{"id":75933,"date":"2023-02-08T02:03:38","date_gmt":"2023-02-08T02:03:38","guid":{"rendered":"https:\/\/enterpriseam.com\/climate\/2023\/02\/08\/today-pif-has-a-new-usd-5-5-bn-green-bond-sale-in-the-pipeline-neoms-price-tag-jumped\/"},"modified":"2023-02-08T02:03:38","modified_gmt":"2023-02-08T02:03:38","slug":"today-pif-has-a-new-usd-5-5-bn-green-bond-sale-in-the-pipeline-neoms-price-tag-jumped","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/climate\/2023\/02\/08\/today-pif-has-a-new-usd-5-5-bn-green-bond-sale-in-the-pipeline-neoms-price-tag-jumped\/","title":{"rendered":"TODAY: PIF has a new USD 5.5 bn green bond sale in the pipeline + Neom\u2019s price tag jumped"},"content":{"rendered":"<p><strong>Good morning, friends.<\/strong> What we thought was looking like a turtle pace in the news realm did an about-turn with some big updates coming out of KSA.<\/p>\n<p><strong>THE BIG CLIMATE STORIES-<\/strong> Saudi Arabia\u2019s sovereign wealth fund is reportedly planning to tap green debt markets for the second time in four months with a fresh USD 5.5 bn green bond sale. The planned issuance follows PIF\u2019s maiden issuance last October, which had also seen the sale of the world\u2019s first-ever 100-year green note. Elsewhere in the kingdom, a transcript from US gas supplier Air Products\u2019 1Q 2023 earnings call has revealed that Neom\u2019s mega green hydrogen project will need an additional USD 3.5 bn in capital, bringing the plant\u2019s updated price tag up to USD 8.5 bn.<strong> We have chapter and verse on this story in the news well below.<\/strong><\/p>\n<p><strong>THE BIG CLIMATE STORY OUTSIDE THE REGION- <\/strong><strong>Oil giant BP is once again drawing the<\/strong><strong> ire of climate activists as it walks back on plans to cut fossil fuel output<\/strong>, after reporting <a href=\"https:\/\/www.bp.com\/en\/global\/corporate\/news-and-insights\/press-releases\/fourth-quarter-2022-results.html\">record earnings<\/a> yesterday of some USD 28 bn for 2022, off the back of surging energy prices. The company is scaling back plans to cut oil output as part of a much-touted renewables drive put forward by CEO Bernard Looney. It\u2019s now targeting production of some 2 mn barrels of oil equivalent\/ day by 2030 \u2014 down 25% from 2019 levels, compared with its previous 40% reduction target.<\/p>\n<p><strong>Looney claims that BP is meeting an energy security need: <\/strong>\u201cWe need lower carbon energy, but we also need secure energy, and we need affordable energy. And that's what governments and society around the world are asking for,\u201d Looney is said to have told analysts.<\/p>\n<p><strong>Big talk about renewables is still on the table: <\/strong>BP reiterated its plans to increase annual spending in both cleaner energy and fossil fuels by USD 1 bn. Its renewables push will put more of a focus on using solar and wind power to generate biofuels and low-carbon hydrogen, Looney reportedly said.<\/p>\n<p><strong>The story is attracting widespread coverage in the international press:<\/strong> <a href=\"https:\/\/www.reuters.com\/business\/energy\/bp-profits-soar-record-28-bln-dividend-increased-2023-02-07\/\">Reuters<\/a> | <a href=\"https:\/\/www.ft.com\/content\/419f137c-3a83-4c9c-9957-34b6609bcdf7\">Financial Times<\/a> | <a href=\"https:\/\/www.washingtonpost.com\/business\/2023\/02\/07\/bp-climate-emissions-oil-profits\/\">Washington Post<\/a> | <a href=\"https:\/\/www.wsj.com\/articles\/bp-q4-earnings-report-2022-11675755432\">Wall Street Journal<\/a> | <a href=\"https:\/\/www.bbc.com\/news\/business-64544110\">BBC<\/a> | <a href=\"https:\/\/www.theguardian.com\/business\/2023\/feb\/07\/bp-profits-windfall-tax-gas-prices-ukraine-war\">Guardian<\/a> | <a href=\"https:\/\/abcnews.go.com\/International\/wireStory\/uk-energy-company-bps-profits-double-277-billion-96941476\">ABC News<\/a> | <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2023-02-07\/bp-mulls-deals-to-expand-oil-and-gas-production-amid-profit-boom?utm_source=google&utm_medium=bd&cmpId=google#xj4y7vzkg\">Bloomberg<\/a> | <a href=\"https:\/\/www.washingtonpost.com\/politics\/uk-energy-company-bps-profits-double-to-277-billion\/2023\/02\/07\/3cbe5b0a-a6b9-11ed-b2a3-edb05ee0e313_story.html\">Washington Post<\/a> | <a href=\"https:\/\/www.reuters.com\/breakingviews\/bp-strategy-is-still-caught-between-two-stools-2023-02-07\/\">Reuters<\/a> | <a href=\"https:\/\/www.cnbc.com\/2023\/02\/07\/bp-earnings-q4-and-fy-2022.html\">CNBC<\/a><\/p>\n<hr class=\"grey-line\">\n<p><strong>IN COP LAND- COP28 President Sultan Al Jaber hit all the high COP discussion <\/strong><strong>points in a speech at <\/strong><strong><a href=\"https:\/\/www.indiaenergyweek.com\/\">India Energy Week<\/a><\/strong><strong> in Bengaluru this week<\/strong>, <a href=\"http:\/\/wam.ae\/en\/details\/1395303125843\">Wam<\/a> notes. Al Jaber argued for policies to support growth and climate objectives to \u201chold back emissions, not progress\u201d while advocating for a massive increase in renewable energy capacity, continued investment in decarbonization tools like carbon capture, and the importance of a just and inclusive energy transition.<\/p>\n<p><strong>Bringing the energy industry on board \u201cis not a conflict of interest\u201d: <\/strong>Al Jaber also indirectly addressed the criticism that climate activists and Western media outlets <a href=\"https:\/\/edition.cnn.com\/2023\/01\/12\/world\/cop28-uae-sultan-al-jaber-president-climate-intl\/index.html\">have leveled<\/a> at the decision to appoint him as COP28 President, saying he will use his experience and network to spur the entire energy industry to climate action.<\/p>\n<hr class=\"grey-line\">\n<p><a class=\"content-anchor\" id=\"tldr-story-05\"><\/a> <strong>WATCH THIS SPACE #1- Fund managers are shifting away from <\/strong><strong>indexes once seen as a safe climate wager:<\/strong> A swathe of Paris-aligned and climate transition benchmarks \u2014 designed to help fund managers track clean assets \u2014 have been downgraded in recent months, leading some investors to use their own benchmarks in a bid to find assets that support the transition to a low-carbon future, <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2023-02-07\/fund-bosses-start-turning-backs-on-esg-indexes-after-downgrades?srnd=green-esg-investing#xj4y7vzkg\">Bloomberg<\/a> reports.<\/p>\n<p><strong>Why the downgrade? Because the indexes don\u2019t necessarily get top EU ESG <\/strong><strong>classification:<\/strong> Until late-2022, funds operated on the assumption that these benchmarks fell under the EU\u2019s top ESG classification, <a href=\"https:\/\/www2.deloitte.com\/content\/dam\/Deloitte\/ie\/Documents\/Audit\/IE_SustainableFinanceDisclosureReg_Article9.pdf\">Article 9 (pdf)<\/a> \u2014 for \u201cproducts targeting sustainable investments.\u201d But amid a wave of uncertainty over the definition of sustainable investment \u2014 and a reported lack of clarity from the EU \u2014 many fund and asset managers have chosen to downgrade benchmarks that haven\u2019t been specifically designated Article 9 to avoid legal and reputational risk, according to sustainable finance website <a href=\"https:\/\/www.responsible-investor.com\/passive-downgrades-drive-great-reclassification-of-article-9-funds\/\">Responsible Investor<\/a>. A \u201cgreat reclassification\u201d of Article 9 funds has been \u201clargely driven by downgrades of passive funds, especially Paris-aligned and climate transition benchmarks,\u201d the finance outlet notes, citing recent data from US financial services firm <a href=\"https:\/\/www.morningstar.co.uk\/uk\/news\/231438\/esg-fund-downgrade-accelerates.aspx\">Morningstar<\/a>.<\/p>\n<hr class=\"grey-line\">\n<p><a class=\"content-anchor\" id=\"tldr-story-06\"><\/a> <strong>WORTH READING- Could a green subsidy race give decarbonization a boost?<\/strong> Green subsidies from the world\u2019s largest economies could be the best way to lower carbon emissions \u2014 second only to prohibitive carbon taxes \u2014 as it will level the playing field and boost nascent technology development, a commentary published on <a href=\"https:\/\/www.reuters.com\/breakingviews\/green-subsidy-race-may-be-what-world-needs-2023-02-06\/\">Reuters<\/a> argues. The caveat is high carbon taxes and subsidizing renewables shouldn\u2019t be mutually exclusive, as evidenced by countries like the US and China heavily subsidizing renewables with little to no carbon taxes.<\/p>\n<p><strong>A subsidy race between the US, China and the EU can benefit everyone: <\/strong>While subsidies are only second best to carbon taxes \u2014 with some of the challenges of subsidizing green tech including increasing government spending and inefficient resource allocation \u2014 a renewable subsidy race between the world\u2019s three biggest blocks can help create economies of scale and lower the costs of nascent technologies. Adjustments to the green subsidy policies and protectionist measures put up by the big three blocks can help to ensure a more level playing field, especially for the Global South. Decarbonization efforts being conducted between the Global North and the Global South, as well as \u201cfriendshoring,\u201d could help technology transfer to create more opportunities for smaller economies.<\/p>\n<hr class=\"grey-line\">\n<p><strong>SOUNDBITE OF THE WEEK- No net-zero plans? You shouldn\u2019t be in business, Guterres says:<\/strong> \"Your core product is our core problem,\u201d United Nations Secretary-General Antonio Guterres <a href=\"https:\/\/www.reuters.com\/world\/2023-un-chief-amplifies-warnings-ukraine-climate-2023-02-06\/\">said during his speech<\/a> to the UN General Assembly this week. Guterres also pointed out the world\u2019s need for a renewables push instead of an expansion of fossil fuel production and a hunt for income, saying fossil fuel producers lacking adequate carbon-neutrality targets and carbon reduction goals for 2025 and 2030 \u201cshould not be in business.\u201d<\/p>\n<div class=\"row\">\n<div class=\"col-md-12 subscribe-box-panel\">\n<div class=\"\">\n<div class=\"title\">\n<h4 class=\"fw-lighter mb-10\">\n          Get <b style=\"font-weight: 700\">Enterprise<\/b> daily<br \/>\n        <\/h4>\n<\/p><\/div>\n<p class=\"mb-10\">The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox.<\/p>\n<p>     <a href=\"climate\/en\/user\/NewsLetters\" type=\"button \" class=\"btn-green px-3 d-flex align-items-center\">Subscribe here<\/a>\n    <\/div>\n<\/p><\/div>\n<\/div>\n<p><p>***<\/p>\n<p><strong>YOU\u2019RE READING ENTERPRISE CLIMATE, the essential MENA publication for senior execs who care about the world\u2019s most important industry. <\/strong>We\u2019re out Monday through Thursday at 4am Cairo \/ 5am Riyadh \/ 6am UAE.<\/p>\n<p>Were you forwarded this email? <strong>Get your own <\/strong><strong><a href=\"https:\/\/climate.enterprise.press\/subscribe\/\">subscription without charge here<\/a><\/strong> or reach out to us on <a href=\"mailto:climate@enterprisemea.com\">climate@enterprisemea.com<\/a> with comments, suggestions and story tips.<br \/>\n <strong>***<\/strong><\/p>\n<p><strong>COME TO OUR NEXT ENTERPRISE FORUM- <\/strong><\/p>\n<p class='web-image'><img data-recalc-dims=\"1\" src=\"https:\/\/i0.wp.com\/ent.news\/2023\/2\/Export-FDI-Forum_1600.jpg?ssl=1\" alt='enterprise'><\/p>\n<p><strong>We\u2019re excited to unveil our next C-level event: <\/strong>The Enterprise Exports & FDI Forum, where we will take a deep dive into two of the most critical topics affecting our community.<\/p>\n<p><strong>Exports and foreign direct investment (FDI) have never been more important to our economy<\/strong> \u2014 or our businesses \u2014 than in the wake of the float of the EGP. <a href=\"https:\/\/enterprise.press\/issues\/2022\/10\/18\/am-a-five-step-recipe-to-boost-exports-fdi-and-make-sure-egypt-never-has-to-ask-the-imf-for-another-cent\/\">We think we have a once-in-a-lifetime chance to build an export-led economy<\/a> that makes us a magnet for FDI and all the benefits that will come with it for our nation.<\/p>\n<p><strong>Want to join the conversation?<\/strong> Drop us a line on <a href=\"mailto:events@enterprisemea.com\">events@enterprisemea.com<\/a>.<\/p>\n<p><strong>CIRCLE YOUR CALENDAR- <\/strong><\/p>\n<p><strong>Egypt will host the <\/strong><strong><a href=\"https:\/\/www.egyps.com\/\">Egypt Petroleum Show<\/a><\/strong> <strong>from Monday, 13 February to <\/strong><strong>Wednesday 15 February<\/strong> in Cairo. Under the theme \u201cSupporting Sustainable Global Energy Supply and Demand,\u201d the event will host talks on sustainable development, how climate change impacts oil and gas production, and decarbonization for net zero targets.<\/p>\n<p><strong>The UAE will host the <\/strong><strong><a href=\"https:\/\/www.iaea.org\/events\/regcon2023\">International Conference on Effective Nuclear and Radiation<\/a><\/strong><strong><a href=\"https:\/\/www.iaea.org\/events\/regcon2023\">Regulatory Systems<\/a><\/strong><strong> from Monday, 13 February to 26 February<\/strong> in Abu Dhabi. This conference will host discussions on improving the effectiveness of nuclear and radiation regulatory systems and building resilience and agility in response to emerging challenges.<\/p>\n<p><strong>Egypt will host the <\/strong><strong><a href=\"https:\/\/www.egyptcsrforum.com\/\">CSR Forum<\/a><\/strong><strong> from 2-5 March<\/strong> at Somabay, Hurghada. The event aims to further discussions put forth during COP27 and boost private and public sector cooperation on climate action. You can register for the event <strong><a href=\"https:\/\/www.egyptcsrforum.com\/#tickets\">here<\/a><\/strong>.<\/p>\n<p><strong>The <\/strong><strong><a href=\"https:\/\/csrawards.co.uk\/?_vsrefdom=p.18862.c.63552&gclid=Cj0KCQiA_bieBhDSARIsADU4zLfzUfPsWrHsDesF4xVT_pp7zGcttJCxvTWsHCsCCIcA3l0joghXxKQaAr1aEALw_wcB\">Arabia CSR Awards<\/a><\/strong> <strong>is accepting applications until Friday, 30 June.<\/strong> The awardwinners will be announced during a ceremony on Wednesday, 4 October.<\/p>\n<p><strong>The first <\/strong><strong><a href=\"https:\/\/mbrsic.ae\/en\/mena-sc\/about-mena-sc\/\">MENA Solar Conference<\/a><\/strong><strong> is accepting applications from published<\/strong><strong> researchers specialized in PV technology until Sunday, 30 April.<\/strong> The Dubai Electricity and Water Authority will be hosting the conference from 15 to 18 November, in conjunction with the Water, Energy, Technology, and Environment Exhibition and the Dubai Solar Show 2023. Researchers can submit their papers <a href=\"https:\/\/mbrsic.ae\/en\/mena-sc\/paper-submission-1\/\">here<\/a>.<\/p>\n<p><strong><a href=\"https:\/\/enterprise.press\/am-edition\/#calendar\">Check out our full calendar on the web<\/a><\/strong> for a comprehensive listing of upcoming news events, national holidays and news triggers.<\/p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Good morning, friends. What we thought was looking like a turtle pace in the news realm did an about-turn with some big updates coming out of KSA. THE BIG CLIMATE STORIES- Saudi Arabia\u2019s sovereign wealth fund is reportedly planning to tap green debt markets for the second time in four months with a fresh USD [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":75934,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[44],"tags":[475,11,159,52,43],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-75933","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-what-were-tracking-today","tag-cop28","tag-enterpriseclimate","tag-saudi-arabia","tag-uae","tag-what-were-tracking-today","wpautop","entry"],"acf":{"mongo_id":"3fec6d47-19d4-4481-bc3f-7bee6077faf1","order":"0","is_powered_by":true,"story_type":"4","photo_url":"https:\/\/ent.news\/2020\/12\/30.jpg","photo_position":"above","related_issue":[75931],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>TODAY: PIF has a new USD 5.5 bn green bond sale in the pipeline + Neom\u2019s price tag jumped - Climate<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/climate\/2023\/02\/08\/today-pif-has-a-new-usd-5-5-bn-green-bond-sale-in-the-pipeline-neoms-price-tag-jumped\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"TODAY: PIF has a new USD 5.5 bn green bond sale in the pipeline + Neom\u2019s price tag jumped\" \/>\n<meta property=\"og:description\" content=\"Good morning, friends. What we thought was looking like a turtle pace in the news realm did an about-turn with some big updates coming out of KSA. 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