Good morning, friends. It’s a brisk read this morning as we enjoy a calm start to the week as we recap US Energy Secretary Jennifer Granholm’s visit to the region and get an update on Acwa Power’s 900 MW Shuaa solar project. There’s also news breaking about a new EV manufacturing facility landing in Abu Dhabi. First, let’s take a quick look at what stories are shaping the conversation abroad…

THE BIG CLIMATE STORY OUTSIDE THE REGION- Microsoft’s emissions rose 30% off of AI expansion: Microsoft’s Scope 3 emissions increased 30% from 2020 levels, hindering the tech giant’s goal to be carbon-negative by 2030, according to Microsoft’s sustainability report (pdf). The rise in emissions is attributed to the company’s rapid expansion in AI, which requires the construction of new data centers that demand large quantities of carbon-intensive materials such as cement, steel, and microchips. Despite Microsoft outlining several strategies to increase energy efficiency and invest in renewables or sustainable aviation fuels, amongst others, it did not consider how it will offset the emissions from the USD 50 bn worth of investments in made from July 2023 and July 2024 in AI tech

The giant software firm is under fire on all fronts: The company’s reliance on renewable energy credits (RECs) — such as its delivery of 3.33 mn tons of permanent negative emissions from its planned bio-CCS facility in Stockholm — to claim clean energy usage has drawn criticism for potentially masking actual emission growth, the news outlet adds. Employees have also voiced concerns over Microsoft’s AI-enhanced oil extraction projects, which they believe undermine the company’s environmental efforts. The story grabbed ink in Bloomberg, The Financial Times, The Wall Street Journal and CNBC.

ALSO- Climate change-driven flooding and heavy rains continue to batter Afghanistan, one of countries most vulnerable to climate change and natural disasters according to the UN. Nearly 100 people have died since Saturday and at least 300 hundred houses were destroyed. Flash floods devastated villages in northern Afghanistan causing 315 fatalities and over 1.6 injuries last week. The story was picked up by Reuters, AP, BBC, and The Guardian.

HAPPENING TODAY-

The Electric Vehicle Innovation Summit will open its doors today in Abu Dhabi and run through to Wednesday. 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. Over in Riyadh, The Future Aviation Forum is kicking off today and will wrap on Wednesday. The event, organized by the General Authority of Civil Aviation, will see the Kingdom showcasing some USD 100 bn worth of investment options in the aviation and logistics sector at large.

COP WATCH-

Irena to monitor global progress on COP28 agreement until 2030: The International Renewable Energy Agency (Irena) has been officially tasked with monitoring progress on the climate goals set out by the global pact — dubbed the UAE Consensus — agreed upon at COP28’s conclusion, according to a press release published last week. Irena will create a dedicated yearly report to monitor progress on and propose strategies for reaching energy targets, and will run from this year to 2030.

REFRESHER- What is the UAE Consensus? The final text of the global pact — which was signed by 198 parties — outlined key actions to shift away from fossil fuels including tripling renewable energy capacity and doubling energy efficiency by 2030, rapidly phasing out coal power, and developing zero-carbon technologies. It set goals to reduce fossil fuel consumption and production, tackling non-CO2 emissions like methane, and transitioning to cleaner transportation options while eliminating inefficient fossil fuel subsidies. While the pact was the first in 28 years to explicitly mention the need to shift away from every type of fossil fuel, many critics were frustrated with the lack of clear commitments for the phase out.

WATCH THIS SPACE-

#1- Negotiations have started for Egypt to access USD 1.2 bn in green financing from the IMF’s Resilience and Sustainability Facility, Egypt’s Environment Ministry said on Saturday, following a meeting between Egypt’s Environment Minister Yasmine Fouad and IMF mission chief for Egypt Ivanna Hollar. The USD 8 bn expanded facility agreement in March paved the way for the country to apply for the additional low-cost climate financing.

Remember: Egypt’s third loan review with the IMF – scheduled for June – will also discuss the climate financing package, Hollar said in April. “To qualify, countries need to have in place a strong set of policies that are intended to address the bases of climate change,” she added.

IN OTHER EGYPT NEWS-Dabaa nuclear plant advances: The first level of the internal containment vessel of the Dabaa reactor building in the first nuclear unit was officially completed, according to a statement released on Friday. The internal containment vessel houses the nuclear reactor and the primary circuit equipment, playing a pivotal role in the operational safety of the nuclear station.

REMEMBER- Final phase of the plant is underway: Egypt kicked off construction on the fourth and final reactor of the 4.8 GW Dabaa nuclear power plant in January. Construction is set to be completed by 2028.

#2- Ukraine’s DTEK is exploring renewables cooperation with Acwa: DTEK — Ukraine’s largest privately-held energy company — is engaged in talks with renewables giant Acwa Power to boost its wind and solar power capacities in addition to upping battery storage activity, CEO Maxim Timchenko told Arab News. The company is in talks “with PIF and other [Saudi] institutions” about investment in cleantech, IT, agriculture, and energy, according to Timchenko.

#3- Qatar to test electric air taxi and delivery planes: Qatar will run its first trial of electric air taxis and delivery planes in early 2025, according to a statement. The country aims to eventually develop a fully integrated mobility ecosystem to enhance its transport sector. The air mobility strategy will use artificial intelligence to increase sustainability, integration, and efficiency.

Qatar is following in the UAE’s footsteps: Chinese electric air mobility company EHang concluded the first demo flight for its pilotless eVTOL aircraft series EH216 in Abu Dhabi earlier this month as part of a partnership signed in December for EHang to roll out its autonomous eVTOL aircraft in the UAE. The Chinese firm intends to sell its vehicles to be used as an air taxi service for city public transportation systems, as well as sightseeing flights for tourists.

#4- Jera to invest USD 32 bn in energy and renewables: Japanese power giant Jera is planning to invest USD 32 bn in energy including adding 15 GW of renewable energy and 7 mn tons of hydrogen and ammonia, Reuters reported on Thursday. The company also plans to reduce CO2 emissions by at least 60% from 2013 levels, phase out inefficient coal-fired power plants by 2030, and convert remaining coal-fired power generation to ammonia by the 2040s.

Jera’s heavily investing in regional projects: Jera signed agreements with Taqa and Adnoc last year to investigate the feasibility of low-carbon thermal energy, ammonia, and green hydrogen projects in the region. The Japanese company also collaborated with Saudi Arabia’s sovereign wealth fund the Public Investment Fund, to explore the production of green hydrogen and its derivatives. It also plans to invest in low-carbon hydrogen and ammonia plants in the region to produce around 1 mn annual tons of blue ammonia, alongside smaller-scale green hydrogen projects.

#5- TotalEnergies is eyeing renewables projects in KSA: French energy giant TotalEnergies is in discussions with Saudi Arabia’s Acwa Power to expand its renewable energy portfolio in the kingdom, TotalEnergies’ CEO Patrick Pouyanne told Asharq Business on the sidelines of the Qatar Economic Forum last week. TotalEnergies’ Middle East strategy aims to invest in projects that mix gas and renewable energy, which the company is currently implementing in Oman and Iraq, Pouyanne added. TotalEnergies and Oman’s OQ Alternative Energy announced plans to develop a joint renewable energy portfolio with a total capacity of up to 800 MW last month.

Total is already active in the region: The company partnered with Oman’s Nama Power and Water Procurement Company to build a 17 MW solar project to power its Sur desalination plant under a JV with France’s Veolia. TotalEnergies is also set to begin operating the first phase of its solar power project in Iraq “within the next year.” The company is also among the backers of Xlinks’s Morocco-UK interconnector project.

#6- Morocco has plans to add 6.5 GW of renewable energy to the country’s 11 GW total installed energy capacity by 2027, Reuters reported last week, citing comments made by Energy Minister Leila Benali last week on the sidelines of a conference on batteries in Rabat. The country plans to add 2.5 GW of non-renewable power in the same period, which together with the renewables projects will cost the government USD 7 bn in investments. Currently, renewables makeup 4.5 GW (37.6%) of Morocco’s total electricity capacity, with the nation quickly approaching its goal to have renewables represent 52% of its energy mix by 2050.

#7- US opens probe into Asia solar imports: The US Commerce Department has launched an investigation into dumping and unfair subsidization allegations against South East Asian solar cell and panel imports, specifically from Cambodia, Malaysia, Thailand, and Vietnam, Bloomberg reported last week. The probe comes one month after seven US solar equipment companies filed petitions to counteract “unfair practices” by overseas rivals.

The details: The US firms request that tariffs — which they suggest should reach as high as 271.5% later this year — be imposed on USD 12.5 bn worth of imported equipment from South East Asian firms, Bloomberg wrote. The results of the investigation will determine whether importers will have to hold bns in cash deposits or reserves on their product to pay potential tariffs. The duties could be enforced in as little as four months.

Not everyone’s on board: US solar producers may be seeking profit rather than protection of the domestic solar industry, CEO of Invenergy Michael Polsky said, Bloomberg reported last week. The US solar manufacturers would directly benefit from tariffs imposed on Southeast Asian solar imports, Polsku stated, adding that US firm First Solar’s shares spiked almost 5% with news of the waiver’s near end. Rather than protecting US manufacturing, the tariffs will create conditions where “they can sell their solar products at the highest price,” he stressed.

ALSO- Is Biden making a U-turn to protect local industries? US President Joe Biden is planning to end a two-year tariff waiver on the solar panels made by Chinese companies in Malaysia, Cambodia, Thailand and Vietnam, and on imported double-sided solar panels imported from China, Reuters reported on Thursday. Biden also plans to introduce tax credits for projects that have 40% of its equipment manufactured in the US.

DANGER ZONE-

Climate change is coming for your mental health: Rising temperatures and climate disasters can cause neurological diseases and mental health disorders to become more prevalent and come with more severe symptoms, Bloomberg reported last week, citing a study published by the University College London (UCL) in the neurology journal The Lancet. The analysis also revealed that environmental factors can increase the associated risk of hospital admission, disability, and death. This is because “if the brain has a disease, then the brain’s ability to thermoregulate is compromised,” the lead researcher explained, adding that “the brain has to be maintained within a relatively narrow temperature range in order to work properly.” The scientists looked at cases of Alzheimer, epilepsy, anxiety, PTSD, depression, suicidal thoughts, and mental health related hospitalization in the study.

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CIRCLE YOUR CALENDAR-

The UAE will host the Bonds, Loans & Sukuk Middle East event from Tuesday, 4 June to Wednesday, 5 June in Dubai. Billed as the Middle East’s largest corporate and investment banking event, it serves as a key meeting point for those active in the region’s capital markets. Over 1.4k governments, corporates, investors, banks, law firms, regulators and service providers as well as more than 75 expert speakers will be in attendance.

Turkey will host the International Conference on European Energy Market, from Monday, 10 June to Wednesday, 12 June in Istanbul. The three-day event will gather experts from scientific, industry, and policy sectors for discussions on various energy market-related topics. The conference covers themes including energy modeling, market design, regulatory policies, and climate change.

Morocco will host the Morocco Energy Week Summit, from Tuesday, 11 June to Thursday, 12 June in Marrakech. The event will gather Morocco’s leading energy players, companies and developers alongside financiers and implementation experts to discuss the country’s green transition.

Spain will host the Connecting Green Hydrogen Europe conference, from Tuesday, 25 June to Thursday, 27 June in Madrid. The event will see around 5k attendees including industry leaders, energy ministers, and executives to explore solutions, new technologies, and transformative advancements to advance the hydrogen industry.

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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