{"id":85973,"date":"2024-08-12T00:00:00","date_gmt":"2024-08-12T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/climate\/2024\/08\/12\/today-more-wind-for-egypt-veolia-sells-moroccos-lydec\/"},"modified":"2024-08-12T00:00:00","modified_gmt":"2024-08-12T00:00:00","slug":"today-more-wind-for-egypt-veolia-sells-moroccos-lydec","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/climate\/2024\/08\/12\/today-more-wind-for-egypt-veolia-sells-moroccos-lydec\/","title":{"rendered":"TODAY: More wind for Egypt + Veolia sells Morocco\u2019s Lydec"},"content":{"rendered":"

Good morning, friends. <\/strong>It\u2019s a busy morning with lots to unpack, beginning with us \u201ccatching wind\u201d of a new wind power facility on the horizon in Egypt courtesy of Masdar. First, the China-EU tariff squabble has landed at the WTO\u2019s feet\u2026<\/p>\n

THE BIG CLIMATE STORY OUTSIDE THE REGION- <\/strong>China <\/strong>takes the EU tariffs fight to the WTO:<\/strong> China has lodged a complaint with the World Trade Organization (WTO) over the EU\u2019s decision to impose anti-subsidy duties on Chinese EVs. China\u2019s Ministry of Commerce stated that the EU\u2019s provisional conclusion lacks both factual and legal foundation and that the decision severely violates WTO rules and undermines global cooperation on climate change. <\/p>\n

The investigation is ongoing: <\/strong>There will be additional hearings<\/a> held for the EU\u2019s anti-subsidy investigation into Chinese EV firms SAIC, Zhejiang Geely Holding Group, and BYD. SAIC \u2014 facing the highest provisional duty at 37.6% \u2014 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\u2019s decision to impose 19.9% and 17.4% import tariffs on the Chinese vehicles, respectively.<\/p>\n

REMEMBER- China has been looking to the WTO for help: <\/strong>China asked the WTO to establish an expert panel to resolve the dispute over the EV subsidies<\/a> the US is rolling out under the Inflation Reduction Act last month. China also began a dispute settlement<\/a> against the US at the WTO in March, citing \u201cdiscriminatory subsidies\u201d that exclude their EVs from the market in March.<\/p>\n

The story made headlines in the international press:<\/strong> AP<\/a> | Reuters<\/a> | Bloomberg<\/a> | The Financial Times<\/a> | Axios<\/a> | Euronews<\/a> <\/p>\n

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WATCH THIS SPACE-<\/p>\n

<\/a>#1- Egypt\u2019s NREA allocates land for renewables plants: <\/strong>The Egyptian New and Renewable Energy Authority (NREA) has allocated land plots spanning 31k km for investors looking to set up renewable energy projects, Al Mal<\/a> reported on Thursday, citing sources from Egypt\u2019s Electricity Ministry. The total renewable energy expected from these projects is estimated at 113 GW \u2014 most of which will be generated from green hydrogen, namely from projects that first saw the light during COP27 in 2022<\/a>. <\/p>\n

Who and where?<\/strong> Orascom Construction, Masdar, Al Nowais, Acwa Power, and Norway\u2019s Scatec are all on the list of interested parties in line for plots. The largest portion of the land is located in Sohag and Aswan, the sources told Al Mal.<\/p>\n

IN OTHER EGYPT NEWS- The first transformer at <\/strong>the Egyptian-Saudi 500 kV interconnection station in Egypt\u2019s Badr City was installed on Saturday<\/strong>, according to a statement<\/a> released on Saturday. The interconnection aims to enhance the electrical grid\u2019s connectivity with neighboring networks, and allow countries to trade their renewable energy generation. The transformer built in Badr City is the first of its kind in the Middle East in both size and type of technology employed.<\/p>\n

The project is coming a long way: <\/strong>The infrastructure for the 3 GW Egypt-Saudi interconnection project<\/a> was around 40-50% complete in February. The project \u2014 which consists of 3 stations connected via 1.35 km of overhead lines and 22 kms of submarine cables in the Gulf of Aqaba \u2014 is expected to come fully online in 2026.<\/p>\n

ALSO- Egypt inaugurated the first meeting of the Environmental and Climate Policy Committee \u2014 a new body aimed at steering the country\u2019s green transition<\/strong>, according to a statement<\/a>. The committee \u2014 headed by Environment Minister Yasmine Fouad with the participation of key ministries and stakeholders \u2014 will focus on setting objectives, responsibilities, and collaboration across sectors in order to facilitate international financing for Egypt's green initiatives. The committee will also discuss the practical implementation of the Organisation for Economic Co-operation and Development\u2019s (OECD) recommendations for Egypt\u2019s green growth policies. <\/p>\n

<\/a>#2- <\/strong>Joby <\/strong>to operate eVTOLs in Dubai next year: <\/strong>US-based electric aircraft maker Joby<\/a>Aviation<\/a> is set to commence commercial services of its battery-powered air taxis in Dubai by late next year, Bloomberg<\/a> reported last week, citing comments by the company\u2019s CEO JoeBen Bevirt. The company plans to have the infrastructure needed to run the electric air vehicles ready this year, before running initial flights in 2H 2025, in preparation for a full commercial launch at the end of 2025. The certifications needed to inaugurate the product \u2014 to be obtained from the US Federal Aviation Administration and other international regulators \u2014 are still pending.<\/p>\n

Joby is expanding in the region: <\/strong>The eVTOL outfit is also taking part<\/a> in Abu Dhabi\u2019s Smart and Autonomous Vehicles Industry cluster and inked an MoU<\/a> with Abu Dhabi\u2019s Department of Municipalities and Transport to lay the groundwork for it to introduce inter-emirate electric air tax services as early as 2025, last month. Joby is also partnering with Aramco subsidiary Mukamalah Aviation to deploy eVTOLs<\/a> in Saudi Arabia.<\/p>\n

<\/a>#3- <\/strong>Chinese EV manufacturers eying investments in Turkey:<\/strong> Chinese automakers Chery and Saic are in talks with Turkish authorities and potential domestic partners to invest over USD 1 bn each in setting up electric and hybrid manufacturing facilities in Turkey, Reuters<\/a> reported last week, citing comments made by head of the presidential investment office Burak Daglioglu. Saic\u2019s distribution firm in Turkey, Dogan Trend Otomotiv<\/a>, is also close to inking an agreement with Saic to build combustion and hybrid cars in the country. This follows the Turkish government\u2019s introduction of a USD 5 bn incentive package<\/a> for factories with a capacity of at least 150k electric or hybrid vehicles.<\/p>\n

Other Chinese car makers are eying Turkey too: <\/strong>Last month, Chinese EV maker BYD signed an agreement with the Turkish government to build a USD 1 bn EV and hybrid production plant<\/a> in the country, with another data center investment scheduled by year's end. Turkey\u2019s EV manufacturer Togg is also reportedly negotiating a possible collaboration with Chinese carmaker Guangzhou Automobile Group.<\/p>\n

The EU has a lot to gain:<\/strong> Other than serving the domestic market, the move could be a means of evading extra tariffs imposed by the EU on Chinese EV imports<\/a>, especially as Turkey holds the position of largest car manufacturer in Europe and highest exports with an annual value exceeding USD 35 bn. Stakeholders can use the agreement to their advantage by entering European markets using Turkey\u2019s customs union with the EU.<\/p>\n

#4- Oman is launching a tender for a landfill gas to energy <\/strong>facility this month:<\/strong> Oman Environmental Services Holding Company (Be\u2019ah) will accept bids for constructing a landfill gas-to-energy system this month, Zawya Projects<\/a> reported last week, citing the company\u2019s tender document. OQ Trading \u2014 a state-owned international energy and commodity-trading company \u2014 will advise on project development and carbon credit sales. An international tender for the Engineering, Procurement, and Construction (EPC) of systems in Barka and Al Multaqa was issued in July 2024. The tender documents are available until 11 August, with the bid for submission opening on 25 August. <\/p>\n

Be\u2019ah is already capturing gas at other sites:<\/strong> Currently, gas is being captured at the Al Multaqa and Barka landfills, with future plans to register the project, amongst others, for carbon credits, according to the OIA\u2019s latest annual report (pdf)<\/a>. The firm is also exploring alternative uses for the captured gas, such as converting it into biogenic CO2 or adding it to the national supply of natural gas, the report states.<\/p>\n

And is working on a WtE project in Barka: <\/strong>Be\u2019ah, in partnership with Nama Power and Water Procurement Company is also working on a waste-to-energy project in Barka<\/a> to treat over 70% of Oman\u2019s annual municipal solid waste, according to the report. The WtE plant, expected to have a power capacity between 130-140 MW, is projected to be operational by Q2 2028.<\/p>\n

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DANGER ZONE- <\/p>\n

Where did Cairo\u2019s trees go? <\/strong>In the three years leading up to 2020, Cairo lost some 911k sqm of green space as the government carried out projects to expand main roads, slashing the governorate\u2019s trees in the process, Reuters<\/a> writes. Cairo also witnessed a number of parks cleared to make room for shops and cafes, while other green spaces have been removed for no clear reason. This has left the country with 1.2 sqm of green space per capita \u2014 far below the World Health Organization\u2019s recommended 9 sqm. <\/p>\n

The loss of green space carries significant health implications:<\/strong> The loss of parks, gardens, and other green spaces can exacerbate what experts cited by Reuters call the \u201curban heat island effect,\u201d in which natural land cover is replaced with dense concentrations of pavement, buildings, and other heat-absorbing and heat-retaining surfaces. Urban heat islands increase the likelihood of heat related illness, something that will only be exacerbated as heat waves become more frequent with climate change.<\/p>\n

SPEAKING OF TREES- Deforestation in Brazil\u2019s Amazon rainforest <\/strong>increased in July<\/strong>, breaking a 15-month decline achieved under President Lula da Silva, Reuters<\/a> reported last week citing data from the country\u2019s Environment and Science ministries. Approximately 666 sqm of jungle were cleared, a 33% rise compared to the same month last year. The increase is attributed to a strike by environmental workers, climate change-induced droughts and fires, and the municipal election year, which typically sees higher deforestation rates. This makes the goal to end deforestation by 2030 \u2014 pledged by Lula\u2019s administration \u2014 more difficult to achieve. <\/p>\n

About the strike: <\/strong>The environmental workers\u2019 strike, which began in June demanding better wages and working conditions for environmental workers, has severely impacted the enforcement of laws against deforestation, the report added. The number of environmental fines issued by the main federal environmental enforcement agency fell by 63% for the year up to August 6. <\/p>\n

THE SCORECARD- <\/p>\n

The Saudi electric car market is expected to grow 6% annually until 2030<\/strong>, Aleqtisadiah<\/a> quotes Lucid Group COO Mark Winterhoff as saying. EV sales in the Kingdom are projected to reach between 210k-250k by that year, and is in line with the government\u2019s target to produce 500k vehicles per year with USD 50 bn in investments. The broader Middle East electric car market is forecasted to expand to USD 8 bn by 2028, up from its current USD 2.7 bn. <\/p>\n

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THE ENTERPRISE FINANCE FORUM- <\/p>\n

Are you planning to be in Egypt on 24 September? <\/strong>You may be interested in attending our 2024 Enterprise Finance Forum. Seating is strictly limited at our flagship, invitation-only forum for C-suite executives and other senior leaders. <\/p>\n

Why attend? We\u2019re in the early days of a generational realignment of power in our <\/strong>industry<\/strong> \u2014 in our region and beyond \u2014 and on the cusp of the biggest intergenerational transfer of wealth the world has ever seen<\/strong>. With that as the backdrop, we\u2019re going to take stock of where we stand six months after the float of the EGP and ask what\u2019s next for finance in Egypt and the wider region. Among the questions we\u2019ll be asking:<\/p>\n