Good morning, nice people. We have a fairly meaty issue as the first weekend in Ramadan inches ever closer, but first a message from COP29’s new president…

COP WATCH-

As governments around the world prepare for elections, new leaders will be held to the same obligations as their predecessors,COP29’s incoming president Mukhtar Babayev told The Guardian. Regardless of the results of elections this year — which are taking place in big world economies such as the UK, the EU and the US to India and Russia — the new administrations formed will be faced with the same pressures to reduce greenhouse gas emissions and tackle climate change, Babayev told the Guardian, adding that his presidency will hold countries to their commitments.

WATCH THIS SPACE-

#1- Xlinks Morocco-UK interconnection may be looking at a German expansion: UK-based renewables developer Xlinks — which is working on an interconnection project to transport 3.6 GW of renewable energy from Morocco to the UK — is considering extending the network to Germany as well, Bloomberg reports, citing planning documents published on the website of Europe’s transmission system operators.

Decisions, decisions: Xlinks is yet to decide whether to integrate Germany’s electricity network into the project, stick with the original plan of solely a UK connection, or scrap the plan altogether and connect only to Germany, according to Chief Executive Simon Morrish, who hinted that the latter option is the least likely so far. While a German link would likely be in addition to the UK route, the possibility of losing out on the deal may put pressure on UK authorities to provide backing for the project, Bloomberg writes. More details will be revealed in the coming weeks, Morrish said.

About the project: Backed by the Abu Dhabi National Energy Company (Taqa) and TotalEnergies, the interconnection projects will comprise a 3.8k km high-voltage direct current (HVDC) subsea cable transporting 3.6 GW of renewable energy — nearly 8% of the UK’s current requirements — from a 10.5 GW solar and wind farm in Morocco’s Guelmim-Oued Noun region to Britain’s power grid in Devon. It will also include a 20 MW battery storage system. Xlinks was scheduled to begin construction on its interconnection project last April.

#2- Tunisia approves plan aimed at improving energy + water management: Tunisia’s cabinet approved a draft law for the implementation of its 2023-2025 development plan, which sets out to strengthen the development of the country’s economic, social and environmental branches, with a focus on controlling inflation and better managing its water and energy resources, TAP reports. The 3-year plan covers the full range of horizontal, sectoral and regional policies, the news outlet added.

The North African country is also moving forward with agricultural reform: The cabinet also approved the creation of a unit to manage and implement the integrated agricultural development project in the south of Kasserine governorate, TAP reports. The unit will work on improving agricultural production and preserving natural resources through managing water supplies, improving infrastructure, valorising local agricultural products, growing alfa plantations and forests, and combating desertification.

REMEMBER- Tunisia is looking for ways to overcome its climate driven water-woes:Months of drought and intense heat waves in Tunisia over the last years led the North African country to call for the establishment of a joint program to alleviate the impact of climate change on economic development. The World Bank forecasts 71% of climate-related GDP losses in Tunisia by 2050 will be attributable to water shortages, noting inaction to shore up water supplies and step up its flooding and coastal protections could drop the country’s GDP up to 3.4% — translating to USD 1.8 bn annually — by 2030.

#3- The lithium business is back on track: Global lithium producers are seeing signs of recovery after its market experienced a significant downturn last year as a result of oversupply, Bloomberg reports.Lithium prices have hit their highest levels In China since December 2023 following a 80% drop, while contracts on the Guangzhou Futures Exchange have also surged by over 20%. American producer Albemarle and Chile’s SQM have remained positive that low prices will not last forever and are thus pushing through with their expansions.

Not everyone is convinced: Goldman Sachs and analysts at BloombergNEF remain cautious about the rebound, with Goldman Sachs warning that the surplus in supply (which was causing the low prices) is still significant, Bloomberg writes. BloombergNEF suggests that the recent price gains may be short-lived, driven by immediate impacts of the environmental crackdown in China rather than sustained demand. Swiss investment bank UBS Group AG warns that although the lithium market is rebalancing — as industry curtails production and projects — this “could be transitory if price sentiment lifts too far, too fast.”

DANGER ZONE-

OPEC and IEA gap in predicted oil demand reaches all-time high: The world’s biggest oil producing organization OPEC and the International Energy Agency (IEA) are failing to see eye-to-eye on this year’s predicted oil demand, Reuters reports. The IEA predicted last month that demand will rise by 1.22 mn barrels per day (bpd) in 2024, while in OPEC’s report they expected oil demand to increase by 2.25 mn bpd in the same period — an almost 1 mn bpd difference equivalent to 1% of world demand. This marks the biggest gap in forecasts between the two groups in the 16 years they have been publishing monthly reports, Reuters’ analysis found. “The IEA has a very strong perception that the energy transition will move ahead at a much faster pace,” former head of the IEA’s Oil Markets Division Neil Atkinson.

The OPEC vs. IEA rivalry has long been intensifying: On the run-up to COP, OPEC Secretary General Haitham Al Ghais accused the IEA of vilifying the oil industry by saying it has to choose between shifting to clean energy or worsening the climate crisis. OPEC — de facto led by top oil exporter Saudi Arabia — also described the IEA’s prediction that world fossil fuel demand would peak by 2030 as “dangerous,” saying that this jeopardizes energy security since it leads to calls to stop new investments in oil and gas.

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CIRCLE YOUR CALENDAR-

The UAE will host the World Future Energy Summit from Tuesday, 16 April to Thursday, 18 April in Abu Dhabi. The summit will address solutions for development in the transformation of future energy systems. The summit will also feature discussions on recycling, waste-to-energy, and air-to-water trends and progressions.

The UAE will host the Connecting Green Hydrogen MENA event from Tuesday, 23 April to Thursday, 25 April in Dubai. The event will explore green hydrogen partnerships, policies, and practices in the region, in parallel to a showcasing of the latest in the clean fuel’s technology.

Oman will host the Oman Sustainability Week from Sunday, 28 April to Thursday, 2 May in Muscat. The event will focus on exploring investment opportunities and implementing best practices in sustainability within the energy, water, and environmental sectors.

The UAE will host The Electric Vehicle Innovation Summit from Monday, 20 May to Wednesday, 22 May in Abu Dhabi. The event will see industry leaders come together to discuss sustainable mobility and tapping into groundbreaking advancements in electric vehicles while engaging with key decision-makers.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

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