Good morning, ladies and gents. We have a quick read this morning with updates on Masdar’s European acquisition spree and the latest emerging from the UN’s Summit of the Future, but first, here’s a snapshot of what was said at the UN General Assembly yesterday…

THE BIG CLIMATE STORY OUTSIDE THE REGION- Climate change takes center stage at UNGA: World leaders took to the stage of the UN General Assembly (UNGA) in New York City yesterday to call for urgent climate action. In his opening speech, UN Secretary General Antonio Guterres named the climate crisis and AI as two “existential threats” plaguing the world and called on G20 countries to cut emissions and support developing countries, reiterating that “those who shoulder the blame must foot the bill. Polluters must pay.” Brazilian President Luiz Inácio Lula da Silva echoed the call for climate action in a world that is “doomed,” as drought and forest fires ravage Brazil. Also, US President Joe Biden gave his final address to the UNGA and celebrated the success of 2022’s Inflation Reduction Act securing USD 1 tn in clean manufacturing investments.

The story made headlines in the international press: Reuters | AP | CNN | Deutsche Welle | The New York Times | NBC | CBS

^^ We have more updates from the UNGA in the news well, below.

WATCH THIS SPACE-

#1- UAE’s Taqa expressed interest in taking part in a EUR 1.9 bn power interconnection project to link Europe’s power grids with MENA, according to a statement from Cypriot government spokesperson Konstantinos Letymbiotis.Slated for completion by 2030, the fully extended 1.2k km-long, 3k meter-deep cable is set to be the world’s longest and deepest high-voltage direct current interconnector.

More soon: Delegations from Taqa and Cyprus are set to meet in the coming weeks to outline a roadmap for the next steps of the potential partnership, Letymbiotis said.

Background: Taqa inked an MoU last December to explore joining Greece’s transmission system operator Independent Power Transmission Operation and Cyprus as a stakeholder in the 900-km Great Sea Interconnector project, connecting Greece’s grid network to Cyprus. Last week, Greece and Cyprus signed an MoU to resume work on the project, with future plans to extend the interconnector to Israel.

ALSO- Taqa partners on desalination initiative: Taqa, along with French utility firm Suez and German technology conglomerate Siemens, will participate in a desalination initiative targeting emerging markets, Reuters reports, without disclosing further details.

#2- UAE-backed Catalytic Transition Fund (CTF) will pull the trigger on the first round of investments as soon as this year, having already secured half of its USD 5 bn fundraising target, Brookfield’s Chair and Head of transition investing Mark Carney said during a high-level roundtable hosted by the UAE’s Alterra fund during New York Climate Week, according to a statement (pdf). The fund aims to bridge the financing gap in emerging markets while driving “collaboration between public and private finance to accelerate net zero transition,” Carney added.

ICYMI- Brookfield closed a USD 2.4 bn funding round for CTF from investors, including Caisse de dépôt et placement du Québec (CDPQ), GIC, Prudential, and Temasek, earlier this week. CTF is anchored by a USD 1 bn commitment from Alterra fund set up by UAE-backed USD 30 bn Alterra.

#3- Morocco allocates land for two new solar power plants: Morocco has finalized land allocation for two new solar power plants in the Khouribga province as part of its strategy to increase renewable energy use to 52% by 2030, Hespress reports. The plants are expected to generate around 200 MW, but no further details have been revealed.

It’s been a busy month for Morocco: The kingdom approved three key decrees earlier this month to boost the nation’s energy transition by diversifying energy sources, boosting renewable energy use, and enhancing energy efficiency.

#4- Pure Harvest is planning an expansion: Abu Dhabi’s Pure Harvest plans to raise at least USD 100 mn to expand into new markets including Singapore, Morocco, and Kuwait, CEO Sky Kurtz told Semafor. The agritech firm also wants to annex its Saudi operations into an independent entity.

The details: Pure Harvest plans to complete the financing of the new round by year-end and begin constructing a new farm in Morocco — likely its last as the firms plans a shift to a scalable “farming-as-a-service” model, where it plans to continue to sell its own branded products, Kurtz said. Rothschild & Co was appointed to advise on the raise, though the expected valuation was not disclosed.

Strong Saudi ties: Pure Harvest acquired a six-hectare agricultural facility near Riyadh last year, which is currently operated by Saudi agritech company RedSea, and plans to take over operations in January. The acquisition aims to double the company’s production capacity in Saudi Arabia. Back in February 2023, the company entered a partnership agreement with Saudi Arabia’s state-owned National Agricultural Development Company to jointly cultivate some 27 hectares of its lands to become a vertical integrated business generating revenues totaling some USD 1.6 bn by 2027.

#5- Italy seeks to accelerate EU review of internal combustion engine ban: Italy will request an early review in 2025 of the EU’s landmark law requiring zero emission cars from 2035, Reuters reports, citing comments made by Italian Industry Minister Adolfo Urso told a gathering of business associations and trade unions. The move reflects Italy’s resistance to the EU’s Green Deal policies, with Italian Prime Minister Giorgia Meloni criticizing the incoming ban as “self-destructive” to the auto industry. The proposal will be presented at an EU industry meeting this week, amid calls from some automakers to relax CO2 targets, although German automaker Stellantis opposes any delays.

ICYMI- The EU car lobby recently proposed a delay of emissions targets due to low demand: The EU car industry lobby is urging the government to use emergency regulation to delay the 2025 target of limiting the CO2 fleet emission of about 95 grams of CO2 per kilometer per vehicle. The group argued that the EU car sector can’t meet the target due to “low consumer demand for EVs and unfair competition from third country EV manufacturers.” To meet the emissions target, EVs would need to account for 20-22% of all sales, but the percentage is stuck at under 15% for cars and even less for vans.

#5- Rich countries could generate USD 5 tn annually to fund climate action by imposing taxes on fossil fuels, wealth, and corporations, according to a new study by advocacy group Oil Change International. Potential revenue sources include a proposed 2% wealth tax on billionaires, generating USD 483 bn. Other suggestions include financial transaction taxes, and ending fossil fuel subsidies, which would free USD 846 bn globally.

#6- Big Tech is driving demand for renewables to power AI and data centers: Big tech companies are keeping demand for renewable energy high as they seek to invest in AI and data centers, EDP CEO Miguel Stilwell d’Andrade told Bloomberg. The technology is highly energy intensive and firms are looking for ways to invest in AI and data centers while staying in line with their climate goals. EDP has secured agreements to sell renewable energy to big companies like Microsoft.

Things are looking up for the sector: Over the last few months, electricity prices were running low while interest rates remained high, but power prices are on the rise again – between USD 60-70 in the US – while interest rates deflate. Now the dynamic has changed from companies like EDP competing with each other for bids to companies instead reaching out to buy energy from their projects.

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CIRCLE YOUR CALENDAR-

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.

Egypt will host the EVs Electrify Egypt Summit from Thursday, 10 October to Saturday, 12 October in Cairo. This event will bring together industry players, engineers, and over 300 exhibitors for interactive showcases and EV test drives.

Egypt will host Cairo Water Week from Sunday, 13 October to Thursday, 17 October in Cairo. The event will explore various themes relating to water and climate and enhancing resilience in communities.

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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