Good morning, ladies and gents. <\/b>We have a meaty issue this morning ahead of the weekend, with big news emerging from Egypt and a timeline for JinkoSolar\u2019s upcoming mega solar cell manufacturing plant.<\/p>\n
THE BIG<\/strong> CLIMATE STORY OUTSIDE THE REGION- It\u2019s quiet on the international climate <\/strong>news front<\/strong>, but new data released by the Environmental Defense Fund shows US oil and gas producers are emitting 4x the rate of methane estimated by the Environmental Protection Agency. Data collected by MethaneAIR<\/a> from 70% of the US onshore oil and gas production areas showed emissions surpass the industry\u2019s own targets by eightfold, emitting around 7.5 mn metric tons of methane annually, equivalent to 860 metric tons per hour. The data points to a mismatch between industry pledges and actual emissions, raising questions about the effectiveness of current management practices by regulators. The story was picked up by<\/strong> Reuters<\/a><\/strong>, the <\/strong>Financial Times<\/a><\/strong>, and <\/strong>Bloomberg<\/a><\/strong>.<\/strong><\/p>\n WATCH THIS SPACE-<\/p>\n <\/a>#1- Egypt streamlines environmental approvals: <\/strong>The Egyptian Cabinet approved amendments to the executive bylaws of the environmental law to streamline the process of obtaining environmental approvals for projects, according to a statement<\/a>. The amendments aim to ensure faster issuance while maintaining compliance with global environmental standards, and will introduce a voluntary compliance mechanism for existing facilities to align with environmental criteria.<\/p>\n Key changes: <\/strong>The amendments give the board of the Environmental Affairs Agency power to oversee the agency's operations and policy formulation, the statement adds, stipulating all entities must submit an environmental impact assessment before commencing with any projects to ensure thorough evaluation and compliance. The amendments also require companies to adhere to accurate environmental measurements and reporting to record any environmental impact from their activities, and notify the Environmental Affairs Agency of any violations that might occur.<\/p>\n <\/a>#2- Fitch expects an ESG sukuk slowdown: <\/strong>Fitch Ratings predicts slower issuance of ESG sukuk in 3Q 2024 with the forecasts in line with the market seasonality of a global sukuk slowdown during the period, according to the agency\u2019s Global ESG Sukuk Outlook<\/a>. It said it expects the sukuk to regain traction between 4Q 2024 and 1Q 2025. <\/p>\n By the numbers: <\/strong>Global outstanding ESG sukuk rose 41% y-o-y to USD 43 bn at the end of 1H 2024, with Islamic finance core markets \u2014 GCC countries, Malaysia, Indonesia, Turkey and Pakistan \u2014 seeing ESG sukuk issuance up 13% over the period to USD 6.3 bn. <\/p>\n #3- Half of the 94% of the Asian companies adhering to the Science Based Targets <\/strong>initiative have no clear plan on how to <\/strong>achieve the set goals<\/strong>, Schneider Electric's head of sustainability business in Asia Pacific, India, the Middle East and Africa Farrukh Shad said at Bloomberg<\/a> \u2019s Singapore Sustainable Business Summit. Financial institutions can play a crucial role in bridging this gap by helping companies plan their transitions and offering better terms for sustainable projects, Bangkok Bank President Chartsiri Sophonpanich said at the panel. Government-led policies like carbon trading are also essential. Expanding and mandating climate disclosures can attract investors to finance decarbonization goals, benefiting firms with global operations. <\/p>\n #4- More heat for ESG state-side: <\/strong>A US congressional committee has asked over 130 investors to outline their ESG-related goals and warned investors that emissions reductions pledges could be in violation of antitrust laws, Reuters<\/a> reports. Despite the warning, no antitrust lawsuit has been filed against any climate coalition but former regulators have been brought in by the committee as part of a probe. A spokesperson for climate-focused investor group Ceres said \"tens of thousands of documents\" had already been outlined for the committee and the request was \"unlikely to gather any new information\" and represented \u201canother attempt to deter investors from participating in the initiative.\u201d <\/p>\n REMEMBER- The Red Party has been coming after ESG for some time: <\/strong>A group called Consumers\u2019 Research launched a USD multi-mn lobbying campaign against banks engaging in ESG funding since 2022, arguing that the company participating in ESG financing is misusing retirement funds. The anti-ESG movement also argued that incentivising green funding creates market distortion, risks greenwashing, lowers investment return, reduces shareholder value, and generally impedes economic growth. Several major asset managers, including BlackRock, have scaled back their green commitments and ditched Climate Action 100+ as a result. Read all about ESG divestment in our handy <\/strong>Enterprise Explainer<\/a><\/strong>. <\/strong><\/p>\n #5- Taxation for climate disaster protection provisionally agreed by <\/strong>G20: <\/strong>G20 finance ministers in Brazil have agreed provisionally to tackle taxation of the world\u2019s wealthiest to help bring relief from repercussions of climate disasters and other pressing issues, yet conflicts have emerged on how to implement the scheme, Sky News<\/a> reported earlier this week, citing a joint communique. The ministers agreed \"engage cooperatively to ensure that ultra-high-net-worth individuals are effectively taxed\" in a move hailed by rights groups as \u201cserious global progress.\u201d<\/p>\n What\u2019s next? <\/strong>Divisions have emerged on whether the talks for such a scheme should be hosted by the UN or through the Organization for Economic Cooperation and Development (OECD) which was founded by US and European allies, according to Reuters<\/a>. US Treasury Secretary Janet Yellen told Reuters that the OECD could be a better choice as it has already been handling talks over a global two-part corporate tax pact for the past three years. \"We don't want to see this shifted to the UN,\" Yellen said, adding that the OECD \"is a consensus-based organization. We've made a huge amount of progress, and the UN doesn't have the technical expertise to do this.\"<\/p>\n DANGER ZONE- <\/p>\n <\/a><\/strong>Tunisia\u2019s booming <\/strong>phosphate is good for business, bad for environment: <\/strong>Tunisia\u2019s increased push for phosphate reserves in its Gafsa Valley is causing the region to suffer from severe environmental degradation and health issues, Foreign Policy<\/a> reported earlier this week. These reserves, managed by the state-owned Company of Gafsa Phosphates (CPG), account for 15% of Tunisia's total exports. Despite this economic boom, the region is plagued by pervasive black dust, leading to chronic respiratory problems among residents.<\/p>\n Environmental concerns are piling up: <\/strong>Environmental concerns are mounting as phosphate mining depletes water resources and pollutes the soil. Farmers in the region also struggle with water shortages as wells are diverted to phosphate laundries. Streams of polluted mud also flow from the mines, contaminating agricultural land and harming livestock.<\/p>\n Some are calling for action: <\/strong>Civil society organizations, such as the Tunisian Forum for Economic and Social Rights, are advocating for greater transparency and accountability in the industry. The town council of El Hamma has lodged complaints against the CPG due to the adverse effects on local farming. Despite these challenges, the Tunisian government continues to prioritize phosphate production, viewing it as a critical economic resource amid the country's financial crisis.<\/p>\n Tunisia\u2019s <\/strong>Monastir Bay is also facing an environmental crisis: <\/strong>The government must declare an \u201cenvironmental emergency\u201d as the Monastir Bay as the area continues to grapple with severe pollution, the Tunisian Forum for Economic and Social Rights\u2019 member Monir Hussein said<\/a> in a radio interview. The bay, once rich in biodiversity, has suffered since the establishment of the Bou-Hjar purification plant which discharges untreated wastewater, leading to fish deaths and water discolouration. The pollution is impacting health, the fishing industry, and the economy, prompting civil society to demand urgent action and a shift towards sustainable waste management. Hussein also criticized the state's development model which he says opts for relocating pollution over addressing its root causes.<\/p>\n The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox.<\/p>\n Subscribe here<\/a> <\/div>\n<\/p><\/div>\n<\/p><\/div>\n *** EXPLORE MORE OF ENTERPRISE ON THE WEB \u2014<\/strong> tap or click here<\/a> to read EnterpriseAM, EnterprisePM, Enterprise Climate, Enterprise Logistics, and The Weekend Edition on our powerful new website packed with reader-friendly features. <\/p>\n Were you forwarded this email? Get your own <\/strong>subscription without charge here<\/a><\/strong> or reach out to us on climate@enterprisemea.com<\/a> with comments, suggestions and story tips. CIRCLE YOUR CALENDAR- <\/strong><\/p>\n The UAE will host the <\/strong>World ESG Summit<\/a><\/strong> from Tuesday, 20 August to Wednesday, 21 <\/strong>August<\/strong> 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. <\/p>\n
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