Good morning, folks. We have a relatively light news day today to round out the week, with our big story of the day being Singapore-based energy trader Mercantile & Maritime Group’s plans to set up a AED 2.2 bn biofuel processing facility at its MENA Terminals facility in Fujairah.

^^ We have more details on this story and others in this morning’s news well, below.

THE BIG CLIMATE STORY OUTSIDE THE REGION- Green stocks plummet after Trump victory: Shares in US and EU renewable energy and EV firms fell as anxious investors dumped some of their stocks following Donald Trump’s re-election as US president. Solar companies were the hardest hit, with shares in companies like Sunnova Energy International closing down 51.6%, while Sunrun closed down 29.6%, and First Solar fell 10.1% in New York trading yesterday. Danish renewables firms Orsted (-12.8%) and Vestas Wind Systems (-12.8%) also took a hit, as did German automakers including Mercedes-Benz (-6.4%) and BMW (-6.6%).

But some remain optimistic: Trump’s campaign has been vocal about raising tariffs on EVs and terminating the Inflation Reduction Act — a major regulatory driver of the US’ demand for clean energy. However, the economic benefits and job creation from projects under the IRA, especially in Republican states, could make it difficult to repeal the law, McDermott Will & Emery partner Carl Fleming told Reuters. Experts suggest that while Trump may favor fossil fuel extraction on public lands, the broader market dynamics and existing investments in clean energy would continue to drive the sector forward.

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

HAPPENING TODAY-

#1- The World Urban continues until tomorrow 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 two-day Critical Mineral Africa Summit concludes 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

COP WATCH-

China wants trade barriers added to COP29 agenda: A China-led group filed a last-minute request to the UN climate body to include talks on “climate-change related unilateral restrictive trade measures” to the COP29 agenda, reports Reuters. The group, known as BASIC, includes Brazil, India, and South Africa.

The pitch: The bloc argues that developed countries are introducing trade barriers on climate-related grounds that are harming developing nations. The group made a specific reference to the EU’s carbon border tax (CBAM) in its request to COP.

What’s next: COP’s rules require that agendas are adopted by consensus at the beginning of the summit. Any disputed items have the potential of delaying the summit’s start, chipping away at the limited time devoted to the already critical agenda items. The EU is expected to oppose the move, Reuters reported.

The outcome may have big consequences: Dispute agenda items have shifted discussions before. At the 2022 summit, a controversial agenda item to discuss financial payments on climate damage resulted in the world’s first fund of the sort.

ALSO- More world leaders to skip COP29: Several world leaders from major economies, including US President Joe Biden, EU Commission President Ursula von der Leyen, and Brazilian President Luiz Inácio Lula da Silva, are set to miss the upcoming COP29 summit, Reuters reports. Biden’s absence is chalked up to the US presidential election, while von der Leyen remains in Brussels due to political transitions within the European Commission. Lula recently withdrew after a head injury.

WATCH THIS SPACE-

#1- KSA launches 8 GWh battery storage tender: Saudi’s Power Procurement Company (SPPC) initiated the qualification process for its first group of Battery Energy Storage System (BESS) projects, totaling an 8 GWh capacity, according to a statement.

The details: This tender comprises four projects, each with a 2 GWh capacity, including Al Muwyah and Haden projects in Makkah, Al Khushaybi project in Qassim, and Al Kahafa project in Hail. Each project follows a build-own-operate (BOO) model, allowing the selected bidder to hold full ownership via a special purpose vehicle (SPV), SPPC said. Each SPV will sign a 15-year Storage Services Agreement with SPPC.

SPPC has other major projects in the works: The company shortlisted multiple consortiums last month to develop four solar projects with a total capacity of 3.7 GW. The projects are set to reel in SAR 8 bn (USD 2.1 bn) of investments.

#2- Morocco eyes Tan-Tan port for green hydrogen exports: Morocco’s National Ports Agency issued a tender for a feasibility study to position the Tan-Tan port as a green hydrogen hub, North Africa Post reports. The port is part of Morocco’s green hydrogen initiative, which was launched last March and involves allocating 300k hectares for green hydrogen projects. ANP is looking to leverage the port for green hydrogen exports as well as its derivatives, including ammonia and e-methanol.

Why Tan-Tan? The port, based in El Ouatia, is in close proximity to the Guelmim Oued Noun region, which is eyed by global energy firms, including France’s TotalEnergies.

There’s been some talk: Morocco and the World Bank were in talks back in January to explore the feasibility of building green hydrogen storage, ship refueling, and export-dedicated facilities at the ports of Tan-Tan, Jorf Lasfar, Mohammedia, and Tanger-Med. The study aimed to assess the technical and economic potential for green fuel production at Moroccan ports in a bid to help decarbonize the shipping sector, which accounts for 2.9% of global greenhouse gas emissions.

#3- Masdar + Sarawak Energy + Gentari consider floating solar project in Malaysia: UAE renewables giant Masdar has signed a joint study agreement with Malaysia’s Sarawak Energy and Malaysian renewables firm Gentari to evaluate the feasibility of a large-scale floating solar plant in Sarawak, Malaysia, according to a press release. The study will assess technical feasibility, environmental impact, and financial viability. The plant would mark Masdar’s second floating solar power plant in Southeast Asia following its 145 MW Cirata plant.

Why floating solar is a good move: Installing offshore solar panels would resolve the many challenges faced in regions worldwide in terms of available land and adequate space that doesn’t require deforestation. Adding solar systems to existing reservoirs could allow more than 6k cities around the world to develop self-sufficient power systems. The water’s cooling effect on the floating panels can also make them more efficient while reducing evaporation — and thus cutting the loss of freshwater supply — from the shade created by the panels.

Masdar is interested in other Indonesian ventures: Earlier in February, Masdar acquired shares in the geothermal unit of Indonesian government-owned geothermal utility Pertamina, which controls 82% of Indonesia’s installed geothermal energy capacity and manages 13 geothermal energy projects generating 1.87 GW of electricity.

IN OTHER UAE NEWS- Tadweer + Emsteel to collaborate on alternative fuel: UAE-based waste management company Tadweer and Emsteel have signed an MoU to manufacture sustainable building materials using alternative fuels and raw materials, according to a press release. Emsteel will use refuse-derived fuels produced by Tadweer, as well as construction and demolition waste, to source raw materials for use in its factories.

AND- Siemens to boost Abu Dhabi’s efforts to integrate EVs in the transport sector: Siemens partnered with the Abu Dhabi Commerce and Industry Chamber to back the emirate’s efforts in boosting the adoption of EVs across its transport sector, according to a press release. Under the agreement, the two parties will work together to organize workshops and training programs for entrepreneurs to inform them on how to use Siemens technologies in the EV sector, as well as market analysis.

#4- The economic impact of climate change is projected to be far more severe than previously estimated, according to a new report (pdf) from the Network for Greening the Financial System. The report highlights that the projected physical risk impact on global GDP has quadrupled by 2050 in some scenarios, driven by record increases in temperatures. Physical risk includes droughts, heatwaves, floods, and cyclones.

The gray cloud: Global GDP is on track to shrink either way: Under the current policy trajectory, the world may see an 8% decline in GDP, whereas a net-zero scenario would keep this loss at just below 4%.

ICYMI- Recent analysis predicts even bigger shocks to the GDP: Climate risks could cause the world to lose 14% of its GDP, impacting emerging and advanced economies alike, and Sub-Saharan Africa and Asia would be hit hardest with potential economic losses exceeding 30% of GDP by 2050 under current policies and planned clean energy investments, according to Moody’s. However, a net-zero scenario would keep world output decline to 7.1%.

#5- JPMorgan mulls biodiversity financing options despite disappointing COP16 outcomes: JPMorgan Chase & Co. is currently studying “a variety of innovative financing and investment solutions” for biodiversity, the financial institution’s head of Nature and Biodiversity Gwen Yu told Bloomberg. The sector needs to avoid “the paralysis of seeking perfection over progress,” said Yu in reference to the lack of concrete biodiversity finance guidelines after COP16.

The plan: The bank plans to prioritize products that could be financially viable because “showing that projects are bankable is essential to meeting client demand,” head of Nature and Biodiversity Gwen Yu told Bloomberg. The lender has not yet disclosed what these biodiversity finance products would look like.

ICYMI- COP16 ended without parties coming to a consensus on financing: Countries were unable to come to a consensus on biodiversity funding mechanisms and commitments at COP16, with the EU, Switzerland, and other developed countries coming in with objections in the 11th hour. Talks may resume next year during an interim meeting planned in Thailand. Financing has always been a point of contention, with developing and developed countries seeking different outcomes.

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