TODAY: KSA’s Amak, Power Metal Resources line up a new mining JV

Good morning, nice people. It’s a relatively quiet morning on the regional climate industry front, but we have a basket of updates from across the region and beyond with a new nickel mining JV on the horizon for Saudi Arabia. First, a quick update on the China-EU trade quarrel…

THE BIG CLIMATE STORY OUTSIDE THE REGION- There’s no single story shaping the conversation this morning, but the European Union is set to reduce proposed final tariffs to be imposed on Chinese-made EVs imported by Tesla and other electric vehicle manufacturers, Reuters reports, citing a source with knowledge of the matter. Tesla will see its proposed tariff reduced to 7.8% from 9%, while Geely could incur a lower 18.8% levy instead of 19.3%. BYD will see no change to its proposed 17% tariff, while a tariff rate of 35.3% would be applied to SAIC and other companies deemed uncooperative with the bloc’s anti-subsidy investigation. The additional tariffs would be on top of the EU’s standard 10% import duty for vehicles. Bloomberg also picked up the story.

What’s next: The proposed definitive levies will be subject to a vote by the EU’s 27 states before they come into force in November. They will be applied unless a qualified majority of 15 EU members vote against the implementation of the duties.

REMEMBER- The duties are part of a brewing trade war with China that recently widened to include Canada. Last month, Canada said it will impose 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. Canadian Prime Minister Justin Trudeau said these measures are intended to protect Canadian industries in response to China’s state-directed policy of over-capacity.

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WATCH THIS SPACE-

#1- Alpha Dhabi to exit OCI’s methanol unit stake: Abu Dhabi-based Alpha Dhabi Holding will offload its 11% equity stake in OCI Global’s methanol business OCI Clean Fuels, according to an ADX filing (pdf). The transaction is expected to close in 2025, subject to regulatory and shareholder approvals. This move comes as part of OCI Global’s sale of its methanol business operating in the US and Europe to Canadian methanol producer Methanex earlier this week.

ICYMI- OCI Global sold its entire methanol business to Methanex in a USD 2.05 bn agreement. Methanex will make the purchase by paying USD 1.15 bn in cash, in addition to the issuance of 9.9 mn of its shares valued at USD 450 mn, giving OCI a 13% ownership of the company to make it the second largest shareholder. The transaction is set to be completed in 1H 2025, pending regulatory and shareholder approvals.

#2- US electric aircraft developer Joby Aviation applied for certification to operate commercial air transport in the UAE, according to a statement. The company will develop air taxi operating manuals, undergo facility inspections, and complete the observation of pilot and aircraft mechanic training and flight operations by the country’s General Civil Aviation Authority as part of the process.

We knew this was coming: Joby said last month it plans to launch battery-powered air taxis in Dubai by late 2025. The company plans to kick off infrastructure work later this year, begin initial flights early next year, and eyes full commercialization by the end of 2025.

#3- Etihad Water and Electricity Company (Ewec) plans to extend new energy tariff reductions agreed earlier this year to 50 industrial and tech businesses in Ras Al Khaimah, Fujairah, Ajman, and Umm Al Qaiwain over the next two years, Wam reports. Ewec has so far processed applications from 10 firms.

Background: Ewec revised its energy consumption tariff structure for industrial and tech customers in the northern emirates at the Make it in the Emirates forum earlier this year. The new tiered pricing system targets manufacturers with a monthly consumption exceeding 10 MW per hour, with rates for the tariff now beginning at 26 fils per KW hour, down from 32 fils per KWh.

#4- Pacific islands push to recognize ecocide as a crime: Vanuatu, Fiji, and Samoa have submitted a proposal to the International Criminal Court (ICC) to make ecocide a punishable crime alongside genocide and war crimes, The Guardian reported earlier this week. If such efforts are successful, heads of polluting companies and government leaders found guilty for environmental destruction could be tried for the offense. The proposal landing at the ICC is a result of campaigning by NGO Stop Ecocide International since 2017 and Vanuatu taking the first step to recognize ecocide as a crime back in 2019.

What is ecocide? An expert panel by Stop Ecocide defines it as “unlawful or wanton acts committed with knowledge that there is a substantial likelihood of severe and either widespread or long-term damage to the environment being caused by those acts.”

Next steps: ICC discussions on the matter will likely take years to complete, the Guardian writes, with strong resistance expected from most countries and companies. International lawyer Philippe Sands told The Guardian that he was “100% certain” ecocide will eventually be recognized by the ICC as a crime, the only question is when.

There is already some recognition: Ecocide is classified as a crime in 11 countries, with 27 more nations considering taking a similar step, the World Economic Forum said, citing data by the Thomson Reuters Foundation. Last year, a Mexican lawmaker submitted a bill to criminalize the act with perpetrators at risk of 15 years of imprisonment or fines of USD 90 per day if passed. The Netherlands, Scotland, and Brazil have submitted similar proposals while Belgium and the Catalan government are finalizing their own laws.

#5- Plans for China to expand its carbon market to include steel, cement and aluminum could set a low standard for companies taking part, experts told Reuters yesterday. The expansion will require around 1,500 industrial enterprises to buy carbon emission allowances (CEAs) to cover CO2 emissions from fossil fuel consumption. However, the initial phase from 2024 to 2026 will allow big amounts of gratuitous credits which could limit market participation. “The work plan, while lacking in sufficient detail, looks fairly lax in terms of allowance allocation and compliance deadlines,” Beijing-based lawyer Shawn He told the newswire.

Addressing challenges one step at a time: China’s national carbon market, launched in 2021, is already the world’s largest, covering 2.25k power plants with around 5 bn tons of total emissions, the newswire writes. Despite increasing carbon prices, the market has faced challenges due to an oversupply of allowances, leading China’s environment ministry to strengthen incentives post-2026 by reducing gratuitous allowances and setting tougher industry targets. This phased approach is intended to help firms adapt to market rules and improve data collection under an ultimate goal to spur market activity.

IN OTHER CHINA NEWS- China and Norway will hold discussions on green transition every two years, according to a statement (pdf). The dialogue aims to enhance collaboration in reducing greenhouse gas emissions, protecting and restoring biodiversity, and developing new green industries and related jobs.

ICYMI- Chinese President Xi Jinping told Norwegian PM Jonas Gahr Stoere earlier this week that Beijing was ready to cooperate with Oslo on green energy, environmental protection, and electric vehicles.

DANGER ZONE-

#1- The world has a burgeoning plastics problem: The world’s first global plastics pollution inventory by the University of Leeds showed that the amount of plastic waste that entered the environment in 2020 could wrap around the world 1.5k times if stretched in a line, according to a recent study (pdf). Researchers found that 52 mn tons of plastic waste entered the environment in 2020 after they used artificial intelligence to assess the growing crisis in a new detailed assessment. Two-thirds of the world’s plastic pollution came as a result of uncollected rubbish from 1.2 bn people lacking access to waste collection services.

The study singled out the top polluters: India replaced China as the world’s top plastic pollution hotspot with 9.3 mn tons — representing one fifth of the world’s total plastic pollution — due to its large population and lack of waste collection services. Nigeria followed with 3.5 mn tons of plastic waste while Indonesia came in third with 3.4 mn tons. China’s ranking dropped to the fourth place with 2.8 mn tons of waste on the back of improved waste collection and processing efforts.

Human health is at risk: The study showed that some 30 mn tons of plastics in 2020 was burned at homes or in streets without environmental controls, leaving populations at risk of “substantial” threats, including neurodevelopmental, reproductive and birth defects. “This is an urgent global human health issue — an ongoing crisis: people whose waste is not collected have no option but to dump or burn it: setting the plastics on fire may seem to make them ‘disappear’, but in fact the open burning of plastic waste can lead to substantial human health damage including neurodevelopmental, reproductive and birth defects; and much wider environmental pollution dispersion,” Dr Costas Velis, the study’s lead researcher, said.

Call for action: Researchers hope their detailed assessment would help policymakers agree on a legally binding global plastics treaty to help address the crisis. Final talks on the treaty are set to take place in South Korea in November.

#2- Antarctica sea ice set for record winter low: Antarctica’s sea ice is set for a record winter low for the second consecutive year, continuing a decline in the Southern Ocean’s frozen stretch, The Guardian reports, citing data from the Australian Antarctic Program Partnership (AAPP). The sea ice cover around Antarctica plummeted for six months last year, ending the winter with about 1.6 mn sq km less ice than the long-term average. This year, the ice levels are even lower than last year’s on the same date, indicating a significant shift in the Antarctic system.

It’s happening again: “What we’re really talking about are two incredible extreme events,” Dr Will Hobbs, a sea ice researcher at the University of Tasmania was quoted as saying. “Last year was outrageous and it’s happened again.” “What’s different now is that warmer Southern Ocean temperatures are really having an impact on the sea ice,” Hobbs said. “We know that the past two years have been the warmest on record for the planet, with global temperatures more than 1.5C above pre-industrial for extended periods. This global warmth is now reflected in the oceans around the Antarctic.”

The impact extends beyond Antarctica: The loss of sea ice could have a major indirect impact beyond the immediate region, according to the AAPP research. It removes a protective barrier that slows the loss of glacial ice from the continent and accelerates ocean warming as exposed dark waters absorb more heat. Such a loss of sea ice could take decades for the Antarctic ecosystem to recover from. Recent studies also suggest that low sea ice levels may have influenced weather patterns, including increased summertime rain events and dry winter days in regions like Australia.

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CIRCLE YOUR CALENDAR-

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.

Tunisia will host the Decarbomed Forum from Tuesday, 24 September to Wednesday, 25 September in Tunis. The forum will showcase innovative solutions for transitioning to carbon neutrality in Tunisia and the Mediterranean region, focusing on helping businesses take advantage of new tech, renewable energy services, and green financing mechanisms to decarbonize operations.

The UAE will host the Green Steel Summit from Wednesday, 25 September to Thursday, 26 September in Dubai. The event will bring together steel industry professionals and decision makers to discuss market intelligence and the latest technological developments in sustainable steelmaking.

Egypt will host the Portfolio Egypt conference on Monday, 30 September in Cairo. The event aims to enhance cooperation among Arab stock exchanges and will cover crucial topics including market integration, product diversification, carbon markets, and regional debt markets. It will aim to outline recommendations to strengthen regional financial markets.

Egypt will host Cairo Sustainable Energy Week from Tuesday, 1 October to Thursday, 3 October in Cairo. The event will bring together policymakers, companies, and experts to discuss collaboration on the renewable energy transition across 17 Arab countries.

The UAE will host the World Green Economy Summit from Wednesday, 2 October to Thursday, 3 October in Dubai. The summit will promote the push for a green economy and will offer a platform for international entities to collaborate on sustainable development, financing, and policymaking.

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