Good morning, ladies and gents. We have a fairly meaty issue this morning with some exciting eVTOL movement in Oman courtesy of Honeywell, and a smattering of debt and solar updates. First, an update from the earnings world abroad…

THE BIG CLIMATE STORY OUTSIDE THE REGION- Tesla’s 2 Q earnings are dominating the headlines as the company’s net income took another dip. The company’s bottomline fell by 45% y-o-y netting USD 1.48 bn despite price cuts and low-interest financing, with global electric vehicle sales dropping to 443.k units down 4.8% from the previous year. Revenues rose slightly by 2%, surpassing Wall Street estimates, clocking in at USD 25.5 bn. Tesla’s energy storage business saw significant growth, doubling its revenue to over USD 3 bn.

The company has been facing challenges with weakening demand for its aging product lineup and regulatory scrutiny over its “Full Self Driving” system which caused several crashes. The company is also delaying the unveiling of its robotaxi until October and plans to begin limited production of its Optimus humanoid robot next year.

The story grabbed widespread headlines in the int’l press: Reuters | AP | Bloomberg | The Wall Street Journal | Financial Times | The New York Times | CNBC

WATCH THIS SPACE-

#1- Egypt’s Beltone receives carbon trading license: The Egyptian stock exchange’s membership committee has approved asset management firm Beltone Financial’s request to trade in carbon emission reduction certificates, Mubasher reported, citing a statement by the exchange. Beltone is set to appoint a trained executor to be responsible for trading operations on the carbon certificates, in accordance with the Financial Regulatory Authority’s (FRA) regulation on carbon trading issued earlier this week.

ICYMI- FRA rolled out requirements for carbon trading: As part of the new rules, brokerage firms looking to trade carbon certificates must have a minimum issued and paid-up capital of EGP 15 mn to get the greenlight from the authority. Firms’ ownership rights should also not fall below the paid-up capital, and must make the required tech infrastructure, cybersecurity, and e-systems needed to trade carbon certificates.

#2- LG is looking to produce cathodes used in EV batteries in Morocco: Morocco is one of three countries being considered by South Korean battery manufacturer LG Energy Solution (LGES) as the next site for a new lithium iron phosphate (LFP) cathode production plant, head of the firm’s advanced automotive battery division Wonjoon Suh told Reuters in an interview. Finland and Indonesia are the two other locations being considered to host the plant. LGES is also negotiating with three Chinese suppliers to produce the low-cost EV batteries with exports pegged for European markets, Wonjoon added without naming the companies.

Skirting EU tariffs: The partnership of LGES with Chinese firms comes on the back of incoming EU tariff hikes up to 38% on EVs imported from China. Chinese firms have begun looking into investing in battery and battery part making in Europe and its neighbors as a workaround, the newswire writes.

Not the first to look into building a cathode factory in Morocco: Morocco and Chinese EV battery components maker BTR New Material inked a USD 297 mn investment agreement to build a cathode factory for EV batteries in April.

ON A RELATED NOTE- There will be additional hearings held for the EU’s anti-subsidy investigation into Chinese EV firms SAIC, Zhejiang Geely Holding Group, and BYD, Bloomberg reports, citing company statements. SAIC — facing the highest provisional duty at 37.6% — recently attended a hearing with the European Commission requested by the company, while Geely and BYD are also engaging with EU regulators to push against the block’s decision to impose 19.9% and 17.4% import tariffs on the Chinese vehicles, respectively.

A final decision is pending in November: The hearings come as Beijing and Brussels negotiate ahead of a November deadline to finalize the tariffs, with the EU accusing Chinese automakers of receiving unfair state subsidies. China has criticized the EU's actions as a violation of World Trade Organization rules and has initiated a counter-investigation into European goods.

#3- Climate-focused Princeville Capital to set up shop in Abu Dhabi: Leonardo DiCaprio-backed VC Princeville Capital is planning to launch an office in Abu Dhabi’s startup incubator Hub71, with plans to commit “multi-mn USD” in funding for climate tech startups in the hub, Bloomberg reports, citing a Hub71 statement. The VC will act as the first international anchor for Hub71, the hub said in a video (watch, runtime: 1:42).

WORTH READING-

The EU’s new ban on raw material imports produced on deforested land is sparking opposition from commodity-producing nations and industries, Bloomberg reports. Critics argue that the new regulation will disproportionately affect smallholders and increase compliance burdens. Countries producing commodities like Indonesia — a major palm oil producer — as well as trading partners such as the US, criticize the regulation as an unfair trade barrier.

What does the rule entail? The European Deforestation Regulation (EUDR), effective from June 2023, requires companies importing into or exporting from the EU to prove that their products — including palm oil, soy, beef, and cocoa — are not produced on land deforested from 2021 until today. The rules also mandate compliance with local human rights and indigenous peoples’ laws. Businesses must adapt by the end of 2024, with a six-month extension for small businesses.

DANGER ZONE-

Wealthy western nations keep pumping out GHG emissions: The world’s wealthiest countries — including the US, the UK and Canada — are set to unleash nearly 12 bn tons of greenhouse gas emissions through a surge in new oil and gas production, The Guardian reports, citing data it obtained from the International Institute for Sustainable Development (IISD). This level of emissions is comparable to China’s annual carbon output and marks the highest yearly emissions volume since 2018.

Wealthy nations are responsible for 67% of new licenses since 2020, The Guardian writes. Fossil fuel investment has surged to levels not seen since the 2015 Paris Agreement, as a result of affluent countries — which have the capacity and obligation to lead a transition to cleaner energy — issuing a record 825 new licenses in 2023. The current and upcoming licenses could lead to more emissions than the previous four years combined.

They’re not taking accountability: The UK, Norway, and Australia disputed the IISD’s figures on their fossil fuel activities while defending their climate policies, while the US and Canada have not responded to the criticism. Meanwhile, more than 30 developed countries in the report have issued 121 new licenses so far this year — surpassing the combined total of the rest of the world.

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CIRCLE YOUR CALENDAR-

The UAE will host the World ESG Summit from Tuesday, 20 August to Wednesday, 21 August in Dubai. The summit will gather experts and industry leaders to explore new ways to integrate Environmental, Social, and Governance (ESG) principles into business practices.

Turkey will host the International Conference on Clean and Green Energy Engineering from Saturday, 24 August to Monday, 26 August in Izmir. The event will gather researchers and professionals to share advances in clean energy. It will also offer a platform to discuss the latest research, practices, and applications in clean and green energy engineering.

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