TODAY: UAE’s IRH partners with Indian companies to shore up critical minerals supply chain

Good morning, folks. It’s finally the weekend, and we have a compact issue this morning with the latest updates from the critical minerals mining world and an update on Egypt’s blockbuster renewables-power desalination program. First, there appears to be an about-turn from Brazil’s climate champion…

THE BIG CLIMATE STORY OUTSIDE THE REGION- There’s no single story shaping the conversation this morning, but Brazilian President Luiz Inacio Lula da Silva is reportedly succumbing to the pressure by committing to plans to finish the BR-319 highway that cuts through the Amazon rainforest, Reuters reports. Lula’s commitment comes despite warnings the project could cause a “catastrophic wave of deforestation,” and news that the Amazon faces a record drought is hampering waterway navigation from the north of Brazil. AP also picked up the story.

About the highway: The BR-319 extends around 900 km from Porto Velho near Bolivia to the Amazon’s biggest city Manaus. The project was first started in the 1970s before being abandoned, allowing the jungle to overgrow the progress. Around 400 km of the highway need to be paved, and two bridges need to be rebuilt to allow trucks to cross the Igapo-Acu river.

Experts are concerned: “As unprecedented drought and fires ravage the Amazon, the paving of the BR-319 highway will unleash a catastrophic wave of deforestation that further exacerbates today’s crisis, with dire global climatic implications,” Amazon Watch Christian Poirier told the newswire.

Lula is seen drifting from his championed climate priorities: Lula’s decision over the highway contradicts his stance to limit the Amazon’s destruction. “The world that buys our food is demanding that we preserve the Amazon. And why? Because they want us to take care of the air they breathe,” he said, stressing that his country would not keep the Amazon as a “sanctuary for humanity” but would instead focus on developing the region economically in a way that was sustainable.

WATCH THIS SPACE-

#1- Egypt to tender the first phase of mega desalination programme in 4Q 2024: Egypt will start tendering the first phase of its ambitious Public-Private Partnership (PPP) water desalination programme in 4Q this year, Zawya Projects reports, citing comment made by the Director of the Egyptian Finance Ministry’s PPP unit Atter Hannoura at a PPP forum in Dubai.

What’s on the table: The first phase, which will hold an investment ticket of USD 3 bn, includes the development of 15 renewable energy-powered desalination plants with a total capacity of 3.35 mn cbm/d by 2025, Hannoura said. Four desalination plants will be offered to investors, with the tendering phase starting with two desalination plants in Dabaa and El Hamam. The two plants will have capacities of 40k m³/day and 190k m³/day, respectively. The investments for the two plants are estimated at USD 210 mn.

This has been in the works: Seventeen regional and international consortiums were prequalified last year for the tender process for several of the country’s planned desalination as part of the first phase of the government’s desalination program. The country’s sovereign wealth fund said at the time that it plans to have three or four plants tendered in 3Q 2023, yet it remains unclear what caused the delay.

REMEMBER- Egypt needs over 114 bcm of water annually to achieve full self-sufficiency, but only 60 bcm is available each year, according to officials. This has pushed Egypt to resort to alternatives despite hefty price tags, including the EGP 18 bn Bahr El Baqar wastewater treatment facility. Egypt’s USD 50 bn water plan could even grow to cost EGP 1 tn by 2037, President Abdel Fattah El Sisi previously said.

#2- Electric and hydrogen fuel truck prices need to fall by up to 50% before becoming viable alternatives to diesel, Reuters reports, citing a study by consultancy firm McKinsey. The EU’s electric and hydrogen heavy freight vehicle share needs to reach 40% of new sales by 2030 to meet the bloc’s carbon reduction targets, but is currently less than 2%, the study showed.

Production costs are an obstacle: Emissions-free trucks are currently 2.5-3x more expensive to produce than diesel trucks, which deters logistics firms from deploying them, the study showed. It estimates that electric truck prices should not be more than 30% higher than traditional vehicles, with a sought cut in production costs only achieved through technological developments in batteries.

But it won’t be easy: Chinese truck makers produce cheaper products and have a 20% share of the bus market in the EU, adding another layer of difficulty to the EU’s carbon reduction goals.

#3- Canada could have more tariffs lined up for China: Canada is considering imposing a surtax on Chinese critical mineral products, batteries, solar products, and semiconductors, according to a statement by the country’s Finance Ministry. The ministry launched a 30-day public consultation on the potential surtax on Chinese products, citing what it described as “China’s intentional, state-directed policy of overcapacity.” The plans aim to protect Canadian workers and critical manufacturing supply chains from what Ottawa described as unfair competition by Beijing.

Background: Canada said last month 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.

#4- US offshore wind industry backs Harris campaign: The US offshore wind industry showed its support for Democratic presidential nominee Kamala Harris at a fundraiser in Manhattan, highlighting the concern over a possible re-election of Donald Trump hindering the industry’s progress, Bloomberg reports.

Trump has made his plans known: The Republican presidential candidate has already threatened to set his sights on slowing down the sector if re-elected. Trump plans to do this by possibly pausing project approvals and the sale of offshore wind leases to halt progress in the sector.

COP WATCH-

Global South NGOs have snapped up a larger share of attendance badges for COP29 in a bid by the UNFCCC to counter an imbalance in regional representation, Climate Home News reported last week. Some Global South campaigners have reported receiving double the badges normally allocated and welcomed the reforms, Global North groups expressed disappointment over the cut to their allocated quotas. The “Western European and Others Group” were allocated 40% of the total number of observer badges in the initial allocation for COP29 last month, a UNFCCC spokesperson told Climate Home, marking a reduction from allocation rates surpassing the 40% mark for the past 11 editions of the summit.

DANGER ZONE-

Nearly 40% of the most critical areas of the Amazon rainforest to curb climate change remain unprotected, Reuters reported yesterday, citing new data by nonprofit Amazon Conservation. These areas, primarily located in Peru, Brazil, French Guiana, and Suriname, are home to the densest trees and most continuous canopy cover, which store significant amounts of carbon.

Only a little over half of carbon areas are protected: Despite the importance of these regions, only 61% of peak carbon regions are designated as protected, the analysis showed, with even lower protection rates of 51% in Brazil, Suriname, and French Guiana. If destroyed, these carbon-rich areas could release large amounts of greenhouse gasses, exacerbating global warming.

Headlining the EnterpriseAM Finance Forum: We’ll be joined for the first time on stage by a senior government official, who’s joining us to outline a vision for where we’re going as a community and as an economy. The keynote interview will get underway at 9am sharp, and you won’t want to miss our exclusive networking breakfast from 8am.

Among the topics on the agenda:

• Welcome to the hot seat — top industry CEOs set the tone by addressing the biggest (and toughest) questions of the day.
• Looking from the outside in — what foreign investors and strategics think about Egypt right now.
• The only asset class in town — It’s real estate or nothing. We’ll get into the ins and outs of the industry, how it’s financing itself, which areas (and price points) are next, and more.
• Gazing into that crystal ball — The outlook for dealflow in 2025, from M&A and IPOs to securitization, FX and more.
• A once in a generation opportunity? — A deep dive into the promise and pitfalls of the emerging energy economy.
• Do we really love banking SMEs? — With NBFIs and fintech players staking their claims, banks are starting to take the SME market seriously.
• The NBFI panel — The resilience of the Egyptian consumer is the business story of the decade. How are banks and NBFS players building sustainable businesses? What are the opportunities — and credit worries — in the B2B space?

Haven’t requested an invitation yet? Do it today — space is limited. Tap or click here to let us know you’re interested.

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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.