Good morning, friends. Green hydrogen and ammonia agreements are picking up once again in the region, with updates from Egypt and Jordan this morning. We also have a smattering of debt and investment updates to dive into. But first, the Adani fallout continues…

THE BIG CLIMATE STORY OUTSIDE THE REGION- TotalEnergies halts business with Adani due to corruption allegations: French oil giant TotalEnergies has suspended investments in India’s Adani Group following a US probe into bribery and corruption at Adani Green Energy. Total has a 20% stake in Adani Green, 37.4% in Adani Total Gas, and has three renewable energy JVs with Adani Green. “Until such time when the accusations against the Adani group individuals and their consequences have been clarified, TotalEnergies will not make any new financial contribution as part of its investments in the Adani group of companies,” the company said in a press release. The company maintains that it was not informed of the investigation.

The scandal puts a wrench in Total’s Asia expansion plans: Total was banking on expansion in India — which is experiencing a surge in electricity generation — to grow its renewables and natural gas businesses. Its partnership with Adani was dubbed a “strategic alliance,” with 25% of Total’s renewables portfolio dedicated to investments in Adani’s solar and wind assets. The amount of Total’s financing linked to Adani stands at between 4-5 bn, Bernstein Research analysts estimated.

The story grabbed ink in Reuters, Financial Times, and Bloomberg.

HAPPENING THIS WEEK-

#1- The Egypt Energy Show will open its doors today in Cairo and run through to Thursday. The event — promoted as North Africa’s largest energy gathering — will bring together local and international energy companies from the entire energy value chain from energy storage to transmission and renewable along with government officials from at home and the region.

#2- The World Food Security Summit is kicking off today in Abu Dhabi and wraps tomorrow. Experts and stakeholders will discuss the development of innovative solutions and strategies for sustainable food production in challenging conditions.

#3- The RAK Energy Summit will begin tomorrow in Ras Al Khaimah, UAE. Discussions and panels will be centered around the energy sector transition and net-zero targets, with topics ranging from policy to implementation of new technologies.

WATCH THIS SPACE-

#1- The fifth and final round of UN-brokered talks that hope to secure an international agreement curbing plastic pollution kicked off yesterday in Busan, South Korea. The talks — running until 1 December — hope to address the plastic waste crisis by agreeing on a combination of measures for waste reduction and management, Reuters reported. Over the next few days, delegates from over 170 countries will be huddling to hammer down a final agreement from a 69-page draft agreement (pdf) that includes widely conflicting options.

The differences: A coalition of more than 60 “high ambition” nations led by Rwanda and Norway is pressuring for an “upstream” approach, targeting plastics at the production level, the Financial Times reports. Such an approach would include working towards phasing out single-use plastics and banning poisonous chemicals used in production. In contrast, fossil fuel-dependent countries — like Saudi Arabia, Russia, and Iran — are opposing any binding production caps and are pushing instead for management solutions, arguing that the agreement should raise money to scale up recycling and improve waste collection, according to Bloomberg.

Unprecedented urgency as plastic waste moves towards unmanageable levels: Plastic use could triple by 2060, and so is its waste, with half of that amount set to end up in landfills and less than a fifth being recycled, The Guardian reports, citing data provided jointly compiled by environmental group Resource Futures and international Christian charity group Tearfund.

#2- SPPC prequalifies developers for sixth round of NREP: The Saudi Power Procurement Company (SPPC) has prequalified a total of 22 utility project developers — national and international — for the sixth round of wind and solar projects under the National Renewable Energy Program (NREP), according to a statement. The prequalified bidders include Masdar, EDF Renouvelables, Total Energies, Marubeni, Sumitomo, Jera, Kepco, Korea Western Power, Spic Huanghe Hydropower, Jinko Power, and Sembcorp Utilities.

This has been in the works: The company issued requests for qualification (RFQs) for five wind and solar projects in September. This round will add a combined capacity of 4.5 GW to Saudi Arabia’s renewable energy portfolio. Key projects in this round include the 1.5 GW Dawadmi Wind IPP in Riyadh and four solar PV projects: a 1.4 GW plant in Najran, 600 MW each in Samtah and Ad Darb in Jizan, and a 400 MW plant in Hail.

#3-Abu Dhabi Islamic Bank (ADIB) has released its first comprehensive Net Zero report (pdf), according to a statement. The report sets decarbonization targets for 2030 across its operational and financed emissions, aiming for a 49% reduction in operational emissions by 2030 compared to its 2022 baseline and setting sector-specific targets in its financing portfolio.

Sector-specific targets breakdown:

  • Home finance to reduce Scope 1 and 2 emissions by 39%.
  • Car finance to to reduce Scope 1 and 2 emissions by 19%.
  • Real estate developer activity to reduce Scopes 1, 2, and 3 by 41%.
  • Air transport to reduce Scopes 1, 2 and 3 by 28%.
  • Electricity, gas, steam, and air conditioning supply to reduce Scopes 1, 2, and 3 by 37%
  • Petroleum manufacturing to reduce Scopes 1, 2 and 3 by 18%.

Not their first: ADIB released its Environmental, Social, and Governance report detailing around AED 5.57 bn that has been invested in sustainable finance throughout 2023 in July. The bank also highlighted its commitment to net zero Scope 1 and Scope 2 emissions by 2030 — and announced its Scope 1 emissions have been reduced by 65% since 2022

#4- Egypt launches green label guidelines: Egypt’s Ministry of Environment has launched the Green Label Guidelines project, which sets rules for how plastic products can qualify for a green label, according to a statement. Plastic manufacturers will be able to submit an application to receive a “green label” certificate, which is expected to be valid for three years. The ministry hopes that the guidelines — developed with support from the German International Cooperation (GIZ) — will encourage recycling and incentivize plastic manufacturers to increase their use of recyclable components in their production to reduce plastics’ negative impact on the environment. The statement does not specify the type of incentives that would be available for those who receive the license.

What are the criteria? In order for plastic manufacturers to receive the green label, they will have to redesign their products to contain a certain percentage of recycled materials or be completely biodegradable, and limit the production of waste. The green label will be limited to highly recyclable polymers — PET, HDPE, LDPE, or PP. These products will also have to align with standards set by the Egyptian Organization for Standardization and Quality, with products used for food also having to meet the National Food Safety Authority requirements.

#5- Major tech companies like Google, Microsoft, and Amazon notably reduced their public profile at COP29, the Financial Times reported last week. Unlike previous summits, the tech giants chose not to exhibit in the conference’s business area, known as the green zone. This shift comes as the industry faces increasing scrutiny over the significant energy demands of data centers supporting AI. Google reported a nearly 50% increase in energy emissions over the past five years due to AI, and a Morgan Stanley analysis predicts that global emissions from data centers could triple by the end of the decade because of generative AI.

Data centers could slow the energy transition: Utilities in the US, Poland, Germany, and Malaysia are turning to natural gas and coal to meet the surge in electricity demand from data centers as the deployment of clean energy lags behind, Reuters reported last week. Dominion Energy is constructing a 1 GW gas plant in the data-centers-dense Virginia, while Entergy is building its first natural gas-fired power plant in Mississippi in fifty years to power two Amazon data centers.

Still, some major players are hailing AI potential in reducing emissions: Adnoc, Masdar, and Microsoft recently released a joint report highlighting the transformative potential of AI for the clean energy sector. The report bets on AI applications’ potential to make energy operations and grid connections more efficient and predicts that AI-driven energy demand could stimulate the innovation of carbon-free energy solutions. Adnoc Group CEO and Industry and Advanced Technology Minister Sultan Al Jaber called for “integrating renewable energy, nuclear energy, and gas in the most cost-and carbon-efficient way” to meet the surge in energy demand created by the “exponential growth of AI” earlier this month.

#6- Big oil places faith in biofuels uptake: Major oil and gas companies — such as ExxonMobil, Chevron, BP, Shell, TotalEnergies, and Eni — are placing their bets on sustainable aviation fuel (SAF) with 43 projects expected to be operational by 2030, Reuters reported last week, citing a Rystad report. These companies’ investments could add 286k barrels per day (bpd) of production capacity, with BP taking the biggest share with a 130k bpd production capacity. The aviation sector accounts for 2% of global energy-related emissions.

But not everyone shares that sentiment: AirAsia co-founder thinks SAF is “stupid” and “makes absolutely no sense at all because there is not enough cooking oil in the world to fill the planes,” he said at the Skift Global Forum East in Dubai, The National reports. To achieve the International Air Transport Association’s (IATA) goal to reach net zero by 2050, “engine manufacturers and plane manufacturers will have to come up with better equipment,” he said. Still, SAF is expected to account for 65% of emissions reductions aviation needs by 2050, a massive increase from today’s 0.53%, the National reports citing IATA estimates.

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CIRCLE YOUR CALENDAR-

Qatar will host the World Energy Storage Conference from Tuesday, 3 December to Thursday, 5 December in Doha. The event will gather scientists, researchers, engineers, policymakers, and industry experts to discuss advancements and challenges in energy storage technology. The detailed agenda is yet to be announced.

Saudi Arabia will host the Conference of the Parties (COP16) to the United Nations Convention to Combat Desertification from Monday, 2 December to Friday, 13 December in Riyadh. The summit will convene leaders and officials from 196 member-states and territories to advance actions and hold ministerial dialogues on resilience and finance, focusing on policies, tech and innovative funding mechanisms.

The UAE will host the World Energy Summit from Tuesday, 14 January to Thursday, 16 January in Abu Dhabi. The summit will host over 350 speakers including energy industry leaders and policymakers with discussions ranging from eco-waste to sustainable cities. An exhibition will also be held for showcasing green products.

Saudi Arabia will host the Future Minerals Forum from Tuesday, 14 January to Thursday, 16 January in Riyadh. The forum will gather stakeholders from over 170 countries to discuss mineral technology and exploration. Speakers will include senior government officials and CEOs from renowned mining companies Vale, Rio Tinto, and Manara.

Bahrain will host the Sustainability Forum Middle East from Tuesday, 28 January to Wednesday, 29 January in Manama. Climate experts and decision-makers will convene to discuss a number of issues ranging from decarbonization to supporting SMEs on their path to net zero. Speakers will include GCC government officials and industry leaders from the banking and industrial sectors.

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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