Good morning, friends. It’s a relatively busy start to the week with the latest on Masdar expanding its European footprint and a new W for the region with MENA’s first blue bond issuance. Let’s jump right in.

THE BIG CLIMATE STORY OUTSIDE THE REGION- There’s no single story dominating the headlines, but the Biden administration approval of its eleventh offshore wind project got some ink in Reuters and Bloomberg. The SouthCoast Wind, a 2.4 GW farm off Massachusetts, will power over 840k homes with 141 turbines. A joint venture of Portugal’s EDP Renewables and France’s ENGIE, the project has been in development since 2018 and aims to begin construction next year, delivering power by the decade’s end.

Offshore wind’s future uncertain: The approval also comes just before President-elect Donald Trump — previously promised to halt the industry — takes office. Although the SouthCoast Wind project has received approval, it still needs an additional federal permit to begin construction.

WATCH THIS SPACE-

#1- Yemen may soon get Saudi-backed renewables company: The Saudi-Yemeni Business Council has reportedly agreed to establish three new joint companies, including one for renewable energy with an initial USD 100 mn capital investment targeting solar power generation for Yemen, Al Ekhbariyah reports. The plans were reportedly announced during a joint council meeting in Makkah this week, with the participation of more than 300 Yemeni and Saudi investors.

#2- Qatar threatens LNG halt over EU law: Qatar will stop liquified natural gas (LNG) exports to the EU if any member implements penalties from the bloc’s new ESG law targeting forced labor and environmental damage, Qatar’s energy minister and QatarEnergy’s CEO Saad Al-Kaabi told the Financial Times. “If the case is that I lose 5% of my generated revenue by going to Europe, I will not go to Europe … I am not bluffing,” he added. Al-Kaabi criticized the EU’s new legislation earlier this month, describing it as making “absolutely no sense.” The new law — which applies on companies with more than EUR 450 mn of sales in the EU — allows countries to fine a non-compliant corporation with up to 5% of its global revenue.

#3- Egypt’s Dabaa nuclear power plant will reportedly receive a reactor pressure vessel for its first reactor next July with a planned installation in October 2025, Al Mal reported on Saturday, citing Nuclear Power Plants Authority sources it says have knowledge of the matter. A second vessel is reportedly scheduled for a January 2026 delivery.

What’s a reactor pressure vessel, Enterprise? Reactor vessels act as a radiation barrier and contain the reactor’s core, the pressurized moderator, as well as other essential internal structures.

ICYMI- The nuclear energy facility has received four core catchers for its four planned reactors, with the fourth core catcher unit received last November. At least three of these core catchers have already been installed.

A BIT EARLIER ON THE CALENDAR- A delegation of German Bavarian business leaders will visit Egypt in January to explore green hydrogen investments, German ambassador to Egypt Jürgen Schulz told Al Arabiya on Thursday. Another delegation of investors from Germany’s Saxony state is also scheduled to visit in April with an eye on the energy and infrastructure sectors.

Germany is interested in Egypt’s green hydrogen: In October, Egypt and Germany agreed to boost hydrogen cooperation through knowledge sharing, R&D, market developments, and fostering relationships between Egyptian producers and German buyers. Also, through its H2Global hydrogen initiative, Germany inked a 20-year EUR 397 mn green ammonia offtake agreement in July for green ammonia produced at UAE-based Fertiglobe’s plant at Ain Sokhna, Egypt. The agreement will see Fertiglobe export 19.5k tons of green ammonia to Germany in 2027, potentially scaling up output to a cumulative 397k by 2033.

#4- Wells Fargo joins NZBA exodus: Wells Fargo has withdrawn from the Net-Zero Banking Alliance (NZBA) without giving reasons for the exit, Reuters reported on Friday. This marks another high-profile exit weeks after Goldman Sachs removed itself from the alliance.

Not the first climate alliance to see an exodus: Companies, such as the bond manager PIMCO, JP Morgan and Goldman Sachs, have also exited Climate Action 100+, another major global climate alliance for investors.

REMEMBER- An anti-ESG movement is growing in the US: US corporations are facing mounting scrutiny from US Republicans who have harshly criticized companies they perceive as climate-friendly, accusing them of “colluding” with climate advocacy groups and forming a “ climate cartel.” Last month, asset management giants BlackRock, Vanguard, and State Street were hit by an antitrust lawsuit filed by Texas and 10 other Republican-led states over their climate-related over their climate-related practices. You can read more about the impact in our deep dive into ESG divestment.

#5- EV sales are set to rise by 30% in 2025: Global sales of EVs are expected to see a 30% y-o-y increase in 2025 reaching 15.1 mn units, according to a new S&P Global study released on Friday. This will bring EVs’ share of global light vehicle sales to about 16.7%, up from 13.2% in 2024. This comes despite the challenges facing the EV industry, including cooling demand in some regions, higher costs, unstable battery supply chains, tariffs, and uncertain government policies.

Who’s leading? China is expected to lead in global EV market share in 2025 with 29.7%, followed by Europe at 20.4% and the US at 11.2%. India, on the other hand, is projected to see the largest growth in sales, with a projected 117% growth, followed by Europe at 43.4%.

THE SCORECARD-

Egypt has invested EGP 7.6 bn in grid development during FY 2023-2024 to accommodate added renewables capacity, according to a statement. The investments would cater to about 22.8 GW of added capacity from wind, solar, and hydropower projects that are either operational, under construction, or in the contracting phase.

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CIRCLE YOUR CALENDAR-

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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