{"id":86693,"date":"2024-09-12T00:00:00","date_gmt":"2024-09-12T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/climate\/2024\/09\/12\/today-uaes-irh-partners-with-indian-companies-to-shore-up-critical-minerals-supply-chain\/"},"modified":"2024-09-12T00:00:00","modified_gmt":"2024-09-12T00:00:00","slug":"today-uaes-irh-partners-with-indian-companies-to-shore-up-critical-minerals-supply-chain","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/climate\/2024\/09\/12\/today-uaes-irh-partners-with-indian-companies-to-shore-up-critical-minerals-supply-chain\/","title":{"rendered":"TODAY: UAE\u2019s IRH partners with Indian companies to shore up critical minerals supply chain"},"content":{"rendered":"

Good morning, folks. <\/strong>It\u2019s finally the weekend, and we have a compact issue this morning with the latest updates from the critical minerals mining world and an update on Egypt\u2019s blockbuster renewables-power desalination program. First, there appears to be an about-turn from Brazil\u2019s climate champion\u2026<\/p>\n

THE BIG CLIMATE STORY OUTSIDE THE REGION- There\u2019s no single story shaping the <\/strong>conversation this morning<\/strong>, but Brazilian President Luiz Inacio Lula da Silva is reportedly succumbing to the pressure by committing to plans to finish the BR-319 highway that cuts through the Amazon rainforest, Reuters<\/a> reports. Lula\u2019s commitment comes despite warnings the project could cause a \u201ccatastrophic wave of deforestation,\u201d and news that the Amazon faces a record drought is hampering waterway navigation from the north of Brazil. AP<\/a><\/strong> also picked up the story.<\/strong><\/p>\n

About the highway: <\/strong>The BR-319 extends around 900 km from Porto Velho near Bolivia to the Amazon\u2019s biggest city Manaus. The project was first started in the 1970s before being abandoned, allowing the jungle to overgrow the progress. Around 400 km of the highway need to be paved, and two bridges need to be rebuilt to allow trucks to cross the Igapo-Acu river.<\/p>\n

Experts are concerned:<\/strong> \"As unprecedented drought and fires ravage the Amazon, the paving of the BR-319 highway will unleash a catastrophic wave of deforestation that further exacerbates today's crisis, with dire global climatic implications,\" Amazon Watch Christian Poirier told the newswire.<\/p>\n

Lula is seen drifting from his championed climate priorities: <\/strong>Lula\u2019s decision over the highway contradicts his stance to limit the Amazon\u2019s destruction. \"The world that buys our food is demanding that we preserve the Amazon. And why? Because they want us to take care of the air they breathe,\" he said, stressing that his country would not keep the Amazon as a \"sanctuary for humanity\" but would instead focus on developing the region economically in a way that was sustainable. <\/p>\n

WATCH THIS SPACE-<\/p>\n

<\/a>#1- <\/strong>Egypt <\/strong>to tender the first phase of mega desalination programme in 4Q 2024: <\/strong>Egypt will start tendering the first phase of its ambitious Public-Private Partnership (PPP) water desalination programme in 4Q this year, Zawya Projects<\/a> reports, citing comment made by the Director of the Egyptian Finance Ministry\u2019s PPP unit Atter Hannoura at a PPP forum in Dubai.<\/p>\n

What\u2019s on the table:<\/strong> The first phase, which will hold an investment ticket of USD 3 bn, includes the development of 15 renewable energy-powered desalination plants with a total capacity of 3.35 mn cbm\/d by 2025, Hannoura said. Four desalination plants will be offered to investors, with the tendering phase starting with two desalination plants in Dabaa and El Hamam. The two plants will have capacities of 40k m\u00b3\/day and 190k m\u00b3\/day, respectively. The investments for the two plants are estimated at USD 210 mn.<\/p>\n

This has been in the works: <\/strong>Seventeen regional and international consortiums were prequalified last year<\/a> for the tender process for several of the country\u2019s planned desalination as part of the first phase of the government\u2019s desalination program. The country\u2019s sovereign wealth fund said at the time that it plans to have three or four plants tendered in 3Q 2023, yet it remains unclear what caused the delay.<\/p>\n

REMEMBER-<\/strong> Egypt needs over 114 bcm of water annually to achieve full self-sufficiency, but only 60 bcm is available each year, according to officials. This has pushed Egypt to resort to alternatives despite hefty price tags, including the EGP 18 bn Bahr El Baqar wastewater treatment facility<\/a>. Egypt\u2019s USD 50 bn water plan<\/a> could even grow to cost EGP 1 tn by 2037, President Abdel Fattah El Sisi previously said<\/a>.<\/p>\n

<\/a>#2- Electric and hydrogen fuel truck prices need to fall by up to 50% before becoming <\/strong>viable <\/strong>alternatives to diesel<\/strong>, Reuters<\/a> reports, citing a study by consultancy firm McKinsey. The EU\u2019s electric and hydrogen heavy freight vehicle share needs to reach 40% of new sales by 2030 to meet the bloc\u2019s carbon reduction targets, but is currently less than 2%, the study showed. <\/p>\n

Production costs are an obstacle:<\/strong> Emissions-free trucks are currently 2.5-3x more expensive to produce than diesel trucks, which deters logistics firms from deploying them, the study showed. It estimates that electric truck prices should not be more than 30% higher than traditional vehicles, with a sought cut in production costs only achieved through technological developments in batteries. <\/p>\n

But it won\u2019t be easy: <\/strong>Chinese truck makers produce cheaper products and have a 20% share of the bus market in the EU, adding another layer of difficulty to the EU\u2019s carbon reduction goals. <\/p>\n

<\/a>#3- <\/strong>Canada <\/strong>could have more tariffs lined up for China: <\/strong>Canada is considering imposing a surtax on Chinese critical mineral products, batteries, solar products, and semiconductors, according to a statement<\/a> by the country's Finance Ministry. The ministry launched a 30-day public consultation on the potential surtax on Chinese products, citing what it described as \u201cChina\u2019s intentional, state-directed policy of overcapacity.\u201d The plans aim to protect Canadian workers and critical manufacturing supply chains from what Ottawa described as unfair competition by Beijing.<\/p>\n

Background:<\/strong> Canada said last month<\/a> it will impose a 100% tariff on Chinese EVs and a 25% tariff on Chinese steel and aluminum from 1 October, mirroring a similar move<\/a> by the US and the EU. Canadian Prime Minister Justin Trudeau said these measures are intended to protect Canadian industries in response to China's state-directed policy of over-capacity.<\/p>\n

#4- US offshore wind industry backs Harris campaign: <\/strong>The US offshore wind industry showed its support for Democratic presidential nominee Kamala Harris at a fundraiser in Manhattan, highlighting the concern over a possible re-election of Donald Trump hindering the industry\u2019s progress, Bloomberg<\/a> reports. <\/p>\n

Trump has made his plans known: <\/strong>The Republican presidential candidate has already threatened to set his sights on slowing down the sector if re-elected. Trump plans to do this by possibly pausing project approvals and the sale of offshore wind leases to halt progress in the sector. <\/p>\n

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COP WATCH-<\/p>\n

Global South NGOs have snapped up a larger share of attendance badges for COP29 in a <\/strong>bid by the UNFCCC to counter an imbalance in regional representation<\/strong>, Climate Home News<\/a> reported last week. Some Global South campaigners have reported receiving double the badges normally allocated and welcomed the reforms, Global North groups expressed disappointment over the cut to their allocated quotas. The \u201cWestern European and Others Group\u201d were allocated 40% of the total number of observer badges in the initial allocation for COP29 last month, a UNFCCC spokesperson told Climate Home, marking a reduction from allocation rates surpassing the 40% mark for the past 11 editions of the summit.<\/p>\n

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DANGER ZONE- <\/p>\n

Nearly 40% of the most critical areas of the Amazon rainforest to curb climate <\/strong>change remain unprotected, <\/strong>Reuters<\/a> reported yesterday, citing new data by nonprofit Amazon Conservation<\/a>. These areas, primarily located in Peru, Brazil, French Guiana, and Suriname, are home to the densest trees and most continuous canopy cover, which store significant amounts of carbon. <\/p>\n

Only a little over half of carbon areas are protected: <\/strong>Despite the importance of these regions, only 61% of peak carbon regions are designated as protected, the analysis showed, with even lower protection rates of 51% in Brazil, Suriname, and French Guiana. If destroyed, these carbon-rich areas could release large amounts of greenhouse gasses, exacerbating global warming.<\/p>\n

<\/a> <\/p>\n

Headlining the EnterpriseAM Finance Forum: <\/strong>We\u2019ll be joined for the first time on stage by a senior government official, who\u2019s joining us to outline a vision for where we\u2019re going as a community and as an economy. The keynote interview will get underway at 9am sharp, and you won\u2019t want to miss our exclusive networking breakfast from 8am.<\/p>\n

Among the topics on the agenda:<\/strong><\/p>\n