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Taqa is exploring acquiring stakes in a EUR 1.9 bn Greece-Cyprus interconnection project

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WHAT WE’RE TRACKING TODAY

TODAY: Taqa is exploring acquiring stakes in Greece-Cyprus interconnection project + Acwa inks a major PPA in South Africa

Good morning, nice people. We have a quick roundup today of all the latest happening in the region with a couple of large stories emerging from the UAE and KSA.

THE BIG CLIMATE STORY- The Abu Dhabi National Energy Company (Taqa) has signed an MoU to explore the acquisition of a stake in the 900 km high-voltage direct current (HVDC) interconnector project between Greece and Cyprus.

^^ We have the details on this story and more in the news well, below.

THE BIG CLIMATE STORY OUTSIDE THE REGION- The UK will set import carbon taxes starting 2027: In efforts to safeguard local businesses against cheaper imports from markets with lax climate action strategies, the UK government plans to enforce its planned carbon border adjustment mechanism (CBAM) on imported goods including iron, steel, fertilizers, hydrogen, ceramics, and cement staring 2027.

The details: The carbon levies will depend on the amount of carbon generated in the production of the imported goods, and the difference (if any) between the carbon price applicable in the country of origin and the carbon price faced by UK manufacturers. “This levy will make sure carbon intensive products from overseas — like steel and ceramics — face a comparable carbon price to those produced in the UK, so that our decarbonisation efforts translate into reductions in global emissions,” the country’s Finance Minister Jeremy Hunt notes in the statement.

The story made headlines in the international press:The Washington Post | ReutersEuronews | The Guardian | Bloomberg | AP News | The Financial Times | ABC News


WATCH THIS SPACE #1- It’s confirmed, OCI is selling its stakes in Iowa Fertilizer: The Sawiris-backed, Netherlands-headquartered chemicals company OCI Global will sell 100% of its USD 3.6 bn stake in the US crop nutrient unit Iowa Fertilizers to US’ Koch Ag & Energy Solutions, OCI said in a statement. The sale will be completed in 2024 pending US antitrust approval. OCI is planning to use the funds to explore investment options in the energy transition sector, while reducing the holding company's net debt and providing shareholders with high capital returns.

REMEMBER- A busy week for OCI: OCI also signed a binding agreement with Adnoc last week to offload a 50% stake in their joint venture Fertiglobe for AED 13.28 bn.


WATCH THIS SPACE #2- New capital requirements on Wall Street will rock the green finance boat: Basel 3 Endgame — the final stage of regulations imposed in the US after the 2008 financial crisis — is expected to significantly affect Wall Street’s biggest banks’ ability to finance green projects, Bloomberg wrote. The regulations will increase capital requirements for banks, making it more expensive for banks to provide funds, including funding to green projects. The new rules will “fundamentally alter” how banks in the world’s biggest economy approach risk, Ernst & Young told the business newswire.

The US’ biggest banks aren’t happy: JP Morgan alleges that the new rules would “for sure” affect its green projects financing, while Goldman Sachs CEO David Solomon warned that the new regulations would push the capital requirements for some of its green energy products to “quadruple.” Citigroup Vice Chairman of Banking, Capital Markets and Advisory Jay Collins also chimed in on the topic in an interview cited by Bloomberg, claiming that “as long as there is so much policy noise and regulatory fog, the multifold increase in climate investment won’t happen.”

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CIRCLE YOUR CALENDAR-

Qatar will host The International Conference on Smart Grid and Renewable Energy is kicking off Tuesday, 9 January through to Friday, 12 January in Doha. The conference will explore the importance of the smart grid and renewable energy resources and the viability of various related technologies. It will also host discussions on power electronics, controls, manufacturing, communications and computational intelligence.

Saudi Arabia will host the Future Minerals Forum from Tuesday, 9 January through to Thursday, 11 January in Riyadh. The event will bring nations and private sectors together to enable the creation of resilient mineral value chains in the resource rich regions of Africa, Western Asia, and Central Asia. The forum will hold a ministerial roundtable with over 60 countries being represented., and delegates will discuss global critical mineral strategies as well as an international exhibition with over 150 exhibitors and industry sponsors.

The UAE will host the Management and Sustainability of Water Resources Conference from Monday, 26 February to Wednesday 28 February in Dubai.The conference is set to address the importance of water resources availability in arid and semiarid regions and to discuss global water issues and address future water and environmental challenges.

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

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RENEWABLES

Acwa Power inks PPA for South Africa’s largest dispatchable clean energy project

Acwa Power secures PPA for South African renewables: KSA renewables giant Acwa Power signed a power purchase agreement with South Africa’s Mineral Resources and Energy Ministry and state power company Eskom to offtake energy from a planned 150 MW dispatchable renewables plant, according to a statement. The project is part of Acwa’s USD 800 mn, 442 MW DAO solar energy complex in the country’s Northern Cape Province.

SOUND SMART- Dispatchable power plants are energy facilities that can alter how much power they provide to the electricity grid on short notice. They can be switched on and off or ramped up and down to meet power demand.

About the project: The 442 MW solar farm — which is expected to come online by 2Q 2026 — is currently under construction and will be accompanied with a 1.2 GWh capacity battery energy storage system, the statement notes. The project is co-owned by Acwa Power, Thebe DAO and Trisort Investments, with each holding a 33.3% stake, Power Technology notes.

Not Acwa’s first entry into South Africa: Acwa kicked off on construction on its ZAR 11.6 bn (c. USD 622.7 mn) 100 MW concentrated solar power Redstone plant in the African country back in 2021, which at the time was the country’s largest. The project was set to come online by Q4 2023. The company also helped develop the USD 517 mn, 50 MW Bokpoort CSP greenfield Independent Power Project (IPP) to support advancement of South Africa’s renewable IPP program.

Other regional players are also tapping the country’s clean energy market: The South African government tapped the UAE’s Amea Power for development of the USD 120 mn, 120 MW Doornhoek solar energy plant last year. Once operational, the project is expected to generate over 325 GWh of clean energy, offsetting 290k tons of CO2 emissions annually.

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M&A WATCH

Taqa is exploring acquiring stakes in a EUR 1.9 bn Greece-Cyprus interconnection project

Taqa eyes stake in Greece-Cyprus interconnection project: The Abu Dhabi National Energy Company (Taqa) has signed an MoU to explore the acquisition of a stake in the 900 km high-voltage direct current (HVDC) interconnector project between Greece and Cyprus, according to a statement. If the agreement goes through, Taqa will join Greece's Independent Power Transmission Operation (IPTO) and the Cyprus Government as shareholders of the interconnector project, which has a total estimated cost of EUR 1.9 bn.

This came as no surprise: Taqa revised its growth targets last month and committed AED 75 bn to infrastructure investments as it aims for 150 GW power generation by 2030.

More HVDC ventures for Taqa: Taqa signed an MoU with the Romanian Power Grid Company Transelectrica, Meridiam, E-INFRA, and Fluor to carry out a feasibility study for a HVDC infrastructure project in Romania and invested GBP 25 mn in UK-based renewables developer Xlinks in April for a 3.8k km HVDC subsea interconnector to transport 3.6 GW of renewable energy from Morocco to the UK.

Interconnecters set the stage for Taqa’s renewables targets: “HVDC projects are vital to connect clean energy projects to the end users, and we are ambitiously accelerating investment and growth in our infrastructure business to help our stakeholders scale up their clean energy to meet the growing demand for secure, reliable and sustainable power,” said Taqa group CEO Jasim Husain Thabet.

ELSEWHERE IN THE REGION- The first phase of the Egypt-Saudi interconnection project will be completed within weeks, Youm7 reports, citing an unnamed source at the Electricity and Renewable Energy Ministry. The project is set to be connected to the Badr transformer station by May 2025. The 3 GW project is part of Egypt's plan to become a major exporter of renewable energy.

REMEMBER- There are other regional interconnectors in progress, and some aim to link to Europe: In July, Egyptian authorities were in talks with the Greek government about how to fund the planned EUR 4 bn 3-GW Egypt-Greece Interconnector (GREGY), a source from Egypt’s Electricity Ministry told Enterprise at the time. Saudi Arabia is also establishing its own 1 GW electrical interconnection project with Iraq, and Morocco is looking to lay a 3.8k km HVDC subsea cable to eventually transport 3.6 GW of renewable energy to the UK. Tunisia is also working on a planned electrical interconnection project with Italy.

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INVESTMENT WATCH

UAE’s Positive Zero is getting USD 400 mn from BlackRock for decarbonization efforts

BlackRock will invest USD 400 mn in UAE's Positive Zero:New York-based investment company BlackRock is investing USD 400 mn in UAE-based decarbonization company Positive Zero through a diversified infrastructure fund, according to a statement. The investment will allow Positive Zero to grow its sustainable energy adoption and offer fully financed sustainable energy solutions across the GCC for commercial, industrial, and public sector organizations.

About Positive Zero: Positive Zero is a decentralized decarbonization infrastructure platform born out of a merger between solar company SirajPower, energy efficiency firm Taka Solutions, and on-demand battery company HYPR Energy. In its decarbonization efforts, Positive Zero also focuses on decentralized power generation, resource efficiency, and clean mobility. The platform also operates in Saudi Arabia and has plans to expand further across the MENA region.

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GREEN MANUFACTURING

UAE’s Kings Aluminum breaks ground on an aluminum production and recycling plant

A green aluminum plant comes to KEZAD: Abu Dhabi-headquartered Kings Aluminium Industries kicked off construction yesterday on its AED 750 mn (c.USD 204.2 mn) aluminum production and recycling facility at AD Ports’ Khalifa Economic Zones in Abu Dhabi, Wam reports. A timeline on the project’s operational launch date was not provided.

The details: The aluminum smelting and repurposing plant, which will be established on KEZAD’s Hot Metal Road, will span 100k sq meters and will be leased for 50 years by KEZAD Group. The facility — which will source raw materials from KEZAD Group anchor Emirates Global Aluminum — aims to convert virgin aluminum and aluminum waste into high-quality reusable metal products in a bid to push down the carbon footprint of the steel industry and promote aluminum circularity, the news agency notes. Kings Aluminum says it will process aluminum metal and billets and reuse a variety of aluminum waste to realize its targets, according to Wam.

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GREEN TECH

Moroccan startup Atarec unleashes wave energy potential

Morocco's Atarec harnesses wave energy potential: Moroccan start-up Advanced Third Age Renewable Energies Company (Atarec) has developed novel wave energy tech that generates electricity from the sea waves at port breakwaters and other maritime infrastructures, according to its website. Atarec deployed a 7 kW advanced demonstrator of its wave energy tech — dubbed Wave Beat — at the Tanger-Med Port, Atarec founders Mohamed Taha El Ouaryachi and Oussama Nour told Offshore Energy in an interview. This followed the successful prototypes deployed in 2020 and 2021 as well.

About the tech: Wavebeat captures the vertical variations in sea level using a freefloatingbuoy, turning the natural motion of water into sustainable and renewable energy, Ouaryachi added in the interview with Offshore Energy. The device is connected to a generator that converts the mechanical energy of the buoy into electrical energy. The device is designed to be cost-competitive and well-suited for port environments given the high wave energy potential is high and easy grid connection. The tech also offsets 1.6k tons of CO2 annually and is 3 times more continuous than solar energy.

Why does it matter? The marine energy sector can cover all of humanity's energy needs of 20k to 90k TWh/year compared to a global electricity consumption of around 16k TWh/year, according to a report (pdf) by the International Energy Agency. Ocean energy could also hold a global market potential of 350 GW by 2050. The tech has proven to be energy efficient in the trials at Tanger Med as it exceeded the offshore wind capacity of 60%, while having one of the most competitive Levelized Cost of Energy amongst globally wave energy providers as a result of its amplification system and the advantages of operating as an onshore tech while being offshore.

The challenges: Funding and the lack of private-public partnerships are the startup’s biggest challenges. Having already raised EUR 900k in equity, grants and non-dilutive money, Atarec is currently “working on many programs in order to get more funding and accelerate the development of WaveBeat as soon as possible, in parallel with the launch of our next fundraising campaign,” added El Ouaryachi. They also aim to form more public-private sector partnerships to address funding issues.

What’s next? Atarec signed agreementsto set up wave energy projects in five countries, including its pilot project in Tanger Med — the first wave exploitation project in Africa — with a total projected power of up to 110 MW, according to their website. The company is also targeting other sections of the market. “We do envision the possibility of developing utility-scale devices for other facilities such as desalination, offshore platforms, artificial Islands, and tourism facilities,” El Ouaryachi said.

The region is already harnessing the ocean’s potential: Oman’s Transport Ministry and a consortium of companies inked an agreement back in March to extend feasibility studies for tidal power at the Masirah sea bridge, with the results expected by the end of the year to guide the investment decision.

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ALSO ON OUR RADAR

Evolve secures environmental approval to access alternative fuels and Aldar forms a waste management JV with Tadweer and friends

!_ImageURLWeb_! https://ent.news/2023/12/1217.jpeg

DECARBONIZATION-

Egypt’s Evolve becomes first to receive environmental approval to access alternative fuels: TheArabian Cement Company ’s (ACC) alternative fuels subsidiary Evolve Investments & Projects Management has received an approval to access a diverse range of alternative fuel suppliers and materials from the Egyptian Environmental Affairs Agency (EEAA) and the Waste Management and Regulatory Authority (WMRA), according to a statement. Approved under Egypts Law 202 for waste management, Evolve and ACC will be positioned “to collaboratively engage with a broader spectrum of alternative fuel suppliers,” CEO of ACC Sergio Alcantarilla said.

ACC cements its position as a leader in sustainability: The ACC received funding from the European Bank for Reconstruction and Development (EBRD) and UAE-based consulting firm A³&Co to develop a decarbonization roadmap, back in November. The roadmap will pave the way for the cement company to produce low-carbon cement and reduce costs. The cement company has already been decarbonizing its operations, as it signed an agreement last year for a 13.2 MW second phase of its solar plant in Suez, which, along with phase 1, aims to generate 10% of its operational energy needs.

WASTE MANAGEMENT-

UAE’s Aldar launches initiative to eliminate landfill and food waste: UAE real estate developer Aldar Properties PJSC has formed a joint venture with the Abu Dhabi Waste Management Company (Tadweer), National Food Loss and Waste Initiative Ne'ma, and Greece-based circular economy solutions company Polygreen to launch Ecoloop, the region’s first circular model waste removal system, according to a statement. Waste from Aldar’s properties will be collected, separated across four transfer stations, and converted into new resources.

The details: Ecoloop is set to eliminate 32.5k tons of CO2 emissions annually by preventing approximately 70k tons of municipal solid waste from Aldar properties from ending up in landfills. The initiative relies on Polygreen’s Just Go Zero waste management model, which brings businesses, local governments, and communities together to work towards a zero-waste world. Tadweer will handle waste management services, while Ne'ma will champion the Zero Food Waste to Landfill framework and promote responsible and sustainable consumption in communities.

Tadweer + Polygreen have history: Tadweer signed in May an agreement with the company to jointly upscale waste management capacity in the UAE and Greece utilizing its Just Go Zero model.

ENERGY STORAGE-

Schneider Electric + Volts to build energy storage plant in UAE: Schneider Electric signed an MoU with the UAE's energy storage system manufacturer Volts to establish a battery energy storage systems (BESS) industrial facility in Abu Dhabi, Wam reports. The two companies will explore producing industrial and household energy storage systems and battery cells.

BESS in the region: Infinity Power signed an agreement last month with Senegalese national utility Senelec for a 40 MW BESS system. The Emirates Water and Electricity Company also issued tenders in September for a BESS project. Petroleum Development Oman is also looking to establish a 100 MW solar energy plant with plans to have it complemented by the country’s first battery energy storage system.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

  • Kuwait gets into the SAF game: The Kuwait Petroleum Company’s marketing arm Q8Aviation completed its first blending trial for sustainable aviation fuel (SAF) at a biorefinery in France’s Le Havre last Friday. The e-fuels were blended in compliance with the EU’s ISCC Standards and will be delivered to the Charles de Gaulle and Paris-Orly airports. (Kuna)
  • KSA’s EVIQ launches EV charging platform: Saudi Arabia’s Electric Vehicle Infrastructure Company (EVIQ) — backed by KSA’s sovereign wealth fund PIF and the Saudi Electricity Company — launched the kingdom’s first testing and software center for EVs in Saudi Arabia. EVIQ has set a target to install over 5k fast chargers across 1k locations in KSA. (Saudi Press Agency).
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AROUND THE WORLD

The IFC will invest USD 50 mn in Africa and Asia’s green energy + transport infrastructure

The IFC partners with AP Moller on climate finance: The International Finance Corporation (IFC) is investing USD 50 mn in Danish shipping company AP Moller’s Emerging Markets Infrastructure Fund II, according to a statement released earlier this week. The loan aims to help AP Moller tackle infrastructure gaps, facilitate trade, and boost access to renewable energy in Asia and Africa. The Danish fund aims to raise USD 1 bn in green financing.

Where’s the money going: 60% of the USD 1 bn funding package is planned for onshore transport projects spanning from ports and storage, roads and rail, to warehouses and distribution ventures, while the remaining 40% of the financing strategy will be set aside for renewable energy and electricity distribution projects. Half of the fund is packaged towards development projects in Africa, with the remainder earmarked for the South and South East Asian Markets.

Why the focus on greenifying transport and port operations? The IFC notes the global shipping sector contributed to around 25% of global energy-related greenhouse gas output in 2022, the IFC notes. In our neck of the woods, a US-backed plan to establish an economic corridor linking Europe with the Middle East and India via a green rail and sea corridors is in the works. Regional players including KSA are separately running trials for hydrogen-powered railway networks in a bid to cut emissions from the transport sector. On the port operation front, UAE-based DP World signed an agreement with the International Renewable Energy Agency (Irena) last month to collaborate on scaling up the use of renewable-based fuels and electrifying the shipping and ports sectors.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

  • Fortescue secures funding for Norwegian green ammonia project: Mining giant Fortescue has received nearly EUR 204 mn from the EU to finance its flagship green ammonia plant which will ship surplus green ammonia to domestic and European markets. Fortescue approved USD 750 mn total in investments in green energy projects and one green steel project last month. (Statement)
  • Adani Group’s Ambuja Cements invests in green energy projects: Indian conglomerate Adani Group’s cement and construction material making arm Ambuja Cements is set to invest USD 723 mn to build solar and wind energy projects with a total capacity of 1 GW. (Statement)
  • Sembcorp to supply green ammonia to Japan: Singapore’s Sembcorp has inked MoUs with two Japanese firms — conglomerate Sojitz Corp and energy company Kyushu Electric Power — to export green ammonia produced in India to Japan. (Reuters)
  • China allocates USD 33 bn to renovate disaster-hit areas: The Chinese finance ministry has earmarked over USD 33 bn from sovereign bonds to renovate infrastructure in areas affected by natural disasters, including climate-induced crisis. China has grappled with ultra-low temperatures in January, record rainfall, and a blistering hot summer, swings that scientists have attributed to climate change. (Reuters)
  • VinFast + Marubeni ink agreement to recycle used EV batteries: Vietnamese EV maker VinFast has signed an MoU to supply Japan’s Marubeni Corporation with used EV batteries that Marubeni will then repurpose into Battery Energy Storage Systems. (Reuters)
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ON YOUR WAY OUT

Ohio State University researchers leverage AI to scout for white hydrogen

OSU students leverage AI to scout for white hydrogen: Researchers at the Byrd Polar and Climate Research Center of Ohio State University (OSU) have developed an artificial intelligence-based machine learning system to scour the world’s geologic maps for naturally occurring hydrogen reservoirs, according to Ohio State News.

SOUNDSMART- What is white hydrogen? Geologic hydrogen — also known as white hydrogen — is believed to be produced deep underground through reactions between ultramafic and mafic rocks and anoxic water. The naturally-occurring hydrogen can be found in abundance in layers of continental and oceanic crusts, geysers, and hydrothermal systems.

About the tech: By evaluating remote sensing data — which draws on geomorphic and spectral patterns — the AI can map out nearly invisible semicircular geological depressions (SCDs) in the planet’s surface that indicate white hydrogen reservoirs.

But there are challenges: White hydrogen reservoirs can be hidden by forest or agricultural activity and distinguishing hydrogen deposits from other circular land features — such as lakes or crop circles — remains an obstacle. Byrd Polar researchers used known sites to train the system and fused their machine learning with worldwide satellite imagery data to find SCDs.

What they said: “The biggest challenge is that we need to find more SCDs and then really investigate how these things form,” the project’s lead investigator and associate professor of earth sciences at Ohio State Joachim Moortgat said. Recent discoveries of SCDs in the US, Mali, Namibia, Brazil, France and Russia have unveiled that they exist in greater numbers than previously thought, the news outlet notes. “Once we discover a lot more, we will be in a better position to again use AI tools to find similar ones worldwide,” Moortgat noted.

White hydrogen is already viable and MENA is showing interest: Last week, Morocco’s National Bureau for Hydrocarbons and Minerals signed an agreement with an unnamed Swiss company to conduct 3D seismic surveys in the Southern and Eastern parts of the country in a bid to quantify Morocco’s geologic hydrogen reserves. Oman’s Energy and Minerals Ministry signed two MoUs back in September with Eden GeoPower and Earth Sciences Consultancy Centre to conduct preliminary studies on exploring geological white hydrogen and identifying new sites for research.


DECEMBER 2023

18-20 December (Monday-Wednesday):Saudi Arabia Smart Grid Conference, Riyadh, Saudi Arabia.

JANUARY 2024

8-10 January (Monday- Wednesday): International Conference on Smart Grid and Renewable Energy, Doha, Qatar.

9-11 January (Tuesday-Thursday): Future Minerals Forum, Riyadh, Saudi Arabia.

FEBRUARY 2024

26-28 February (Monday-Wednesday): Management and Sustainability of Water Resources, Dubai, UAE.

MARCH 2024

4-6 March (Monday-Wednesday): International Conference on Sand and Dust Storms in the Arabian Peninsula, Riyadh, Saudi Arabia.

APRIL 2024

16-18 April (Tuesday-Thursday): World Future Energy Summit, Abu Dhabi, UAE.

23-25 April (Tuesday-Thursday): Connecting Green Hydrogen MENA, Dubai, UAE.

MAY 2024

19-21 May (Sunday-Tuesday): Saudi Energy Convention, Riyadh, KSA.

JUNE 2024

5 June (Wednesday): World Environment Day, Saudi Arabia.

OCTOBER 2024

10-12 October (Tuesday-Thursday): Autonomous E-Mobility Forum, Doha, Qatar.

DECEMBER 2024

2-13 December (Monday-Friday): Conference of the Parties (COP16) to the United Nation Convention to Combat Desertification, Riyadh, KSA.

EVENTS WITH NO SET DATE

2024

Early 2024: The 2023 US Algeria Energy Forum, Washington DC, USA.

12-14 February (Monday-Wednesday): Sustainable Aviation Futures MENA Congress, Dubai, UAE.

End-2024: Emirati Masdar’s 500 MW wind farm in Uzbekistan to begin commercial operations.

QatarEnergy’s industrial cities solar power project will start electricity production.

2025

International Union for Conservation of Nature World Conservation Congress, Abu Dhabi, UAE.

UAE to have over 1k EV charging stations installed.

2026

26-29 October (Monday-Thursday): World Energy Congress, Riyadh, Saudi Arabia.

UITP Global Public Transport Summit, Dubai, UAE.

Annual Meetings of the World Bank and the International Monetary Fund, Bangkok, Thailand.

1Q 2026: QatarEnergy’s USD 1 bn blue ammonia plant to be completed.

End-2026: HSBC Bahrain to eliminate single-use PVC plastic cards.

2027

MENA’s district cooling market is expected to reach USD 15 bn.

2030

UAE’s Abu Dhabi Commercial Bank (ADCB) wants to provide AED 35 bn in green financing.

UAE targets 14 GW in clean energy capacity.

Tunisia targets 30% of renewables in its energy mix.

Qatar wants to generate USD 17 bn from its circular economy, creating 9k-19k jobs.

Morocco’s Xlinks solar and wind energy project to generate 10.5 GW of energy.

2035

Qatar to capture up to 11 mn tons of CO2 annually.

2045

Qatar’s Public Works Authority’s (Ashghal) USD 1.5 bn sewage treatment facility to reach 600k cm/d capacity.

2050

Tunisia’s carbon neutrality target.

2060

Nigeria aims to achieve its net-zero emissions target.

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