{"id":74553,"date":"2022-10-31T02:06:59","date_gmt":"2022-10-31T02:06:59","guid":{"rendered":"https:\/\/enterpriseam.com\/climate\/2022\/10\/31\/today-mena-companies-fall-behind-on-disclosing-sustainability-data-ghg-hit-all-time-high-acwa-gets-ebrd-funding-eyes-expansion-in-indonesia-thailand\/"},"modified":"2022-10-31T02:06:59","modified_gmt":"2022-10-31T02:06:59","slug":"today-mena-companies-fall-behind-on-disclosing-sustainability-data-ghg-hit-all-time-high-acwa-gets-ebrd-funding-eyes-expansion-in-indonesia-thailand","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/climate\/2022\/10\/31\/today-mena-companies-fall-behind-on-disclosing-sustainability-data-ghg-hit-all-time-high-acwa-gets-ebrd-funding-eyes-expansion-in-indonesia-thailand\/","title":{"rendered":"TODAY: MENA companies fall behind on disclosing sustainability data + GHG hit all-time high + Acwa gets EBRD funding, eyes expansion in Indonesia, Thailand"},"content":{"rendered":"

Good morning, wonderful people. <\/strong>It\u2019s not a particularly busy news day for the MENA region, but EVs are taking center stage as a US-based EV manufacturer plans to bring the majority of its production to KSA before the end of the decade at the same time as Turkey makes its foray in EV manufacturing. We have more on both stories in Around the World, below.<\/p>\n

THE BIG CLIMATE STORY-<\/strong> We have an agenda for COP27, which kicks off in less than a week from today. We have the highlight reel of what to expect below.<\/p>\n

Oh, and before we move on: Happy Halloween<\/strong>, folks. What\u2019s your favourite Halloween episode? The Office<\/a>? Friends<\/a>? The Simpsons<\/a>?<\/p>\n

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<\/a> UP FIRST- <\/strong>Egypt rolled out a series of reforms + announced a USD 3 bn IMF <\/strong>loan agreement<\/strong> could impact renewables projects \u2014 and unlock fresh climate funding:<\/strong> The Central Bank of Egypt (CBE) on Thursday<\/a> floated the EGP, went for a 200 bps interest rate hike, and announced that letters of credit (L\/Cs) system will be phased out by the end of the year. The IMF immediately followed up with an announcement it signed off on a 46-month USD 3 bn extended fund facility (EFF), according to a statement (pdf)<\/a>.<\/p>\n

The EGP lost just over 22% of its value against the USD In the two business days that followed the float<\/strong>, closing yesterday at 24.13.<\/p>\n

What does this mean for companies in green industries <\/strong>doing business in Egypt or eyeing the Arab world\u2019s most populous market?<\/p>\n

#1- Egypt is in line for an additional USD 1 bn coming from the IMF could support the <\/strong>country\u2019s climate goals<\/strong>, IMF Mission Chief for Egypt Ivanna Vladkova Hollar said in Thursday\u2019s statement. The funding could come from the fund\u2019s resilience and sustainability trust<\/a>, which was set up to provide general fiscal resilience but will include provisions for climate, too. The financing will be discussed in the coming months.<\/p>\n

#2- The phasing out of measures that have effectively blocked non-food imports for months will be very good news for folks trying to get goods in for projects. <\/strong>Importers have struggled to get anything that isn\u2019t edible into the country since the former governor of the central bank imposed restrictions earlier this year<\/a>. Those restrictions, which required the use of letters of credit to finance imports, will be phased out over the next two months, EnterpriseAM<\/a> reports, suggesting the logjam will ease.<\/p>\n

The restrictions had hit the solar industry particularly hard<\/strong>, Solar Energy Development Association (SEDA) board member Hatem Tawfik told Enterprise Climate in August<\/a>, calling at the time for \u201curgent action\u201d in easing import restrictions to keep solar projects operational.<\/p>\n

#3- Rising costs in EGP terms, accompanied by higher borrowing costs, will mean some companies need to revisit plans <\/strong>as investment and maintenance costs rise, regardless of how you finance them. We don\u2019t expect the hit to be as sharp as it was last year<\/a> when soaring global commodities prices drove up solar energy prices, forcing Egypt\u2019s major solar players to increase their prices, delay projects, or accept squeezed margins \u2014 but there will be a period of adjustment.<\/p>\n

#4- Exporting energy (and other goods and services \u2014 like, say, EVs and consulting on the green economy) from Egypt just got more interesting <\/strong>for players that can bias their cost structure toward local-currency inputs \u2014 something that will get easier as Egypt looks to give businesses more incentives to make production inputs there. Egypt is on an aggressive drive to position itself as the Eastern Med\u2019s premier energy hub, including building transmission lines to Greece, Saudi Arabia and Sudan, among others.<\/p>\n

#5- Thursday\u2019s reforms underscores that the Sisi administration aims the reposition Egypt as an attractive destination for long-term capital <\/strong>\u2014 particularly as the announcement came the same week as the government promised to reveal soon policy on how to put the private sector in the driver\u2019s seat when it comes to the economy. Restoring liquidity to the Egyptian market, implementing broad fiscal reforms and undertaking structural reforms to boost private sector participation will all encourage investors to commit capital to the country, EnterprisePM noted<\/a> on Thursday.<\/p>\n

Cue GCC investment in renewables? <\/strong>The devaluation may unlock money from the GCC in particular. While we don\u2019t know if climate-focused investments are on the horizon, it\u2019s reasonable to expect that the GCC could be eyeing climate investment in Egypt, given its recent major uptick<\/a> in overseas climate<\/a> investment.<\/p>\n

HAPPENING TODAY- <\/strong><\/p>\n

In Abu Dhabi, UAE: Adipec<\/strong> runs today through Thursday, 3 November, gathering some 40 ministers from around the world including the UAE, Kuwait, Bahrain, and Egypt. Discussions will partly focus on the transition toward carbon neutrality. Hosted by Adnoc, Adipec bills itself as \u201cthe world's most influential gathering for energy industry professionals.\u201d Tap or click here to register<\/a>.<\/p>\n

In Amman, Jordan:<\/strong> Its day two of the International Investment Forum for Renewable Energy and Energy Efficiency in MENA is taking place, the Jordan\u2019s state news agency Petra<\/a> reports. The three-day event is organized by the Arab Renewable Energy Commission<\/a> and tackles renewable energy, energy efficiency, smart cities and grids, green hydrogen and sustainability. Participants include folks from Saudi Arabia, Egypt, Morocco, the US, the UK, Germany, Italy, Greece, and Turkey.<\/p>\n

COUNTDOWN TO COP (6 days to go)- <\/strong><\/p>\n

<\/a> As COP27 is less than a week away, here are some highlights to look out for:<\/strong><\/p>\n