Good morning, folks. We have a compact issue this morning full of green financing updates from across the region and beyond. Shall we?

PSA-

Khaleeha wa Gadedha launches: Egyptian NGO and incubator Nahdet El Mahrousa and the Arabian Cement Company have opened applications for a new accelerator program to help green startups scale up efficiently and sustainably. The program will provide startups with customized capacity-building training, access to a network of experts, and non-equity impact investment funding of up to EGP 300k. The deadline for applications is March 2.

The Mega Green Accelerator is open: Saudi petrochemical company Sabic, the UAE’s AstroLabs, PepsiCo and other strategic partners are accepting applications for their Mega Green Accelerator until 15 March to support climate-focused regional startups across MENA, according to a statement published last week. The accelerator will provide a six-month mentorship to companies focused on clean energy, water, and agritech solutions and extend seed funding to one startup at the close of the program.

WATCH THIS SPACE-

#1- Abu Dhabi forecasts nearly net-zero water production by 2031:Abu Dhabi’s plans to advance its renewables-powered desalination technology in parallel to increasing the renewables share in its energy mix will lead to a 93% push down in the carbon intensity of the Emirates water production by 2031, the Emirates Water and Electricity Company (Ewec) forecasted in its Statement of Future Capacity Requirements for 2024-2037 published on Thursday.

Ewec’sdesal and solar expansion plans: The company says Abu Dhabi will add an average of 1.4 GW renewables installations annually through to 2037 — to a total of 19 GW — which will power desal stations. Solar production capacity alone is on track to reach 7.5 GW by 2030, and renewables are set to account for over 50% of the Emirate’s electricity mix by 2030, according to Ewec’s projections. Ewec is recommending substantial desal additions starting 2028 onwards in a bid to meet 92% of domestic water demand, with plans to expand daily output to more than 3.5 mn cbm by 2031.

Substantial carbon cuts: The addition of 1.4 GW of renewables to power desal plants is predicted to bring down Ewec’s CO2 footprint from 16 kg/cubic meter (cbm) in 2021 to less than 1 kg/cbm by 2031. The company also projects that renewables-powered RO and solar expansions, coupled with the provision of grid stability services by batteries, will halve Abu Dhabi’s total CO2 emissions from annual levels of 42 mn tons per annum (MTPA) in 2019, to approximately 22 MTPA by the mid-2030s. Power emissions intensity is forecast to fall from 330 kg per MWh in 2019 to 190 kg/MWh by 2030.

#2- BP is eyeing Egypt’s green fuels and renewables market: British oil and gas giant BP is exploring with Egypt’s Electricity and Renewable Energy Ministry investment opportunities in the country’s green hydrogen and clean power production sectors, according to a statement published last week.

BP already has plans in MENA: The oil and gas firm was among the seven companies and consortiums that began conducting feasibility studies on new green hydrogen and ammonia projects in Egypt back in 2022, and BP Alternative Energy Investments also signed two agreements last year to develop green hydrogen plants over in Oman; one in Duqm spanning 320 sqkm, and the other in Dhofar on an area of 427 sqkm. Each project is planned to generate 150k tons of green hydrogen annually.

IN OTHER EGYPT NEWS- Egypt’s Electricity and Renewable Energy Minister Mohamed Shaker met with the European Investment Bank’s VP for the Levant Inmaculada Martinez to explore financing opportunities for renewables, grid connection/control system, and green hydrogen projects, according to a separate statement published on Thursday.

#3- EV makers are still in trouble: Abdul Latif Jameel and Amazon-backed EV maker Rivian expects its production capacity to remain flat y-o-y to 57k units in 2024 — well below previous analyst estimates of 81.7k EVs, it noted in a disclosure (pdf) to Nasdaq last week. Rivian’s decision comes in efforts to cut costs as it faces a slump in demand for its EVs, which contributed to its reported USD 1.52 bn in net losses for 4Q 2023, and USD 5.43 bn for the full financial year. The company says it will lay off 10% of its workforce and expects to shut down production for several weeks in 2Q 2024 to upgrade its production line, improve efficiency, and cut costs.

Mercedes is also trimming down its sales and profit expectations: Mercedes-Benz is forecasting a 2.6% drop in its automaking margin to as low as 10% from 2023 levels, and is paring back EV sales expectations as combustion engines are projected to remain more affordable than EVs for years to come, Bloomberg reported on Thursday. The luxury brand expects EVs will remain stuck at between 19% and 21% of its sales this year, and has downsized its medium-term outlook for expansion of the tech, to account for half of it in the second half of the decade rather than in 2025.

And so is Volkswagen: German carmaker Volkswagen (VW) may put its planned EUR 3 bn EV battery plant in Spain on hold due to high EV prices that have caused a drop in local EV demand across the EU, CEO of VW brands Seat and Cupra Wayne Griffiths told Bloomberg last Thursday. VW was planning to earmark EUR 7 bn to set up a battery supply chain in Spain, with plans to dedicate half of its workforce toward compact EV production. “I’m very worried. Next year I will be making electric cars, but for what? If it’s only 5% of the market,” Griffiths said. EVs comprised 5.6% of new car sales in Spain last year and 14.6% across the bloc.

#4- UK pulls out of energy charter treaty: The UK has announced its intentions to exit the international energy charter treaty (ECT), following in the footsteps of several other European countries, Reuters reported on Thursday. It cited criticism that the treaty impedes climate change mitigation efforts by safeguarding investments in fossil fuels, allowing companies to challenge government policies aimed at phasing fossil fuels out.

We knew this was coming: The UK first mentioned pulling out of the treaty last September, when Energy Minister Graham Stuart expressed that the treaty “will not support those countries looking to make the transition to cleaner, cheaper energy sources and could even penalize our country for being at the forefront of those efforts.” The UK’s Climate Change Committee recommended Britain quit the ECT last July citing risks to achieving a timely climate transition and protecting taxpayer money.

#5- Switzerland urges the UN to study solar geoengineering: Switzerland has called for an expert group to gather information and advise on the “risks, benefits and uncertainties” in a wider study on the potential impacts of solar geoengineering, The Guardian reported on Thursday. The controversial technique aims to cool the planet by reflecting sunlight back into space and will be discussed at the UN environment assembly in Nairobi this week.

The tech is risky: Solar geoengineering has been gaining attention and funding in recent years, especially in the US, where philanthropist Bill Gates is among the supporters of the Harvard solar geoengineering research program. Many environmental groups and scientists have warned that such a technology could have unpredictable and harmful consequences for the climate, biodiversity, and food security. They have also argued that it could undermine efforts to reduce greenhouse gas emissions and create a moral hazard.

#6- China has introduced new ESG disclosure rules for its largest companies in a bid to attract foreign investment and align with European standards, Bloomberg reported last week. The rules will require more than 400 firms to publish sustainability reports by 2026, covering their environmental and social impact, as well as their energy transition plans. The new guidelines are expected to improve transparency and reduce greenwashing risks for investors while boosting the ESG market in China which could support the green transition of high-emitting sectors.

Rising CO2 emissions are endangering climate goals: China is falling short on all of its climate targets for 2025 despite its clean energy sector contributing to the country’s economic growth, according to an analysis by Carbon Brief published on Thursday. CO2 emissions from China’s energy sector rose 5.2% in 2023, meaning it would need to slash its emissions by a record 4-6% if it were to achieve its 2025 carbon intensity target. China’s pledge under the Paris Agreement — which it updated in 2021 — commits the country to lowering coal consumption by 18% and upping the share of non-fossil fuel energy sources to 25% by 2025.

Demand for coal power and oil drove emissions up: The two main forces behind the rise in emissions were the increased supply of coal-fired power — which rose by 6% in 2023 — and the increased oil consumption — which rose by 8% in the same period. Low hydropower operating rates were partially behind the growth in coal operations, though they are expected to recover in 2024. Oil consumption rebounded from a temporary slump during China’s Zero-Covid policy and a global increase in gas prices in the years after.

Even green tech manufacturing is partly responsible for the surge: The increase in clean energy manufacturing — mainly in solar PV and batteries — contributed to about 1% of total emissions because of energy-intensive processes. Thus, without the clean energy expansion, China’s emissions would have risen 4.2%.

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CIRCLE YOUR CALENDAR-

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.

The UAE will host the World Future Energy Summit from Tuesday, 16 April to Thursday, 18 April in Abu Dhabi. The summit will address solutions for development in the transformation of future energy systems. The summit will also feature discussions on recycling, waste-to-energy, and air-to-water trends and progressions.

The UAE will host the Connecting Green Hydrogen MENA event from Tuesday, 23 April to Thursday, 25 April in Dubai. The event will explore green hydrogen partnerships, policies, and practices in the region, in parallel to a showcasing of the latest in the clean fuel’s technology.

Oman will host the Oman Sustainability Week from Sunday, 28 April to Thursday, 2 May in Muscat. The event will focus on exploring investment opportunities and implementing best practices in sustainability within the energy, water, and environmental 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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