The IFC partners with AP Moller on climate finance:The International Finance Corporation (IFC) is investing USD 50 mn in Danish shipping company AP Moller’s Emerging Markets Infrastructure Fund II, according to a statement released earlier this week. The loan aims to help AP Moller tackle infrastructure gaps, facilitate trade, and boost access to renewable energy in Asia and Africa. The Danish fund aims to raise USD 1 bn in green financing.

Where’s the money going: 60% of the USD 1 bn funding package is planned for onshore transport projects spanning from ports and storage, roads and rail, to warehouses and distribution ventures, while the remaining 40% of the financing strategy will be set aside for renewable energy and electricity distribution projects. Half of the fund is packaged towards development projects in Africa, with the remainder earmarked for the South and South East Asian Markets.

Why the focus on greenifying transport and port operations? The IFC notes the global shipping sector contributed to around 25% of global energy-related greenhouse gas output in 2022, the IFC notes. In our neck of the woods, a US-backed plan to establish an economic corridor linking Europe with the Middle East and India via a green rail and sea corridors is in the works. Regional players including KSA are separately running trials for hydrogen-powered railway networks in a bid to cut emissions from the transport sector. On the port operation front, UAE-based DP World signed an agreement with the International Renewable Energy Agency (Irena) last month to collaborate on scaling up the use of renewable-based fuels and electrifying the shipping and ports sectors.

Ryanair dominates the market:Irish budget airline Ryanair is now the world’s largest airline by market capitalization, which is valued at USD 29.6 bn, according to Companies Market Cap. Ryanair’s revenues increased by 30% y-o-y in 2023, generating USD 7.2 bn, SimpleFlying reports. Increased revenues are attributed to new routes, a growing fleet, and higher fares among other factors. The airline's average fare increased by 24% y-o-y to USD 63 and there has been an 11% y-o-y increase in traffic to 105 mn passengers and flights were operating at 95% capacity in 2023. Ryanair surpassed its competitors Delta (valued at USD 27.3 bn) and Southwest (valued at USD 17.7 bn).

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

  • The UK introduces new levies on goods from 2027: The UK will implement a new import carbon pricing mechanism effective 2027. Goods imported from countries with low or no carbon prices will have to pay a levy. This will apply to carbon intensive products in the iron, steel, aluminum, fertilizer, hydrogen, ceramics, glass, and cement sectors. (Reuters)
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