TODAY: More European M&A for Masdar + 2Q earnings trickle in

Good morning, folks. It’s a fairly busy morning as Masdar continues it’s M&A shopping spree in Europe and earnings continue to roll in for 2Q. But first…

Are you planning to be in Egypt on 24 September? You may be interested in attending our 2024 Enterprise Finance Forum. Seating is strictly limited at our flagship, invitation-only forum for C-suite executives and other senior leaders.

Why attend? We’re in the early days of a generational realignment of power in our industry — in our region and beyond — and on the cusp of the biggest intergenerational transfer of wealth the world has ever seen. With that as the backdrop, we’re going to take stock of where we stand six months after the float of the EGP and ask what’s next for finance in Egypt and the wider region. Among the questions we’ll be asking:

• What roles will Egypt, Saudi and the UAE play in the regional industry going forward?
• What are foreign investors looking for right now?
• Is real estate the only asset class in Egypt?
• What does the next generation of leaders think as they take over established family businesses?

Do you want to request an invitation? Tap or click the image below.

THE BIG CLIMATE STORY OUTSIDE THE REGION- Climate activists caused major disruption at German airports over the weekend: Around 140 flights were canceled on Thursday after climate activists from climate protest group Letzte Generation blocked Frankfurt airport runways to protest fossil fuels. The disruption at Germany’s busiest airport lasted two hours but delays were made for the remainder of the day before flights were resumed later. About 30 flights were canceled at Cologne-Bonn airport for the same reason a day earlier.

That wasn’t the only attempt for airport activism: Authorities foiled similar attempts at other European airports, including London, Vienna, Oslo and Zurich.The activists said such blockades were just the start of a wide campaign to end fossil fuels by 2030 with similar actions planned across Europe and North America in the coming weeks.

The story grabbed a lot of ink in the int’l press over the weekend: Reuters | AP | Financial Times | CNN | The Guardian | BBC | CBS

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COP WATCH-

Brazil endorses COP28 climate finance framework: Brazil — the current G20 Presidency and official COP30 host next year— has thrown its support behind the UAE Declaration of Leaders on a Global Climate Finance Framework launched at COP28 to make sustainable finance “more available, accessible and affordable,” according to a statement released last week. 15 countries have already joined the framework as signatories including six G20 members — France, Germany, UK, US, India, and now Brazil, the statement notes.

Yellen’s on the same page: US Treasury Secretary Janet Yellen called the world’s fight against climate change “the single greatest economic opportunity of the 21st century,” Bloomberg reported on Saturday. The USD 3 tn of annual climate investment needed by 2050 “can be leveraged to support pathways to sustainable and inclusive growth, including for countries that have historically received less investment,” she said during a visit to Brazil’s Amazon region. Yellen also unveiled a program that aims to break up financing of criminal activity causing environmental or wildlife damage in the vulnerable area.

China also wants more from wealthy nations to accelerate climate financing: China, along with other developing countries, urged the world’s largest countries to raise climate financing to tns of USD per year to emerging markets most vulnerable to climate change, according to a statement by China’s Ecology and Environment Ministry. The statement — backed by Brazil, South Africa, and India — was released after ministers from the four countries met in Wuhan for talks over the weekend.

In context- A goal set in 2009 to finance USD 100 bn per year by 2020 to developing nations was only achieved once in 2022, Bloomberg reported on Thursday, citing data from the Organization for Economic Co-operation and Development.

ALSO- COP28 and COP29 have begun climate finance discussions: COP28 and COP29 have begun discussing how to implement the Climate, Relief, Recovery, and Peace Declaration with input from the African Union, Green Climate Fund, World Food Programme, and World Bank, the COP28 presidency said on X. The declaration aims to “increase climate finance and action in fragile and highly vulnerable countries.”

WATCH THIS SPACE-

#1- Turkey will launch a USD 5 bn package to raise its electric vehicle production to one mn vehicles annually, Reuters reported on Friday, citing statements by Turkish President Recep Tayyip Erdogan. The investment further paves the way of raising the country’s profile as an EV manufacturing hub, short weeks after Chinese EV maker BYD inked an agreement to build a USD 1 bn EV and hybrid production plant in the country.

And that’s not all: Turkey is planning a separate USD 30 bn incentives package for high tech areas, Erdogan said. These will include USD 5 bn to build a semiconductor chip factory supported by a USD 4.5 bn incentive package to increase battery capacity to 80 GWh by 2030, a USD 2.5 bn grant for solar facilities of up to 15 GW, and USD 1.7 bn for the manufacture of wind energy components, he added.

The country has big regional aspirations: Turkey wants to attract investment from EV makers to become a key EV player in the region, and hopes to to become a regional battery production base. The country is aiming to attract over USD 20 bn in private sector investment with such incentives offered, the Turkish president said.

#2- Ewec launches tender for battery storage project: Emirates Water and Electricity Company (Ewec) has issued a request for proposals (RFP) for eligible developers to submit their bids to develop, finance, operate, and maintain a 400 MW greenfield battery storage system power project in Abu Dhabi, according to a statement released on Thursday. The RFP is open to the 27 bidding firms and consortiums that passed Ewec’s expression of interest stage last April, with bids due by 4Q 2024.

The details: The project will provide 800 MWh of storage capacity, and will offer ancillary services, including frequency response and voltage regulation. The project is set to boost the emirate’s solar photovoltaic (PV) capacity to 7.5 GW by 2030 and reduce carbon intensity to an estimated 190 kg/MWh by 2030, down from 330 kg/MWh in 2019.

#3- Saudi Arabia kicks off second phase of Sedrah accelerator in the US: Saudi Deputy Environment Minister Mansour Al Mushaiti inaugurated the second phase of the ministry’s Sedrah Business Acceleration Program in California’s Silicon Valley, SPA reported on Thursday. The accelerator, launched earlier this year, provides mentoring for startups operating in the environmental sector in Riyadh, London, and Silicon Valley.

#4- Egypt’s voluntary carbon market (VCM) — Africa’s first VCM — is ready for its first transactions, according to a statement (pdf) published last week. The EGX has developed a comprehensive framework for the trading, settlement, and transparency of carbon certificates, utilizing advanced systems provided by its fully-owned subsidiary Egyptian Company for Information Dissemination (EGID). The market will serve as a platform for the trading of carbon certificates for African countries, according to the statement.

What’s next: The upcoming period will see educational initiatives and discussions with listed companies to encourage the issuance of carbon certificates, further integrating sustainability into Egypt’s financial markets.

This has been in the works: Egypt’s Financial Regulatory Authority unveiled requirements earlier this month for carbon trading. It also issued the registration and delisting rules for companies looking to sell certified carbon credits on the EGX in May.

#5- Italy eyes a new era of ties with China in its first official visit: An industrial cooperation memorandum including electric mobility and renewables was inked between Rome and Beijing as Italian Prime Minister Giorgia Meloni seeks “to relaunch bilateral cooperation” between the two countries, Reuters reports. Meloni said her five-day trip — her first to China since she assumed office as PM in 2022 — was a “demonstration of the will to begin a new phase, to relaunch our bilateral cooperation”. Other framework agreements include environment, food safety, education and others.

Rome and Beijing have had their share of trade issues: Italy was the only G7 country to join China’s Belt and Road Initiative in 2019 but withdrew last year due to US pressure. It also supported the EU’s decision to impose additional tariffs on Chinese EVs, pledging to protect its domestic businesses from unfair Chinese trade practices. Chinese state media therefore called Meloni’s trip an attempt at “clarifying some misunderstandings,” according to Reuters.

DANGER ZONE-

UN Secretary-General Antonio Guterres has called for urgent global action to address the global crisis of extreme heat, after the world registered its three hottest days on record earlier this month, according to a statement last week. Guterres emphasized the need for comprehensive Heat Action Plans (pdf) and a significant acceleration of climate action to limit global temperature rise to 1.5C. He urged governments, especially G20 countries, to phase out fossil fuels and shift subsidies to renewable energy sources. “Extreme temperatures are no longer a one day, one week or one month phenomenon. If there is one thing that unites our divided world, it’s that we’re all increasingly feeling the heat. Earth is becoming hotter and more dangerous for everyone, everywhere,” he said in the statement.

In context- The EU’s Copernicus Climate Change Service reported that 21, 22 and 23 July were the hottest days on record. The World Meteorological Organization and the Intergovernmental Panel on Climate Change have documented a rapid increase in the scale, intensity, and frequency of extreme heat events. These conditions are causing widespread health crises, economic disruptions, and exacerbating inequalities, with vulnerable populations being the most affected.

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CIRCLE YOUR CALENDAR-

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 for a comprehensive listing of upcoming news events, national holidays and news triggers.