Good morning, nice people. It’s a much calmer day as people ease back into the working week, but we have a significant green finance update emerging from Egypt. Before we jump into that, a quick update on the China-EU front…

THE BIG CLIMATE STORY OUTSIDE THE REGION- China calls for an end to EU’s EV tariffs: China wants the EU to put a stop to provisional tariffs on EV imports by 4 July. The duties of up to 38.1% on Chinese EVs is set to be put into effect by 2 November as the EU’s investigation of unfair tax credits on the imports continues. China has also threatened retaliation should the protectionist measures go through and hinted at slapping tariffs up to 25% on European cars with 2.5 or above liter engines, lead analyst at Merics Jacob Gunter told Reuters.

China is trying to cozy up to Germany: China has pitched lowering the 15% existing tariffs on large-engine cars from the EU — benefitting German luxury car manufacturers — if Germany convinces the bloc to drop the levies, according to sources close to the matter, according to comments made during a meeting between China’s Commerce Minister Wang Wentao and German counterpart Robert Habeck. The alternative could see Beijing hitting large European cars with a 25% fee that would particularly hurt Germany, a country already opposed to the tariffs on Chinese EV imports. The story grabbed ink in Reuters, AP, and CNBC.

WATCH THIS SPACE-

#1- Japan’s Itochu Corporation and ADX-listed Emirates Steel Arkan will launch a feasibility study to explore setting up a low-carbon iron processing plant in Abu Dhabi, Zawya reports, citing Japanese news outlet Nikkei Asia. The project will be in collaboration with Japanese steel manufacturing firm JFE Steel and aims to produce 2.5 mm metric tons of reduced iron annually starting in 2027. High-grade iron ore will be sourced from Brazil by CSN Mineracao — a company partially owned by Itochu — processed in the UAE, and then exported to Japan.

We knew this was coming: Emirates Steel Arkan signed an MoU with the UAE’s AD Ports Group, Itochu Corporation, and JFE Steel to work on establishing the integrated low-carbon iron supply chain complex last year. The company first announced the partnership back in 2022. The plant’s initial expected production date of 2H 2025 has been delayed.

UAE 💚 green iron: Renewables giant Masdar has been looking at raising the production capacity of its pilot project to produce green iron ore for Emirates Steel Arkan from 2 MW electrolyzers to 100 MW in its second phase. The UAE’s AD Ports Group and Liberty Steel, the steelmaking arm of UK-based investor GFG Alliance, inked an MoU last December to explore plans to set up a green iron production facility in the Khalifa Economic Zones Abu Dhabi (Kezad).

#2- Saudi’s Energy Ministry has launched an “unprecedented” geographic survey to identify suitable sites to develop renewable energy projects, according to a statement. The statement said the project’s contracts were awarded to local firms to install 1.2k stations to measure solar and wind energy over 850k sqm.

The first of its kind: Energy Minister Prince Abdelaziz bin Salman said that no other country globally has attempted to conduct a similar survey on such an area scale, according to the statement. (Think the land areas of UK and France combined or Germany and Spain combined, according to the minister)

IN CONTEXT- The project will be key in having the Kingdom generate 50% of its electricity from renewable energy sources by 2030. The Kingdom plans to tender new renewable energy projects with a capacity of 20 GW annually starting this year, according to the minister. It hopes to reach between 100 GW and 130 GW by the end of the decade.

#3- NextNorth + FlyNow to collaborate on urban air mobility: Spain’s air taxi platform NextNorth Air Mobility and Austria’s Urban Air Mobility (UAM) company FlyNow Aviation have signed an MoU to partner on UAM solutions in the Middle East, according to a press release. FlyNow recently said it is planning to test its new eVTOL in the UAE and Saudi Arabia in 2025 as part of its goal to make flying taxis affordable, efficient, and scalable.

#4- Global coalition urges governments to step up climate ambitions by 2025: A coalition — dubbed Mission 2025 — of major corporations, financial institutions, cities, and regions has been formed to push governments to raise climate ambitions, Reuters reports. Convened by Groundswell and supported by groups such as Global Optimism, Systems Change Lab, and the Bezos Earth Fund, the coalition will back bold climate action by political leaders. This comes ahead of the February 2025 deadline for countries to submit their nationally determined contributions (NDCs) to the UN, which will include emission-cutting plans.

Support for green policies is waning: Concerns are rising over politicians potentially weakening measures to tackle global warming amid a growing “greenlash,” The Financial Times writes. Recent rollbacks on environmental measures by several companies and governments, such as Germany’s softened proposal on greener boilers and the EU's scrapped target on agricultural emissions, are amongst the recent moves that are sparking concern. Green politicians’ election losses in Europe also suggest diminishing voter support for climate policies.

THE SCORECARD-

At least USD 10 tn of new ins. needed to reach net zero: At least USD 10 tn of new ins. cover for energy, road transport, and building sectors will be needed between 2023 and 2030 to reach net zero, The Financial Times reports, citing ins. broker Howden and Boston Consulting Group. This would cover more than half of the USD 19 tn already invested in the energy transition and includes coverage for offshore wind projects, solar farms, and the insulation of existing housing.

This places “unprecedented structural pressures” on the sector: Ins.ers already pay for coverage on hydrogen-powered and electric vehicles, offshore wind, and hybrid building materials, but are facing pressure to expand coverage to more recent green technologies. This would entail that insurers take on new risks with products that lack information on possible losses and are harder to underwrite. While some are calling on ins. firms to divert funds from fossil fuel projects to free up resources to insure new green initiatives, the risks involved makes it unlikely in the short term.

DANGER ZONE-

Tehran sinks as water shortage persists: Iran’s acute water crisis is putting more than 800 towns and villages — including Tehran and Isfahan — at risk of ground collapse, Deutsche Welle reports, citing comments made by Iranian authorities. The country’s capital Tehran sinks up to 22 cm annually — seven times higher than the normally predicted drop, according to the news outlet. The risk of land subsidence also threatens the country’s infrastructure, expert on hydraulic structures and dam construction Roozbeh Eskandari told DW. So far the government has only invested in short term solutions such as diversion of water or building dams, which are not enough to curb the crisis and could lead to regional conflict over water, Eskandari said.

Too much rain is also a problem: Iran has experienced more rainfall in recent months after years of water shortages, but it resulted in flooding as the dried up soil struggled to absorb the water. The flooding particularly affected poor provinces like Sistan and Baluchistan.

What’s the root of the issue? Iran’s growing population — that has doubled in the last 40 years — coupled with increased household,industry, and agricultural water mismanagement, is causing irreversible damage to groundwater reservoirs, with some groundwater reservoirs being permanently depleted.

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CIRCLE YOUR CALENDAR-

Turkey will host the Nuclear Power Plants Summit & Expo from Tuesday, 2 July to Wednesday, 3 July in Istanbul. The event will gather utility companies, independent power producers, government officials, and industry leaders to explore nuclear power projects, plans, products and tech solutions.

Egypt will host the Egypt Mining Forum from Tuesday, 16 July to Wednesday, 17 July in Cairo. The event will convene decision-makers from government, industry experts, new exploration firms, financiers, and investors to explore the challenges and advantages to establish Egypt as a leading global mining hub by 2040.

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