Good morning, ladies and gents. It’s a fairly brisk issue this morning with some key updates on interconnection projects in Egypt and Jordan, along with a sizable contract signed in the UAE for electric trucks. First, let’s turn our attention back to the brewing tensions between China and… Canada, now?

THE BIG CLIMATE STORY OUTSIDE THE REGION- The trade war with China widens to Canada: Canada will slap a 100% tariff on Chinese EVs and a 25% tariff on Chinese steel and aluminum from 1 October, mirroring a similar move by the US and the EU. Tariffs will apply to all EVs shipped from China including Tesla vehicles. Canadian Prime Minister Justin Trudeau stated that these measures are intended to protect Canadian industries in response to China’s state-directed policy of over-capacity. “Actors like China have chosen to give themselves an unfair advantage in the global marketplace,” Trudeau said.

What’s happening with Tesla? Import volumes in Vancouver port spiked 460% y-o-y in 2023 when Tesla began shipping Shanghai-made EVs to Canada. Company shares closed down 3.2% in response to the decision, with analysts speculating there might be a financial impact if the company is forced to export vehicles to Canada from its higher-cost production base in the US.

The story made headlines in the international press: Reuters | AP | Bloomberg | The New York Times | The Wall Street Journal | CNBC | ABC

ON A RELATED NOTE- It’s a decisive trade decision week for the Chinese EV tariff hike in the US. Green industry manufacturers are bracing for final implementation plans by the Biden-Harris administration for tariff hikes this week, Reuters reports. The proposed tariffs — which include quadrupling duties on Chinese EVs to 100% and doubling tariffs on semiconductors and solar cells to 50% — have raised alarm among US manufacturers who fear the move could stifle the US’s green transition. US companies have urged the administration to postpone implementation of the tariffs or reconsider the increase, arguing the decision will threaten investments in green industry and the adoption of EVs.

Case in point: US automobile giant Ford Motor has specifically requested a reduction in proposed tariffs on artificial graphite, a critical material for EV batteries, citing its continued reliance on Chinese suppliers, the business newswire writes. Autos Drive America, a group representing international vehicle manufacturers, has called for stable tariff rates on batteries and other critical minerals through at least 2027 to give way to carmakers to “fulfill investments in US production and to bolster consumer adoption” of electric vehicles.

WATCH THIS SPACE-

#1- Egypt and Italy are set to complete preliminary studies for their planned 3 GW electric interconnection project by 4Q this year, sources from Egypt’s Electricity Ministry told Al Mal. The study conducted by a Norwegian consultancy appointed by the Italian side includes surveying the proposed route, identifying potential starting points in Egypt and Italy, and assessing the depth profile of the Mediterranean Sea. The study, which is funded by the Italian side, will be presented to the Egyptian side for review upon completion, according to the sources.

Who is funding the project? The sources said Egypt would not bear the cost of launching the power link which could be a core for an interconnection project between Egypt and Europe at a later stage. They said that Egypt’s Electricity Transmission Company would receive electricity transmission fees for the project.

Background: The two sides are assessing the potential to build a 3 GW, 2.8k km, HVDC cable that would connect Egypt’s West Sohag region to Italy’s Dolo Substation in the northern Mestre Industrial Area. The corridor is set to meet 5% of Italy’s peak electricity demand, and could expand to include an interconnection with the Gulf.

#2- Iran seeks investors for 40 GW of wind power potential: Iran’s Renewable Energy and Energy Efficiency Organization (SATBA) is offering 40 GW of wind power capacity to lure in investors to the sector, Tehran Times reports, citing statements by SATBA official Mostafa Rabiei. “After two years of collecting information in the preliminary stage, we have reached the figure of about 40k megawatts of electricity generation capacity which can be realized by investment in this sector,” Rabiei said, without providing details on the plan. Renewables account for about 7% of Iran’s total electricity generation with SATBA setting the country’s renewable power plants capacity at 1.2 GW, according to official data cited by Tehran Times. Iran plans to expand its renewables capacity further to 10 GW by August 2025.

REMEMBER- Iran’s renewables production increased 9%: Iran produced 261 mn kWh of renewables between 21 June and 21 July, marking a 9% increase from the previous month. This comes on the back of increased wind energy projects which represent 40% of the country’s total renewables capacity.

#3- Morocco’s waste imports from Europe face backlash: A decision by Morocco’s Energy Transition and Sustainable Development Minister Leila Benali to authorize the import of over 2 mn tons of rubber tyres and household waste from European countries for use as an energy source has faced strong opposition, Hespress reported earlier this week. Local environmental organization Ecolo Plate Forme du Maroc du Nord has urged Benali to reconsider the decision which it warned would have a negative impact on the environment and citizens health, according to a statement (pdf). The waste imports are said to include over 1 mn tons from the UK, 980k tons from France, 100k tons from Norway, 60k tons from Sweden, 31k tons from Spain among others.

The rationale: Morocco’s capacity to recycle local waste is limited to only 10% of its production, making the import of additional waste particularly problematic, according to the environmental group. They argued that burning rubber tires for energy, as justified by the ministry, is not environmentally friendly and contributes to air pollution and greenhouse gas emissions.

The debate has been ongoing: Morocco’s long history of importing foreign waste has been a catalyst for environmental activists to challenge this unsound policy, the Oxygen for Environment and Health Association researcher and head Ayyoub Krir told the local media outlet. He questioned the logic of importing waste when Morocco itself generates significant amounts of garbage.

DANGER ZONE-

El Tiempo criticizes Morocco’s artificial cloud seeding plans: Spanish weather agency El Tiempo has issued a report criticizing Morocco’s artificial cloud seeding plans, citing unpredictable weather consequences for the entire region, including Spain, Morocco World News reported on Sunday. Morocco is earmarking around EUR 10 mn for the plans which includes developing 20 cloud seeding projects to increase rainfall in water scarce areas by up to 15%.

Why is Spain worried? Morocco’s cloud seeding plans could affect the entire region, particularly areas in southern Spain such as Ceuta and Melilla, El Tiempo warned. It said that unprecedented heavy rainfall in drier areas can also lead to flooding and runoff that would cause damage to the soil. El Tiempo also emphasized the track record of unpredictability with climate geoengineering, arguing that cloud seeding could even lead to unforeseen droughts in some areas and heavy rainfall in others due to shifts in humidity levels.

REFRESHER- Cloud seeding is infusing clouds with substances that help water molecules stick together (like silver iodide) either by spraying it from a plane or shooting it up from the ground. The process can increase precipitation by 15% in turbid atmospheres.

Not new in Morocco: The North African country has been working with the US Agency for International Development (USAID) since the early 1980s to increase precipitation under its Al Ghaith cloud seeding programme, according to a report (pdf). The program explored increasing water sources using “scientifically based weather modification programs.”

REMEMBER- Water scarcity has been an ongoing problem in Morocco: Morocco has experienced five years of drought, with water inflows down from 2.5k cbm per capita annually in 1960 to 620 cbm in 2020 to place it in a situation of structural water stress. Last year the country approached the absolute water scarcity threshold of 500 cbm per capita per year.

HAPPENING THIS WEEK-

UK-Egypt trade and investment in the spotlight: Our friends at HSBC, together with the Egyptian-British Chamber of Commerce (EBCC) and UK Export Finance (UKEF), will host a webinar this week to discuss how to support infrastructure reforms, potential partnerships in Egypt, and ways to support and connect companies around the world. The webinar takes place next Thursday (29 August) from 12-1pm CLT / 1-2pm UAE.

Want to attend? You can sign up here.

The webinar is a scene-setter for the Egypt-UK Investment and Opportunities Forum in London on Monday, 16 September.

Infrastructure is a key part of the forum. The gathering — which follows on from a June infrastructure mission — will focus on promoting trade and investment in infrastructure, with an emphasis on green hydrogen and renewables as well as sectors including the auto industry, food processing, and tech.

Networking: The forum will include both open panels and pre-arranged business-to-business networking. It will also give attendees the chance to meet with government officials and industry leaders. GAFI will be on hand to deliver an economic update.

Want to join them in London? Register your interest in attending the event here.

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CIRCLE YOUR CALENDAR-

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.

The UAE will host the World Utilities Congress from Monday, 16 September to Wednesday, 18 September in Abu Dhabi. The event will gather global energy leaders, policymakers, and other industry professionals from the power and water utilities value chain to discuss industry trends and challenges.

Saudi Arabia will host the EV Auto Show from Tuesday, 17 September to Thursday, 19 September in Riyadh. The show offers a platform for participants to learn about the latest EV technologies and services.

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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