Good morning, friends. The week is quietly coming to a close and we have news on the solar energy front coming from the UAE. Curious whether all those agreements for green hydrogen exports to the EU are feasible? We have a deep dive on that topic further down.

THE BIG CLIMATE STORY OUTSIDE THE REGION- It’s quiet on the international climate front, but one story making a blip on the radar is news of Google joining a mission to track methane emissions from space. The tech giant is joining a satellite project led by France’s EDF which will track methane output around the world. Google will leverage Google Cloud to provide the computing capabilities to process intel and use AI to zero in on fossil fuels components including oil tanks in a bid to create a comprehensive map of methane leaks globally. The project is due to be launched next month and data from the satellite will be available through Google Earth Engine later this year.

REMEMBER- Methane is the second most abundant anthropogenic greenhouse gas after CO2, and contributes a third of global heating driving the climate crisis. New satellite analysis by The Guardian in partnership with Kayrros revealed there were over 1.25k huge methane leaks from landfills globally between January 2019 and June 2023.

The story made headlines in the international press:Reuters | Bloomberg | BBC

SOUNDBITE OF THE WEEK- “We’re going to keep burning fossil fuels and somehow magically get rid of the carbon down into the ground where there is no proof that it will stay there, but heaps of proof that it fails,” Chairman of Australia’s Fortescue Metals Andrew Forrest said at the 50th anniversary meeting of the International Energy Agency.The mining giant’s executive cautioned that carbon capture tech is “a complete falsehood,” and warned business leaders against buying into the idea that leveraging carbon capture tech will eliminate the need for a fossil fuel phaseout.

Not the first time a red flag has been waved against carbon capture: Carbon capture and storage (CCS) has largely helped drive the climate emergency. “In 2021, 81% of carbon captured was actually used to produce more fossil fuels, as it was pumped underground to force out oil and gas,” Global Witness said. The Energy Transitions Commission — which includes British oil giant BP — said in a report released in November that the role CCS plays in offsetting emissions will be “vital but limited.” Hard-to-abate industries and fossil fuel producers relying on the tech to mitigate their carbon output are laboring under a “dangerous delusion,” it cautioned.

WATCH THIS SPACE-

#1- Egypt’s carbon market inches closer: The Financial Regulatory Authority (FRA) in Egypt has authorized three bodies to verify projects that claim to reduce carbon emissions — a key step towards the launch of a voluntary carbon market, according to a statement. The FRA selected TÜV Nord EGYPT and TÜV Nord Cert — both subsidiaries of the German certification firm TÜV Nord Group — and the Egyptian Center of Organic Agriculture to take on the responsibility. The FRA formed a committee to supervise and regulate the voluntary carbon market last April. The new regulator’s mandate includes establishing a rulebook outlining the requirements for issuing carbon credits, mapping out the greenhouse gas disclosure schemes companies would have to follow to verify their carbon output, and setting out the criteria for selecting verified carbon crediting bodies.

ICYMI- The EGX said it planned to set up Africa’s first voluntary carbon market back in 2022. The market would allow companies in Egypt and Africa working on emissions-reducing projects to sell certified carbon credits, which can then be bought by other companies wanting to offset their emissions.

#2- Germany wants to support regional green hydrogen projects: The German Federal Ministry for Economic Cooperation and Development (BMZ) has launched a call for proposals for its EUR 270 mn Power-to-X Development Fund to support green hydrogen production projects, Morocco World News reports. Egypt and Morocco are amongst the countries eligible for the fund, which is managed by Germany’s KfW Development Bank, according to an earlier statement (pdf). The deadline for submission is on March 1.

The criteria: The grant aims to boost project profitability and facilitate additional financing opportunities for developers of industrial projects that use renewable electricity to produce hydrogen or other synthetic fuels. The fund is targeting projects exceeding EUR 100 mn and covers various stages of the green hydrogen value chain.

KfW 💚 Morocco + Egypt: Germany’s KfW Development Bank has signed two development financing agreements totalling EUR 76 mn with Egypt’s International Cooperation Ministry to be allocated to renewable energy and smart grid projects last month. The lender also inked three loan agreements totalling EUR 250 mn and two grant agreements worth EUR 7 mn with Morocco to fund projects related to social protection, green mobility, and improving irrigation efficiency.

#3- IEA unveils program to secure critical minerals for the energy sector: The International Energy Agency (IEA) is launching a program to secure the supply of critical minerals including lithium, cobalt, and copper, Reuters reports. The program is inspired by the IEA’s oil security mechanism, which requires member countries to hold 90 days’ worth of oil stocks. “Currently, we are A, not able to keep up with the demand, and B, the ability of manufacturing these critical minerals is concentrated in one single country or two,” IEA executive director Fatih Birol said.

A rebuke to China? The minerals giant is the main producer of 30 out of 50 critical materials and imposed curbs on exports of critical minerals last year to retain its dominance over the supply chain, the newswire writes. China controls over 70% of the world’s rare earth production.

#4- TotalEnergies’ CEO thinksthe IMF’s debt rules are stunting the growth of Africa’s green energy sector, Reuters reports, citing comments made by Patrick Pouyanne at an IEA government-industry dialogue. Electricity projects in the continent suffer from “a problem of solvency,” and the IMF has been cautioning governments against extending guarantees to clean energy developers for fear of debt expansions, Pouyanne said.

First-hand experience: The company has developed two solar plants in Egypt in partnership with Proparco and the EBRD and its subsidiary TotalEren also signed an agreement for a 300k ton green ammonia facility in Ain Sokhna alongside SME investor Enara Capital. The IMF’s approach has led the company to limit green transition growth on the continent to B2B mining projects because it is an industry where Total knows they will receive payment, Pouyanne said.

The problem extends beyond Africa: The company signed an agreement with the Iraqi government to develop a 1 GW solar power plant to supply the Basrah regional grid in April 2023, and said the project’s international funders wanted more loan guarantees from Iraq than Total itself, leading the company to fully self-insure the project to avoid burdening the government with additional debt, he noted.

#5- TheEU needs better direction of green funds: The EU may need to direct more private funds into sustainable investments to achieve its net-zero economy goals, Reuters reports, citing a document it has seen. The document — which seeks member state views on the EU’s financial policy for the next five years — also highlights the challenges faced by the financial services industry in creating a single market and reducing reliance on third-country providers. The EU has already introduced several rules to promote green finance, such as guidelines on sustainable investments, rules for green bonds, and mandatory disclosures for companies.

ALSO- A new study has found that EU climate policy relies too much on unproven CCS technology. The European Commission proposed to speed up the development of technologies like carbon capture and storage (CCS) in its new proposed roadmap to achieve the EU’s 2040 climate target, but the commission’s science advisers warn the technology is not ready to support the reduction targets. There are currently no fully operational CCS plants in Europe nor is there a system for governing and regulating the technology. There are 10 planned CCS projects but their combined carbon-capture capacity is expected to be less than what is needed to achieve the EU’s 2040 climate target.

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CIRCLE YOUR CALENDAR-

Egypt will host the Egypt Energy Show from Monday, 19 February to Wednesday, 21 February in Cairo. The event will gather 35k energy industry professionals and host over 80 conferences on energy transition and sustainable production.

The UAE will host the Management and Sustainability of Water Resources Conference from Monday, 26 February to Wednesday 28 February in Dubai. Water availability in arid and semiarid regions, global water issues, and future water and environmental challenges are all on the agenda.

Saudi Arabia will host the International Conference on Sand and Dust Storms in the Arabian Peninsula from Monday, 4 March to Wednesday, 6 March in Riyadh. The conference will address regional challenges caused by sand and dust storms and discuss monitoring systems, mitigation strategies, economic and infrastructural impacts, and more.

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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