friday. Masdar and other Gulf investors have been turning to the sector that is struggling with high interest rates and debt costs pushing local energy giants to sell minority stakes in their projects. The company is open to forming new partnerships, but intends to be “very selective” in its approach. Acquisitions and partnerships in Europe are poised to be a crucial part of the company’s plan to reach its 100 GW target capacity by 2030.

ICYMI- Masdar acquired Spanish renewable energy firm Saeta Yield from Brookfield Renewable, an affiliate of Canada-based investment firm Brookfield for USD 1.4 bn earlier this month and acquired a 50% stake in Spanish power firm Endesa’s solar power installations subsidiary EPGE Solar for AED 3.3 bn (c. EUR 818 mn) back in July. The energy giant is now in talks with Endesa to develop up to 5 GW of capacity on top of the July agreement and expects the Saeta pipeline to connect to the grid by 2030.

#2- The UAE plans to release its new national climate action plan for 2025-2035 under the Paris Agreement before the COP29 climate summit in November, Reuters reported on Thursday, citing comments made by COP28 president Sultan Al Jaber as saying. The move would make the Emirates the first major emitter to release its plan ahead of the February 2025 deadline, as it looks to encourage other countries to update their nationally determined contributions (NDCs).

#3- Japanese firms to support green energy projects in Egypt: The Japan Bank forInternational Cooperation (JBIC) unveiled its plans to finance green energy projects locally — whether through direct investment or in partnership with regional investment institutions, according to a General Authority for Investment and Freezones (GAFI) readout of a meeting between GAFI head Hossam Heiba and 24 Japanese renewable energy companies held last Thursday.

What to watch out for: JBIC Middle East representative Kenichiro Kitamura noted that the bank plans to finance green hydrogen and green ammonia projects, while Japanese firm Sojitz Egypt expressed its interest in investing in infrastructure related to the renewables sector, “in preparation for receiving significant flows of Japanese investments in this sector.”

In related news: The US International Development Finance Corporation (DFC) is interested in offering technical support and financial services to companies planning green fuel projects in the Suez Canal Economic Zone, according to a statement.

#4- EU changes hydrogen grant rules to curb Chinese dependence: The EU has made adjustments to its hydrogen auction rules to favor domestic companies and try to limit dependence on Chinese renewables and electric vehicles, Reuters reported on Friday. The EU Hydrogen Bank’s second renewable hydrogen auction on 3 December will extend up to EUR 1.2 bn in grants to new EU projects, but the projects can’t have “parts sourced from China exceeding 25% of the plant's production capacity.”

Heeding the central bank’s warnings: Europe is at risk of economic decline if it doesn’t improve its industrial policy and accelerate implementation and investment to keep up with the US and China, Former head of the European Central Bank Mario Draghi said in a report (pdf) for the European Commission. The new hydrogen rules align with Draghi’s report which recommended targeting sectors the bloc still has a competitive advantage in rather than already Chinese dominated sectors like solar.

#5- Ecuador’s debt-for-nature swap is under investigation: The Inter-American Development Bank’s oversight body, the Independent Consultation and Investigation Mechanism (MICI), is investigating a record USD 1.6 bn "debt-for-nature" swap by Ecuador for the Galapagos Islands following complaints from local groups about transparency, Reuters reported on Saturday. 24 groups filed a complaint citing a "lack of accessible and relevant information" and "lack of an engagement strategy with potentially impacted communities" after conservation money failed to materialize since the agreement was inked in 2023. Dubbed the “holy grail for eco-finance experts,” the agreement was to see USD 1.1 bn of the country’s debt partially forgiven in exchange for conserving its Galapagos Island.

What happens now? MICI's investigation will determine if there were breaches of the IDB's environmental and social policies, with potential corrective actions to follow. The investigation process, which could take up to a year, will not prevent the disbursement of funds from the debt swap.

#6- EU renewables push must be paired with battery expansion: The wind and solar energy sectors in Germany and the greater EU are growing quickly and the battery storage market will have to do the same to make the most of generation peaks, Reuters reported on Thursday, citing a report (pdf) by energy think tank Ember. Energy fluctuations also mean that consumers have to pay for curtailments and backup supply, but added storage capacity would make investment in green energy more feasible by increasing reliability to avoid the need for extra costs.

China is well aware of the benefits of storage: China’s green sector is growing rapidly with 1.2 TW of wind and solar capacity, but battery storage is lagging behind at just 44 GW, Bloomberg reported on Thursday. The country hopes to reach 2.7 TW of renewables and over 300 GW of storage capacity by 2030, former chairman of utility giant State Power Investment Corp Qian Zhimin said ahead of a battery exhibition in Shanghai. Manufacturers are having to sell at a loss due to overcapacity which will most likely lead to a necessary restructuring in the sector, president of the China Electric Power Construction Association Wang Siqiang expects.

REMEMBER- Energy storage expansion is on the COP29 agenda: Azerbaijan wants to pitch a Global Green Energy Storage Pledge to over 190 countries at this year’s COP summit, aiming to increase global energy-storage capacity sixfold by 2030. Countries around the world would need to boost their energy storage capacities by 158 GW annually through to 2030 in order to reach the proposed target.

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CIRCLE YOUR CALENDAR-

The UAE will host the first EU-GCC Green Transition Forum on Wednesday, 9 October in Abu Dhabi. The forum will gather industry leaders, policymakers, and experts to explore netzero emission strategies and host discussions on sustainability across the region. Interested parties can register here.

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.