{"id":86726,"date":"2024-09-16T00:00:00","date_gmt":"2024-09-16T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/climate\/2024\/09\/16\/today-a-big-weekend-for-renewables-in-egypt-ocp-secures-a-loan-to-shore-up-water-scarcity-in-morocco\/"},"modified":"2024-09-16T00:00:00","modified_gmt":"2024-09-16T00:00:00","slug":"today-a-big-weekend-for-renewables-in-egypt-ocp-secures-a-loan-to-shore-up-water-scarcity-in-morocco","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/climate\/2024\/09\/16\/today-a-big-weekend-for-renewables-in-egypt-ocp-secures-a-loan-to-shore-up-water-scarcity-in-morocco\/","title":{"rendered":"TODAY: A big weekend for renewables in Egypt + OCP secures a loan to shore up water scarcity in Morocco"},"content":{"rendered":"

Good morning, folks. <\/strong>It\u2019s a big news day for Egypt as the signing pen was busy over the weekend, inking agreements with Scatec, Amea and Orascom. There\u2019s also a fair bit of news coming from Morocco this morning in terms of loans and legislation, but first, the latest on US and EU China tariffs\u2026<\/p>\n

THE BIG CLIMATE STORY OUTSIDE THE REGION- US confirms tariffs on Chinese imports: <\/strong>The US has confirmed that steep tariff hikes on Chinese imports, including a 100% duty on EVs, will go into effect on 27 September. Despite industry complaints the move could disrupt supply chains, US officials argue that these \"tough, targeted\" measures will reduce reliance on Chinese supplies and counter China's market dominance. The tariffs will target key renewable energy components including solar cells, semiconductors, and EV batteries in a bid to protect domestic US industry from China's imports propped up by state subsidies. The action also maintains Trump-era tariffs on USD 300 bn worth of Chinese goods, while offering temporary relief for US port operators and medical suppliers.<\/p>\n

ICYMI- <\/strong>The Biden administration has postponed<\/a> its final decision on imposing the tariffs multiple times, citing a statement from the US Trade Representative\u2019s Office (USTR). The tariffs were initially set to take effect on 1 August.<\/p>\n

The story made headlines in the international press:<\/strong> Reuters<\/a> | The New York Times<\/a> | Bloomberg<\/a> | CNN<\/a> <\/p>\n

ON A RELATED NOTE- The EU rejects Chinese EV price adjustments, tariffs likely to increase: <\/strong>The European Commission has rejected price adjustment offers from Chinese EV makers aimed at avoiding increased tariffs, following a probe into Beijing's subsidies, Reuters<\/a> reported on Thursday. The tariffs, which could go up to 50%, are intended to protect European manufacturers from being undercut by low-cost, Chinese EVs. EU member states will vote on the tariffs by the end of October.<\/p>\n

China slammed the decision:<\/strong> Despite signs of division within the EU, China has condemned the tariffs as protectionist and hinted at potential retaliatory trade measures, the Financial Times<\/a> writes. Negotiations are expected during upcoming talks between Beijing and Brussels this week.<\/p>\n

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WATCH THIS SPACE-<\/p>\n

<\/a>#1- BYD\u2019s planned <\/strong>USD 1 bn EV plant in Turkey<\/a><\/strong> is progressing as planned despite China\u2019s <\/strong>warnings to its companies against foreign car production investments<\/strong>, sources familiar with the matter told Reuters<\/a> last week. Talks of further Chinese investments are still taking place, the sources added. However, carmakers looking to invest in Turkey will have to first notify the Ministry of Industry and Information Technology, Bloomberg<\/a> reported on Thursday. <\/p>\n

China is worried about global expansion: <\/strong>Chinese EV makers have been building factories in countries where they can evade the EU\u2019s recently imposed tariffs on its product and slowing demand in the domestic market, but China\u2019s commerce ministry has warned its automakers against such investments in India, Russia, Turkey, Europe, and Thailand, the newswire reported. The ministry also warned the producers to keep advanced EV technology in China and export knock-down kits \u2014 key parts of the vehicle domestically \u2014 to then be assembled to their foreign plants, Bloomberg added. <\/p>\n

Carmakers are still moving full steam ahead: <\/strong>Chery is in talks with Russian producers to manufacture cars in their plants, Geely is looking for locations in Europe to construct a plant but has not yet settled on local production, and Leapmotor is considering partnering with local firms after already forming a JV with Stellantis for EV production in Poland, Reuters reported. <\/p>\n

#2- Kazakhstan looks to boost EV minerals output: <\/strong>Kazakhstan has issued hundreds of critical metal exploration licenses in hopes of attracting foreign investment to boost the country\u2019s exports of critical materials including lithium, cobalt, manganese, nickel, and graphite, Reuters<\/a> reported on Friday. 487 licenses have been issued this year so far in comparison to 397 throughout all of 2023. The country has already signed supply agreements with the EU and UK, as China limits the export of rare earth supplies and Russia threatens to do the same.<\/p>\n

Kazakhstan has the resources: <\/strong>The country has deposits of 90% of the elements and is already a major exporter of ferro alloys, gold, copper, uranium, and titanium. Kazakhstan mines manganese as well and wants to gain 10% of the global market. The country also has 2% of the world\u2019s nickel reserves, but its market share remains low.<\/p>\n

<\/a>#3- EU car lobby proposes delay of emissions targets: <\/strong>The EU car industry lobby is urging the government to use emergency regulation to delay the emissions target set for automakers to comply by 2025, Bloomberg<\/a> reported on Thursday, citing a draft proposition it has seen from European Automobile Manufacturers\u2019 Association (ACEA). <\/p>\n

The rationale:<\/strong> In order to meet the target of limiting the CO2 fleet emission of about 95 grams of CO2 per kilometer per vehicle, carmakers would have to either halt the production of 2 mn cars or be fined up to EUR 13 bn for producing passenger cars and EUR 3 bn for producing vans, the ACEA said in the proposition. The EU car sector can\u2019t meet the target due to \u201clow consumer demand for EVs and unfair competition from third country EV manufacturers,\u201d the group says. To meet the emissions target, EVs would need to account for 20-22% of all sales, but the percentage is stuck at under 15% for cars and even less for vans, the proposition added.<\/p>\n

ACEA (unofficially) backs the proposition: <\/strong>A spokesperson clarified the document wasn\u2019t \u201can ACEA paper,\u201d and has yet to take a formal stance but pointed out on its website that, \u201cThe EU automotive industry has invested EUR bns in electrification to put vehicles on the market, but the other necessary ingredients for this transition are not in place and the competitiveness of the EU is eroding.\u201d <\/p>\n

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COP WATCH-<\/p>\n

<\/a>COP29 host pushes for global energy storage expansion by 2030: <\/strong>Azerbaijan plans to pitch a Global Green Energy Storage Pledge to over 190 countries, aiming to increase global energy-storage capacity sixfold by 2030, Bloomberg<\/a> reported on Saturday, citing a draft proposal it has seen. The initiative aligns with the G7\u2019s agreement to reach a target of 1.5 TW<\/a> of energy storage capacity by 2030, which the group signed in April (pdf)<\/a>. <\/p>\n

In numbers: <\/strong>Countries around the world would need to boost their energy storage capacities by 158 GW annually through to 2030 in order to reach the proposed target, Bloomberg writes.<\/p>\n

IN OTHER NEWS- A new UN report sets the stage for tough COP29 talks: <\/strong>Developing countries need nearly USD 500 bn in financing annually to reach climate goals with as much as USD 6.9 tn needed by 2030, Bloomberg<\/a> reported on Friday, citing a new report by the UN Standing Committee on Finance. <\/p>\n

We can expect intense negotiations in Baku:<\/strong> The report criticizes rich nations for missing their 2020 USD 100 bn per year goal, met two years late<\/a>. Discussions at COP29 will address the need for substantial public and private sector funding and focus on establishing a post-2025 climate finance target. There is also pressure for higher funding than the UN estimates, with calls for up to USD 1 tn in public finance alone.<\/p>\n

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THE SCORECARD-<\/p>\n

The UAE's clean energy share of the total energy mix hit 27.83<\/strong>% in 2023<\/strong>, moving closer to its 2030 target of 32%, Wam<\/a> reports. The Emirates\u2019 renewable energy capacity also grew by 70% in 2023, reaching 6.1 GW. As of 2023, the country has invested over AED 45 bn in completed renewable energy projects so far, according to Energy Minister Suhail bin Mohammed Al Mazrouei.<\/p>\n

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HAPPENING THIS WEEK-<\/p>\n

#1- The <\/strong>World Utilities Congress<\/a><\/strong> will open its doors today in Abu Dhabi and run through to Wednesday.<\/strong> The event will gather global energy leaders, policymakers, and other industry professionals from the power and water utilities value chain to discuss industry trends and challenges.<\/p>\n

#2- The <\/strong>Arab Water Forum<\/a><\/strong> is starting in Abu Dhabi today and running through to Wednesday<\/strong>. <\/strong>The event will feature over 60 exhibitors from 24 countries, along with roundtables and speaker sessions, gathering water sector leaders to discuss solutions for clean water and sanitation, with an emphasis on innovation and improving water security. <\/p>\n

#3- Saudi\u2019s <\/strong>EV Auto Show<\/a><\/strong> is kicking off tomorrow in Riyadh and running <\/strong>through t<\/strong>o Thursday<\/strong>.<\/strong> The show offers a platform for participants to learn about the latest EV technologies and services.<\/p>\n

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THE FINANCE FORUM-<\/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>, which you can view here<\/a>:<\/p>\n