{"id":577236,"date":"2022-11-15T04:00:39","date_gmt":"2022-11-15T04:00:39","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/11\/15\/this-morning-four-days-to-find-an-agreement\/"},"modified":"2022-11-15T04:00:39","modified_gmt":"2022-11-15T04:00:39","slug":"this-morning-four-days-to-find-an-agreement","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/11\/15\/this-morning-four-days-to-find-an-agreement\/","title":{"rendered":"THIS MORNING: Four days to find an agreement"},"content":{"rendered":"

<\/a> Good morning, friends, and happy hump day. There are just four days left of <\/strong>COP27 and it\u2019s looking tense in Sharm<\/strong> as negotiators look for a way to reach an agreement that will cut emissions and mobilize tons of capital for climate finance. COP27 President Sameh Shoukry reiterated yesterday his plea for a \u201cmeaningful\u201d climate agreement<\/a>. \u201cIt is now up to us all here to rise to the occasion and respond to the demands and calls from our communities around the world. We will accept no less than meaningful outcomes at COP27,\u201d he told the summit. \u201cTime is not on our side and the world is watching. Let us come together and deliver now.\u201d<\/p>\n

Are we inching toward an agreement on loss-and-damage? <\/strong>The UN published a draft text (pdf)<\/a> for a potential pact on loss and damage financing, giving us a first glimpse of what a global agreement on climate financing could look like. Reuters<\/a> cautions that the text could change significantly before the end of the summit, and landing an agreement won\u2019t be easy: US climate envoy John Kerry put it bluntly last week, telling the conference that \u201cit\u2019s just not happening.\u201d<\/p>\n

Egypt still has hope:<\/strong> Egypt wants to get all countries on board with a \u201ccover text\u201d by Friday, Shoukry said<\/a> yesterday. This will set out agreed targets and commitments and provide a framework for negotiations to continue at next year\u2019s COP28.<\/p>\n

\u201c\u2018This could be the COP where we lose 1.5\u00b0C,<\/strong>\u201d warned COP26 chief Alok Sharma, as \u201canxiety grows over a push from some countries to weaken the text\u201d particularly as regards loss and damage, the Guardian<\/a> reports.<\/p>\n

** Need to go deeper on what happened yesterday? <\/strong>Enterprise Climate has got your back.<\/a><\/p>\n

HAPPENING TODAY IN SHARM-<\/strong><\/p>\n

It\u2019s <\/strong>Energy Day<\/a><\/strong> at the summit<\/strong>, featuring sessions on renewable energy, energy efficiency, and energy transformation focusing on a just transition in the energy sector. Green hydrogen is expected to step into the spotlight as a potential energy source for the future. High-level officials and energy transition champions will kick off the day with a series of opening remarks setting the stage for the \u201cenergy trilemma\u201d the world is facing.<\/p>\n

Another green hydrogen agreement today?<\/strong> Masdar, Hassan Allam Utilities and Infinity are expected to sign a MoU with the government for a USD 2 bn, 2-GW green hydrogen project at the conference today.<\/p>\n

BACKGROUND-<\/strong> Masdar and HAU announced plans to establish green hydrogen plants in Egypt<\/a>back in April<\/a>. Hassan Allam Holding CEO Amr Allam<\/a>said last month<\/a> that the two companies will invest USD 10 bn in the project, which is expected to produce up to 480k tons of green hydrogen a year.<\/p>\n

That might not be the only one:<\/strong> We can expect more green hydrogen MoUs signed between Egypt and investment partners to materialize into contracts \u201cin the coming hours and days,\u201d Egypt climate czar Mahmoud Mohieldin told Masaa DMC in an interview last night (watch, runtime: 21:23<\/a>).<\/p>\n

HAPPENING TODAY ABROAD-<\/strong><\/p>\n

<\/a> The G20 summit is underway:<\/strong> G20 leaders are in Indonesia for the 2022 G20 summit which is taking place in Bali today and tomorrow. The Financial Times<\/a> is reporting that countries will sign on to a communique today rejecting an \u201cera of war,\u201d though it appears that some members declined to condemn Russia for its invasion of Ukraine.<\/p>\n

The diplomacy started a day early yesterday<\/strong> when US President Joe Biden and Chinese Premier Xi Jinping met for the first time since Biden became president last year. Though the two failed to see eye-to-eye over Taiwan, the reaction in the press is broadly positive, with global media declaring that the meeting has helped to cool tensions between the rivals and lowered fears over a new Cold War. The story is dominating the foreign press this morning: Reuters<\/a> | AP<\/a> | Bloomberg<\/a> | WSJ<\/a> NYT<\/a> | CNBC<\/a>.<\/p>\n

As the summit begins, the IMF is back with more gloomy economic forecasts:<\/strong> In a blog<\/a>post<\/a> yesterday, IMF economist Tryggvi Gudmundsson said the global economic outlook is \u201cgloomier\u201d than even a month ago<\/a>, when it cut its global growth forecast to 2.7% from 2.9%. Economic indicators including PMI readings show a growing number of G20 countries across both advanced and emerging economies slipping into contraction territory \u2014 even as high inflation calls for continued monetary and fiscal tightening, he wrote.<\/p>\n

Wishful thinking? <\/strong>The IMF calls for \u201ccareful policy action and joint multilateral efforts\u201d to help the world move toward \u201cstronger and more inclusive growth\u201d \u2014 in what could be a tall order for the G20 summit, which convenes amid heightened geopolitical tensions between major powers as war continues in Ukraine and China-US relations see strain.<\/p>\n

The good news for the global economy? <\/strong>A US recession isn\u2019t necessarily a foregone conclusion. Morgan Stanley analysts are now forecasting the US economy to dodge a recession next year thanks to a strong jobs market, according to a series of reports picked up by Reuters<\/a>. The EU and the UK? They\u2019re not likely to be so lucky, with the investment bank predicting recessions next year.<\/p>\n

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THE BIG STORIES ABROAD-<\/strong><\/p>\n

KSA\u2019s <\/strong>Public Investment Fund<\/a><\/strong> has signed up as anchor investor for global asset manager <\/strong>BlackRock<\/a><\/strong>\u2019s USD 620 bn (Saudi-focused) MENA infrastructure fund<\/strong>, according to a statement<\/a>. BlackRock will set up a \u201cdedicated infrastructure investment team\u201d in Riyadh if the non-binding MoU becomes reality.<\/p>\n

What does the BlackRock fund like?<\/strong> Energy, power, utilities, water, environment, transportation, telecommunications and social infrastructure. While the fund will invest across the region, Saudi will be its center of gravity.<\/p>\n

WATCH THIS SPACE- <\/strong>Among the things happening internationally this week that you\u2019ll want to keep an eye on:<\/p>\n