Good morning, friends. We have another balanced news day, led by the UAE’s plans to advance AI for the country’s green transition. Meanwhile, Saudi Arabia awarded a handful of new exploration licenses for minerals critical for the green economy. Let’s dive right in.

THE BIG CLIMATE STORY OUTSIDE THE REGION- Canada moves to limit oil and gas emissions by 2030: Canada’s government proposed draft regulations to cap greenhouse gas emissions from the oil and gas sector at 35% below 2019 levels by 2030. The regulations would, if enacted, introduce a “cap-and-trade” system to encourage cleaner production, requiring companies to report emissions starting in 2026. The first penalized compliance period will run from 2030 to 2032.

IN CONTEXT- Canada’s oil and gas production relies on the world’s dirtiest crude oil sands. The sector is responsible for a third of the country’s annual emissions, and record growth of the sector — largely motivated by the US’ growing demand — spiked its emissions by 142% over the last 19 years.

The regs aren’t exactly popular: Western oil-rich provinces, led by Alberta, criticized the federal efforts to reduce emissions, while environmental watchdogs and activists demanded more aggressive action. The Business Council of Canada and Alberta Premier Danielle Smith have strongly opposed the emissions cap, arguing it harms the economy and regional interests.

The story made headlines in the international press: Reuters | Bloomberg | The Financial Times | The NewYork Times

HAPPENING TODAY-

#1- Egypt is hosting the World Urban until Friday, 8 November, in Cairo. The forum, established by the UN and one of its largest non-legislative events, will center around the effect of rapid urbanization on communities, economies, climate change, and policies and will bring together government representatives, academics, business people, urban planners, and more.

#2- South Africa’s Critical Mineral Africa Summit kicks off today in Cape Town. The summit aims to attract critical minerals investment to the continent and will be held alongside African Energy Week. The summit will be held in partnership with the Southern African-German Chamber of Commerce Partners, representing Germany’s increasing investments in southern Africa.

COP29 SCHEDULE-

YOUR GUIDE TO COP- COP29 is starting next week. Here’s a handy guide (pdf) for the main thematic days and what to expect and a full rundown of all the panels, workshops, discussions, debates, and keynote speeches.

DAYS TO LOOK FORWARD TO-

12-13 November: World Leaders Climate Action Summit

14 November: Finance, Investment and Trade

15 November: Energy, Peace, Relief and Recovery

19 November: Food, Agriculture and Water

21 November: Nature and Biodiversity, Oceans and Coastal Zones

22 November: Final Negotiations

WATCH THIS SPACE-

#1- KSA’s Tadweeer gains approval for 100% capital increase via bonus shares: Saudi Arabia’s National Environmental Recycling Co. (Tadweeer) received approval from the Capital Market Authority for its proposal to double the company’s capital by issuing bonus shares, according to a Tadawul disclosure. The plan — initially recommended by the board in August — will capitalize SAR 58.08 mn from retained earnings, providing freeshares to existing shareholders.

#2- Raysut Cement boosts efficiency and green fuel use: Oman’s Raysut Cement Company is set to launch a program to recycle industrial byproducts and use them as green fuel in cement production and electricity generation, Oman Daily reported.

The company has been experimenting with new technologies to repurpose industrial waste and byproducts as green fuels or as inputs in cement making, with successful results. One major project at the Salalah plant reuses hot air to generate 30% of the plant’s electricity, reducing CO2 emissions by 50k tons annually, CEO Hilal Saif Al Dhamri said, according to Oman Daily. The tech initiative also helped Rasyut’s Sohar Cement increase its production capacity from 2k to 5k tons per day while reducing electricity consumption by 24%.

#3- Egypt’s Dabaa nuclear plant receives core catcher: The fourth unit of Egypt’s 4.8 GW Dabaa nuclear power plant has received its reactor core catcher, according to a statement. The equipment will be installed on 19 November on Egypt’s Nuclear Energy day. The plant’s third unit received its reactor core catcher in July and was installed in October. Core catchers are key safety features that are installed under reactor vessels to catch any melted core material and cool it.

Other key safety projects are advancing too: Egyptian contractor Petrojet was awarded a USD 100 mn contract by Atomstroyexport — a fully owned subsidiary of Russian state nuclear firm Rosatom — to implement coastal protection works near the 4.8 GW Dabaa nuclear power plant in September. Construction of the project is set to be completed by 2028.

ِALSO- Egypt wants to attract USD 4 bn in renewables investment in 2025: Egypt is looking to attract USD 4 bn in foreign investment in the renewable energy sector next year, Al Arabiya Business reports, citing unnamed government sources. The country will exclusively focus on funding from the private sector and has already presented the plans to companies from Japan, France, China, Germany, Italy, Spain, and the US with talks set to commence by the end of December.

#4- Adnoc + 44.01 to expand carbon-to-rock tech project: The Abu Dhabi National Oil Company (Adnoc) and Omani carbon removal and mineralization startup 44.01 are planning to scale up their carbon-to-rock project in Fujairah after successfully mineralizing 10 tonnes for carbon dioxide into rock formations in under 100 days, according to a press release. The expansion will get help from Fujairah Natural Resources Corporation (FNRC) and Masdar, which powered the pilot’s operations with renewables.

The scaled-up project will see Adnoc and 44.01 aim to mineralize over 300 tonnes of carbon “over a longer duration” by capturing the greenhouse gas from the atmosphere, dissolving it in seawater, and injecting it into underground rock formations in Fujairah. The rock formations are peridotite, a kind of rock that is found deep underground and naturally mineralizes CO2. Fujairah was chosen for the pilot because peridotite is readily available.

The company has been active for some time: 44.01 has been active in Oman since 2022, and in January 2023 , Adnoc — in partnership with FNRC — invested USD 15 mn in 44.01 for the pilot, which began that same month. Most recently this year, the startup reeled in USD 37 mn in a series A funding round, which included support from top players like Norway’s Equinor Ventures, Bill Gates’ US-based Breakthrough Energy Ventures, and Amazon’s Climate Pledge Fund. The startup is competing for the Musk-funded USD 100 mn Carbon Removal XPRIZE.

#5- Marsh Ins. targets fake carbon credits: Ins. broker Marsh will offer contracts to protect companies against fraud in the carbon credits market, according to a statement. The move comes amid reports of slowed carbon credit demand on the offsets over allegations of “greenwashing” and “unworthy” and fraudulent credits . The new ins. policy will provide financial protection for companies in the US, Europe, and the UK, covering scenarios such as purchasing counterfeit certificates, investing in non-existent projects, and outright theft. It will also give clients access to technology that can identify duplicate and counterfeit certificates and monitor projects through the new program.

SOUND SMART- Carbon credits can be faked through various methods, such as overstating emission reductions, creating non-additional projects, and double counting.

DANGER ZONE-

#1- Nitrous emissions threaten the world’s climate goals: The 1.5°C warming target will become out of reach if the world fails to curb nitrous oxide emissions — the third most abundant greenhouse gas in the atmosphere and the most harmful, Reuters reports, citing the Climate & Clean Air Coalition’s (CCAC). The CCAC will release its Global Nitrous Oxide Assessment report soon. Nitrous emissions are up 40% since 1980, mainly due to agricultural fertilizers and manure, while emissions are set to climb 30% from 2020 levels by 2050.

About CCAC: The CCAC is a voluntary group composed of governments, organizations, businesses, research institutions, and civil society groups that have committed to bettering air quality and mitigating climate change by reducing pollution. The network has grown to over 150 partners. The CCAC has also launched the Global Methane Pledge during COP26 which is a voluntary framework targeting methane emissions reductions of 30% by 2030.

#2- Mining continues to spur deforestation: Mining for critical minerals is increasingly linked to deforestation around the world leading to loss of tree cover around the same size as Los Angeles, the Financial Times reported, citing University of Maryland data analyzed by the World Resources Institute. Some 85% of deforestation due to mining occurred in just 11 countries, including Indonesia, Brazil, and Russia. The timber industry and wildfires cause more damage still, but the impact of mining is strong on indigenous land.

What drives demand for these minerals? Demand for critical energy transition minerals — including copper, cobalt, nickel, and lithium used in EVs, wind turbines, and solar panels — is set to triple by 2030 and quadruple by 2040 to support the global energy transition. Production of the minerals has also risen due to the demand for renewable energy and the geographical concentration of the mineral deposits, particularly nickel and cobalt. Investment in critical mineral mining grew 10% in 2023.

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