TODAY: Indonesia 💚Nasdaq Dubai + Beijing courts PIF investments

Good morning, friends. It’s a brisk issue as we head off into the weekend, with some big green sukuk news emerging from UAE and a few investment and financing updates from Saudi. First, let’s check in on the latest from the China-EU trade skirmish…

THE BIG CLIMATE STORY OUTSIDE THE REGION- China launches tit-for-tat trade probe: China’s Commerce Ministry has launched a formal trade and investment barrier investigation into the EU’s anti-subsidy probe of Chinese companies to evaluate whether they constitute a trade barrier. China is accusing the EU of protectionism and “reckless distortion,” and will probe sectors including rail, solar, and wind power. The investigation will run until 10 January, possibly extending for three months beyond that.

REMEMBER- The EU has been putting pressure on Chinese imports: The EU launched a probe last year into Chinese subsidies for EVs in efforts to ward off a flood of cheap imports, claiming prices were being kept “artificially low.” The EU also recently officially imposed tariffs of 17.4% to 37.6% on Chinese electric vehicle imports. Tariffs are on provisional status for the next four months before becoming “definite” as the talks between both sides continue and the EU anti-subsidy investigation continues.

The story made headlines in the international press: Reuters | AP | Bloomberg | CNN | Deutsche Welle

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WATCH THIS SPACE-

#1- Tunisia reviews AfDB water resilience loan: The Tunisian Assembly of People’s Representatives is reviewing a bill to approve the EUR 81.9 mn loan and guarantee agreement between Tunisia and the African Development Bank (AfDB) for a wastewater treatment project, Tap reports. The loan — which will be awarded to the National Sanitation Board — will improve sanitation services across ten governorates by updating equipment and installing solar panels and generate treated water for agricultural use.

This has been in the works: AfDB signed off on the loan and guarantee agreements to help finance Tunisia’s Treated Wastewater Quality Improvement Project For Climate Resilience Building in January. The project — which will be implemented from 2024 to 2028 — involves upgrading Tunisia’s electromechanical and electrical equipment by introducing 13 solar farms with a combined 6 MW capacity to power 19 wastewater treatment capacity across 11 governorates in the country.

#2- Beijing is urging the Public Investment Fund to expand green investments in China, Reuters reports, citing China’s official Beijing Daily newspaper. China is looking to convince the PIF to increase its business activities in the Chinese capital, especially in the industrial investment, green development, and energy transition sectors, Beijing’s Mayor Yin Yong told PIF boss Yasir Al Rumayyan. The PIF governor said that Riyadh is interested in an ongoing collaboration with Beijing, particularly in sustainable development and renewable energy.

This comes as part of China’s diversification strategy: This appeal is part of Beijing’s broader diplomatic strategy to enhance ties with countries in Europe, the Middle East, and Africa as a countermeasure to what China perceives as the US’ weaponization of economic policies, the news outlet added.

PIF has been active in China: The sovereign wealth fund has been eyeing a USD 250 mn stake in Chinese electric car manufacturer Human Horizons since last November. The fund also signed a Joint Development Agreement with Chinese solar PV manufacturer LONGi Green Energy Technology back in January 2023.

IN OTHER SAUDI NEWS- Long awaited eVTOLs are coming: Flagship carrier Saudia is reportedly close to formalizing a framework agreement with Germany-based air taxi developer Lilium to purchase some 100 electric jets, Reuters reports, citing a source with knowledge of the matter. Lilium plans to announce the order by Saudia at its headquarters near Munich on Thursday, 18 July. The framework agreement was signed in October 2022.

#3- Public markets are undervaluing clean energy companies which hampers the green transition, CEO of Abu Dhabi Investment Authority-backed ReNew Energy Global Sumant Sinha told The Financial Times. Clean energy companies are not being rewarded for their growth and scale, with new equity raised in public markets dropping from USD 68 bn in 2022 to USD 33 bn in 2023, FT writes. Clean energy stocks have fallen 28% since last year, the news outlet added, citing the S&P Global Clean Energy Index. Concerns over high interest rates in the US have contributed to a sell-off in clean energy stocks, prompting ReNew Energy to consider moving its listing from Nasdaq.

ReNew has regional ties: ReNew Energy — formerly called ReNew Power — has been exploring investments in green hydrogen projects in Egypt. The company plans on diversifying its operations to the Middle East, North Africa, India and Australia, and investing in countries rich in natural resources, with a proximity to global markets, and a competitive price for land.

With some projects currently in the works: ReNew is already scheduled to break ground on its USD 8 bn green hydrogen plant in Egypt’s Suez Canal Economic Zone this year. This comes after El Sewedy Electric and ReNew signed a framework agreement with the government to generate 570 MW of renewables to be used for the production of 20k tons of green hydrogen during its pilot phase. The green hydrogen will be used as feedstock to generate 100k tons of green ammonia.

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CIRCLE YOUR CALENDAR-

Egypt will host the Egypt Mining Forum from Tuesday, 16 July to Wednesday, 17 July in Cairo. The event will convene decision-makers from government, industry experts, new exploration firms, financiers, and investors to explore the challenges and advantages to establish Egypt as a leading global mining hub by 2040.

The UAE will host the World ESG Summit from Tuesday, 20 August to Wednesday, 21 August in Dubai. The summit will gather experts and industry leaders to explore new ways to integrate Environmental, Social, and Governance (ESG) principles into business practices.

Turkey will host the International Conference on Clean and Green Energy Engineering from Saturday, 24 August to Monday, 26 August in Izmir. The event will gather researchers and professionals to share advances in clean energy. It will also offer a platform to discuss the latest research, practices, and applications in clean and green energy engineering.

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