Good morning, folks. It’s a very busy morning with updates coming in hot and fast from across the region, cutting across every corner of our industry. But first, an big story is developing across the pond…

THE BIG CLIMATE STORY OUTSIDE THE REGION- US sets new emissions rules: The Biden administration has finalized a pivotal climate policy to reduce emissions from US power plants. The new rules, set by the Environmental Protection Agency (EPA), impose stricter emission standards on existing coal plants and new natural gas plants, excluding current gas plants. The EPA's strategy also recommends carbon capture and storage technology, despite its high costs and limited deployment. This will be the first time federal emissions standards are enforced on the power sector. The rules mandate a 90% reduction in pollution from coal plants by 2039, with phased cuts beginning in 2032. New gas plants will be subject to these rules starting 2032. The EPA estimates a reduction of 1.38 bn metric tonnes of carbon pollution through 2047, equating to roughly one year's worth of emissions from the US power sector.

The story made headlines in the international press over the weekend:Reuters | AP | The Financial Times | Wall Street Journal | The New York Times | CNN | The Guardian

WATCH THIS SPACE-

#1- Oman completes construction for Manah transmission station: The Oman Electricity Transmission Company concluded the construction of its 400 kV Manah electricity transmission station in preparation to connect the 1 GW Manah solar projects — scheduled for operation in 2025 — to the country’s national grid, Oman News Agency reports. The transmission station — which cost over OMR 11 mn (c. USD 28.6) — was under construction for 20 months, and includes 10 gas breakers with a voltage of 400 kV, 11 kW electrical transformers, and two 750 kV transformers. The lines will also connect the Manah and Nahida power plants and the new Manah and Izki grid stations.

#2- Naturgy takeover getting a push? First Deputy Ruler of Dubai Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum met on Saturday with co-founder and co-chair of private equity firm and Naturgy major shareholder CVC Capital Partners Rolly van Rappard, discussing windows for global financial companies to expand in the region, according to the Dubai Media Office. Officials from Dubai's Department of Economy and Tourism, Dubai International Financial Centre, and Dubai-based real estate firm Tecom also attended the meeting.

REMEMBER- Abu Dhabi National Energy Company (Taqa) is in discussions with Naturgy’s two largest shareholders — CVC and GIP — to potentially acquire their stakes in the Spanish company. Taqa is also discussing “a potential cooperation in relation to Naturgy” withNaturgy’s largest shareholder, Criteria Caixa, it confirmed last week.

Spain is considering its options: The Spanish and Algerian governments could potentially block or otherwise negotiate more preferential terms for Taqa’s potential acquisition in the Spanish gas producer, with Spain’s Sánchez government reportedly looking to “facilitate” Taqa’s takeover bid for 100% of Naturgy, on the condition that Taqa would then sell back 10-15% of the company to the Spanish government.

#3- Jera, Japan’s biggest power producer, plans to invest in low-carbon hydrogen and ammonia plants in the region, Asharq Business reports. Jera is interested in facilities capable of producing around 1 mn annual tons of blue ammonia, alongside smaller scale green hydrogen projects, according to Jera’s Australia and Middle East country head Tsuyoshi Oyama. The region currently houses some of the world's largest planned blue ammonia plants.

Jera has been interested in the region for some time: Jera signed agreements with Taqa and Adnoc last year to investigate the feasibility of low-carbon thermal energy, ammonia, and green hydrogen projects in the region. The Japanese company also collaborated with Saudi Arabia’s sovereign wealth fund the Public Investment Fund (PIF), to explore the production of green hydrogen and its derivatives.

#4- A green finance fund for the Arab world? The UN Development Programme (UNDP) and the Islamic Development Bank (IsDB) are in talks to set up a fund focused on green finance in the Arab world, Assistant UN Secretary General Abdallah Al Dardari told Aleqtisadiah on Saturday on the sidelines of the IsDB’s annual meeting in Riyadh. He did not provide further details on the planned fund. Al Dardari, who also serves as director of the UNDP’s regional bureau for Arab states, said failure to address climate change globally would require some USD 34 trn to address damages.

IsDB has approved USD 418 mn in financing for sustainable development projects in Central Asia, Africa and Turkey, it said in a post on X. Tajikistan will get USD 160 mn for clean energy, while Turkey is set to secure USD 120 mn in funding for infrastructure development. Some USD 70.5 mn in funds will be channeled to support Cote d’Ivoire’s agricultural transformation, while Benin will get USD 60.6 mn to boost food security.

#5-The UAE is exploring the construction of a second nuclear power plant, Reuters reported on Friday, citing sources with knowledge of the matter. The country aims to tender and award four reactors this year — potentially within the next few months — and the plant will reportedly start operations by 2032, sources told the newswire.

Who can bid? Tenders will be open to any potential bidders, including US, Chinese, and Russian firms, the sources said, adding that South Korea — which built the Barakah plant — will not be favored. The Federal Authority for Nuclear Regulation told Reuters it is set to review and hand out the necessary licenses and regulations if the government gives the green light for new plant construction.

Its predecessor: The move comes as the 1.4 GW fourth unit of Emirates Nuclear Energy Corporation’s South Korean-built Barakah nuclear energy plant was connected to the UAE’s transmission grid last month. Once it begins full commercial operations later this year, the plant is expected to offset 22.4 mn tonnes of emissions with 40 TWh of generated electricity annually.

#6- We have a figure for AFC’s investment in Xlinks Morocco-UK interconnector project: Infrastructure provider and developer Africa Finance Corporation (AFC) will invest USD 14.1 mn in the Xlinks Morocco-UK interconnector project, according to a statement published on Thursday. AFC has now joined France’s TotalEnergies, General Electric, and Abu Dhabi’s Taqa in backing the 3.8k km interconnection project linking Morocco with the UK. UK-based investment company Xlinks recently updated guidance on construction costs and the strike price for the project which will now cost an estimated GBP 22-24 bn (USD 27-30 bn).

#7- Jordan to issue new renewable energy infrastructure law: Jordan is set to introduce a revised renewable energy law aimed at supporting the building of renewables infrastructure for green hydrogen and ammonia production, Zawya Projects reported last week, citing a report in Jordanian news outlet Alghad. The updated legislation — which has already received the cabinet’s initial endorsement — is yet to be approved by Parliament. Jordan wants to source 50% of its electricity demands from renewables by 2030 — up from the current 29% — and plans to leverage modern energy storage systems, smart meters, and improve power transmission infrastructure to facilitate energy transfer with its neighbors.

Renewable infrastructure is crucial for Jordan’s big green hydrogen dreams: The move comes after the country signed agreements with international companies to establish green hydrogen and ammonia plants, including a significant USD 1.5 bn facility in the Southern Jordanian port of Aqaba. The project — developed by a JV between Poland-based Hynfra and Jordan-based Fidelity Group — is expected to generate between 100-200k tons annually, powered by 530 MW capacity from solar. The JV is looking to export surplus from the planned facility to EU markets.

The country is on a legislation roll: Jordan’s cabinet has approved a draft law to establish frameworks to facilitate the power purchase of renewable power generated by households and businesses in February. Jordan is said to be “finalizing” its national green hydrogen strategy, which would set in motion 13 recently signed green hydrogen and ammonia MoUs paving the way for the kingdom to realize its goal of becoming a global hub for green hydrogen exports.

#8- G7 to push for new global storage goal: The G7 nations are poised to set a global target to boost electricity storage capacity six fold to reach 1.5k GW by 2030, The Financial Times reported on Friday, citing a draft document it has seen. The proposed expansion includes storage solutions like batteries, hydrogen, and water. The International Energy Agency (IEA) says batteries will play a critical role, and are expected to constitute 90% of new energy storage, a trend that has already kickstarted driven by a 90% cost reduction over the past 15 years, FT adds. The G7 aims to boost the development and deployment of stationary battery storage to enhance efficiency and reduce costs while ensuring a secure supply chain.

LIVE FROM RIYADH-

The World Economic Forum special meeting kicked off in Riyadh yesterday and will wrap today. Climate, energy, finance, and artificial intelligence are dominating the conversation — but peace and security are also getting plenty of attention as regional tensions and the Israel-Gaza conflict will take top billing at this week’s World Economic Forum special meeting in Riyadh.

Some 200 heads of state and government as well as public figures and over 1k industry leaders are in Saudi’s capital city for a gathering headlined Global Collaboration, Growth, and Energy for Development.

Here’s what went down the first day:

The world will likely need “every source of energy,” Saudi Energy Minister Prince Abdulaziz bin Salman said in a separate panel, reiterating the Kingdom’s openness to alternate sources of energy so long as their provision is economically viable. “We have no objection to partnering with everyone; we are ready to transport these particles, especially hydrogen in the form of ammonia through pipelines, but we face challenges, including the clarity of policies and incentives,” he said.

REMEMBER-The Kingdom’s policy was (and remains) consistent: “Fossil fuels will be with us for many, many decades to come,” Saudi climate envoy Adel Al Jubeir said during COP28 in Dubai last year. His statements came amid criticism of Saudi’s rejection of a phase-out of hydrocarbons. Al Jubeir reiterated the Saud continues to invest heavily in green projects, strategically directing investments totaling USD 186 bn into more than 80 projects and counting.

The Kingdom will continue to source lithium from abroad as part of its plans for the nascent EV sector as securing domestic supplies were still at an early stage, Industry and Mineral Resources Minister Bandar Al Khorayef told Reuters. "Lithium is a very important mineral that happens to be part of a very important part of the supply chain, especially for batteries," he said. "There are some signs which are encouraging, but we need to do more," he said on sourcing lithium locally. "For something to be economically feasible there are two things we need to look at: the size of deposits and concentration. We do not have enough evidence to say that we have the right size of deposits and concentration." Al Khorayef said.

The Kingdom’s mineral sector is aiming for the sky: Manara, a JV between PIF and mining giant Ma’aden, is eying a stake in Zambia's First Quantum Minerals copper mines Sentinel and Kansanshi, and is also about to close a USD 1 bn investment in Barrick Gold’s Reko Diq copper and gold mining project in Pakistan. Meanwhile, Aramco is reportedly planning to extract lithium from brine found in its oilfields.

KSA’s Energy Ministry and the EU are set to finalize a MoU on energy “in the next few months,” a statement by the Saudi Energy Ministry and the European Commission read (here and here). The announcement was made during a meeting between Energy Minister Prince Abdelaziz bin Salman and European Commissioner for Energy Kadri Simson. The pact will focus on accelerating private investment in the energy transition, including hydrogen, carbon capture, utilization and storage, electricity interconnection and others.

On the agenda today:

• Saudi Investment Minister Khalid Al Falih will join BlackRock chief Larry Fink and Olayan Group’s Lubna Olaya to talk about “investing amid global fracture”;
• The energy ministers of Tanzania and Indonesia along with Aramco CEO Amin Nasser, Nuveen CEO Jose Minaya and the chairman of Schneider Electric will chew over the tradeoffs of the “business case for the energy transition.”

Watch public sessions live here or check out the full agenda here.

COP WATCH-

“Developing nations would need USD 2 tn annually [to fight global warming], with half of that coming from foreign sources,” Germany’s foreign affairs minister Annalena Baerbock said at the two-day Petersberg Climate Dialogue in Berlin which concluded Friday, Bloomberg reported on Thursday. The two-day dialogue — which took place behind closed doors between representatives of over 40 countries — aimed to lay the groundwork for what discussions will be taking place at COP29 later this year when Azerbaijan hosts the summit. This year’s dialogue focused on how to ensure COP29’s agenda will be centered around increasing funds to poorer nations who are impacted the most by climate change despite contributing the least to the crisis.

Fingers are already pointing: During the dialogue, COP29’s incoming Azerbaijani president Mukhtar Babayev criticized the World Bank and the International Monetary Fund for not stepping up with more support at their spring meetings held earlier this month, Bloomberg added. This comes as donor nations have expressed that their public money will not be enough — amidst slow growth and high inflation squeezing government budgets — placing the burden on multilateral development banks to provide concessional financing.

While Baerbock looks at China and the Gulf to play a bigger role: “I strongly urge those who can to join our effort, and particularly the strongest polluters of today, particularly looking at the G20,” Baerbock said in her opening speech at the conference, while singling out the Gulf and China as “big emitters” that “need to do more,” Reuters reported on Thursday. The two-dozen nations obliged by UN agreements to contribute to the global climate financing target are made up of countries that were industrialized decades ago, and therefore excludes the world's top developing country polluters, the news outlet explains.

Azerbaijan is not willing to compromise on fossil fuels: “As the head of the country which is rich with fossil fuels, of course, we will defend the right of these countries to continue investments and to continue production because the world needs it,” Azerbaijan's President Ilham Aliyev said at the closing day of the climate conference, according to Reuters. Aliyev added that his country is planning to raise its natural gas exports to Europe to 20 bn cbm by 2027, citing the EU’s geopolitical situation — with regards to looking to diversify its energy sources away from Russia — as the reason for the agreed increase.

Germany is working on debt-for-swap frameworks: “In the future, vulnerable middle-income countries that are willing to reform could also be eligible for a climate debt conversion program,” Reuters reported on Friday, citing a speech made by German Chancellor Olaf Scholz at the closing of the dialogue. The European nation is working on changing its bilateral debt relief framework to enable middle-income countries to gain from climate investment, the news outlet explains.

COP28 President Sultan Al Jaber urged governments to “think bigger” and “act bolder” on national climate plans, according to a statement published on Friday. The former COP president delegate and current minister of Industry and Advanced Technology reiterated his call for countries to submit their new round of national climate plans — with a submission deadline set for 2025 —, which he said need to be followed up by the needed investments in order to seize the biggest capacity for socio-economic development since the first industrial revolution, the National reported. During the conference, the COP28 Presidency co-hosted the Troika assembly alongside COP29 and COP30 hosts, the first in a series to be hosted ahead of this year’s COP.

Egypt also had a big presence at the conference: Egypt’s Environment Minister Yasmine Fouad co-chaired a session with Baerbock on the current global climate financing system, discussing how to reach a new collective global goal for climate financing during the upcoming COP29 climate conference, according to a statement on Sunday. The ministerial session included 3 consecutive dialogue sessions between developed and developing countries. Fouad also held a bilateral meeting with Germany’s Minister of State and Special Envoy for International Climate Action at the German Foreign Ministry Jennifer Morgan, where she emphasized the importance of making climate adaptation financing available for developing countries, a statement said on Friday.

IN OTHER COP NEWS-The Loss and Damage Fund’s board members are meeting for the first time in Abu Dhabi, according to a statement published on Sunday. The official meetings will start tomorrow and run through to Thursday, after being postponed since January. The Loss and Damage Fund’s board is mandated to have 26 members, comprising 12 from developed countries, three each from Asia-Pacific, Africa, Latin American and the Caribbean, two each from small island states and least developed countries, and one from another developing nation not in these categories. Egypt, Saudi Arabia, and the UAE have representatives on the board.

ATTENTION, EGYPT INVESTORS-

Foreign investors are falling in love with Egypt again… Foreign investors we speak with (debt, equity, and strategic alike) have a growing appetite for Egypt. They’re buying into local debt, eyeing promising shares, and committing bns of USD to both new ventures here and the growth of their existing businesses. They like the Egypt story that’s taking shape after the float of the EGP, and its competitive advantages are clear to many of them: It’s a massive consumer opportunity and a regional export hub of tomorrow.

The Enterprise Optimism Forum 2024 will do exactly what it says on the tin: Spark conversations about a future that we think is much brighter than so many in our community feel right now. Think of it as much-needed shock therapy combined with an early, actionable roadmap for those of us who are “long Egypt.”

We’ll be talking with you about the agenda over the coming couple of weeks. It features speakers from Egypt and abroad who are future-proofing their businesses and angling to capture tomorrow’s opportunities — and who aren’t afraid to answer some tough questions.

*** Interested in attending? Tap or click here to let us know. Seating is limited.

***
YOU’RE READING ENTERPRISE 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.

EXPLORE MORE OF ENTERPRISE ON THE WEB —tap or click here to read EnterpriseAM, EnterprisePM, Enterprise Climate, Enterprise Logistics, and The Weekend Edition on our powerful new website packed with reader-friendly features.

Were you forwarded this email? Get your own subscription without charge here or reach out to us on climate@enterprisemea.com with comments, suggestions and story tips.
***

CIRCLE YOUR CALENDAR-

Oman will host the Oman Sustainability Week from Sunday, 28 April to Thursday, 2 May in Muscat. The event will focus on exploring investments and implementing best practices in sustainability within the energy, water, and environmental sectors.

Italy will host the G7 Ministerial Meeting on Climate, Energy and Environment from Sunday, 28 April to Tuesday, 30 April in Piemonte. The meeting will focus on pressing climate, environment, and energy challenges.

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 investments 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.