TODAY:

Good morning, friends, and a happy Ramadan to you all. We have a fairly meaty issue this morning with updates from around the region and beyond, beginning with big news from KSA…

THE BIG CLIMATE STORY- Saudi Arabia’s first EV brand Ceer expects to complete works at its electric vehicle complex within two years and has awarded a USD 1.3 bn construction contract for the complex to local contractor Modern Building Leaders

^^ We have the details on this story and more in the news well, below.

THE BIG CLIMATE STORY OUTSIDE THE REGION- The EU Environment Agency has warned countries across the continent to brace themselves for “catastrophic risks,” ranging from floods to fatal heatwaves, on the back of worsening climate change in its first Europe-wide analysis of climate-related risks. The agency urged policymakers to devise ways to overcome the systematic challenges poised to batter societies including more extensive ins. coverage, infrastructure overhaul, and protective legislation to protect laborers. The story was picked up by Reuters and The Financial Times.

---

WATCH THIS SPACE-

#1- We have an investment ticket for Scatec’s new Egypt solar project: Norway’s Scatec is investing USD 1.1 bn to build a 2 GW solar project in Egypt’s Qena — up from the initial 1 GW reported last month,according to a statement published last week. The project will be established near the aluminum factory in Nagaa Hammadi and will provide clean energy for the industrial complex. The project will allow EgyptAlum to convert to greener production at its factory in Naga Hammadi to facilitatesexports it to European countries.

What we know: The first 500 MW phase of the project will be completed within 18 months, while the second phase is set to wrap up within two years. Scatec will finance the project, conduct studies, build the plant, and install the needed equipment.

#2- Yemen has kicked off trial operations at its inaugural 120 MW solar power plant in Aden last week, Aden governor Ahmed Lamlas said in a statement last week. The trial operations will see the power plant generate between 20-30% of its operational capacity, with commercial operations set to commence within the next three months.

#3- Kuwait explores blue hydrogen production: The Kuwait Oil Company (KOC) is carrying out feasibility studies to explore blue hydrogen and ammonia production, state media outlet Kuna reported on Thursday, citing comments made by KOC deputy CEO Amina Rajab. The studies are looking to compare several methods of carbon capture from hydrogen production — including steam methane reforming (SMR), autothermal reforming and partial oxidation — with the aim of producing 1k tons of blue hydrogen daily. The feasibility studies were launched in line with KOC’s five initiatives aimed at slashing the country’s CO2 emissions and achieving carbon neutrality by 2050.

#4- Aramco + Adnoc are eyeing lithium mining from brine: The UAE’s Abu Dhabi National Oil Company (Adnoc) andKSA’s Aramco — the largest national oil exporter in the world — are looking to profit off the EV industry by extracting lithium from brine in their oil fields, Reuters reported Friday, citing sources with knowledge of the matter. The two oil companies are reportedly in the early stages of extracting lithium — a key component in EV battery production — although the type of direct lithium extraction (DLE) technology was not specified. American oil giants ExxonMobil and Occidental Petroleum are also aiming to utilize new technologies to extract lithium from brine.

#5- EU nations exit energy charter treaty: EU countries have collectively decided to withdraw from the 1998 Energy Charter Treaty (ECT) due to concerns that it undermines efforts to combat climate change, Reuters reported on Thursday. The final decision is now awaiting approval from the European Parliament. The UK pulled out of the ECT last month, following in the footsteps of several other European countries — including Denmark, France, Germany, the Netherlands, Poland, and Spain — who announced plans to depart from the treaty over its strong protections of fossil fuel projects. Italy withdrew from the ECT in 2015.

Attempts to retain members with an updated treaty: The EU Commission attempted to leave room for member states to remain in an “updated version” of the ECT last year. Countries like Cyprus, Slovakia, and Hungary had signaled preference to remain in a modernized version of the energy treaty to remain in the accord.

#6- HD Hyundai sets up maritime nuclear energy watchdog: South Korea’s HD Hyundai Shipbuilding & Offshore Engineering revealed that it has established a London-based international regulatory body — called the Nuclear Energy Maritime Organization (Nemo) — aimed at regulating and standardizing the deployment, operation and decommissioning of nuclear energy within the maritime sector, Business Korea reports. Comprising 11 founding nuclear companies from seven countries, the organization will collaborate with the International Maritime Organization and the International Atomic Energy Agency (IAEA) to “serve as a cornerstone to advance the era of offshore nuclear power,” Nemo’s inaugural chairman and IAEA’s former safety division head, Mamdouh el-Shanawany said.

#7- South Korea is set to become the first Asian country to offer carbon-linked financial products to retail investors, Bloomberg reported on Thursday. In collaboration with Korea Exchange and local securities firms, South Korea’s Environment Ministry announced that it will launch exchange-traded notes (ETNs) linked to carbon allowances by August this year. This comes in efforts to boost the country’s emissions trading market beyond only corporate polluters and brokerage firms, allowing retail investors to gain exposure to the market and hedge against price volatility.

What are ETNs? ETNs are types of unsecured debt securities or bonds that track an underlying index of securities and trade on a major exchange like a stock. ETNs pay out based on the performance of an underlying index, in this case the carbon market. The financial product can increase liquidity and participation in the carbon market, which has been struggling with low prices and oversupply of permits since 2015.

Paving the way for more carbon market expansions: The ministry also plans to introduce exchange-traded funds (ETFs) and a futures contract for carbon allowances by 2025, following the example of the European Union, which has the most developed cap-and-trade system in the world. The ministry will also revise the rules of the carbon market to reduce the number of free allowances and raise the share of auctioned permits from 2026.

COP WATCH-

COP29 host Azerbaijan is prioritizing its green sector: In response to criticisms over oil producing Azerbaijan being selected to host COP29, the Central Asian country is looking to prove how it has prioritized green growth and “demonstrate how the country turned the economy to the green direction,” soon-to-be COP29 president and Azerbaijan’s Ecology and Natural Resources Minister Mukhtar Babayev told The Financial Times. Babayez also defended the country’s selection by stating that the country is “vulnerable” to climate change and suffers from climate impacts such as water shortages and land degradation. Azerbaijan has been upping its efforts to reel in investments in its green sector, and has successfully secured agreements and inaugurated projects in partnership with the UAE and its renewables firm Masdar, amongst other regional players.

ICYMI- Azerbaijan under fire for fossil fuel expansion plans: Azerbaijan plans to expand its natural gas output by a third, to reach 49 bn cubic meters a year within nine years. The Central Asian country’s goal to ramp up exploration and production of the highly polluting fuel is expected to cost fossil fuel companies some USD 41.4 bn.

DANGER ZONE-

#1- More record breaking high-temperatures in Feb: February 2024 marked the warmest February on record globally, with an average surface air temperature of 13.54 °C, surpassing the previous record set in 2016, according to research by the EU’s Copernicus Climate Change Service. It also marked the ninth in a consecutive trend of warmest months on record, as temperatures hit 1.77 °C above pre-industrial estimates. European temperatures were 3.30°C above average and global sea surface temperatures also set a new record at 21.06 °C, up from the previous record of 20.98 °C in August 2023.

A weakening El Niño is not enough to lower temperatures: El Niño is growing weaker but its effects are expected to continue to fuel above average temperatures worldwide in the next few months. There is a 60% chance that the El Niño phenomenon will persist from March until May and an 80% chance of neutral weather patterns between April to June, according to the study.

#2- The aviation industry is “likely to miss the 2050 net zero target,” former chief executive of Amsterdam’s Schiphol airport Ruud Sondag told The Financial Times, due to the industry’s continued expansion in airfleets — projected to increase by 28% globally by 2034 to reach 36.4k aircrafts — at a rate faster than the commercialization of sustainable aviation fuel or other green alternatives. The industry will fail to achieve the targets stipulated in the Paris Agreement unless European governments intervene by raising taxes or imposing caps on flights, according to Sondag, who urged that “we need to do something. And if that’s a standstill [in air travel growth] for the time being. [Then] Okay.”

#3- EVs won’t be the holy grail of green auto infrastructure: Despite hopes being pinned on EVs to help reduce climate pollution around the world, a global transition to using an all-EV fleet would “perpetuate the worst impacts of cars and auto infrastructure,” ranging from deaths to noise pollution to fossil fuel emissions, Bloomberg reported last week, citing a recent study published in ScienceDirect. The study concludes that since the worst of “car harms,” such as deaths and environmental impacts are, in part, the result of “the system prioritizing speed over safety,” switching to EVs is unlikely to fix the problems that are built into the transportation system and mobility infrastructure.

***

YOU’RE READING ENTERPRISE CLIMATE, the essential MENA publication for senior execs who care about the world’s most important industry. We’re out Monday through Thursday by 9am Cairo / 10am Riyadh / 11am UAE.

EXPLORE MORE OF ENTERPRISE ON THE WEB —tap or click here to read EnterpriseAM, EnterprisePM, Enterprise Climate, Enterprise Logistics, and The Weekend Edition on our powerful new website packed with reader-friendly features.

Were you forwarded this email? Get your own subscription without charge here or reach out to us on climate@enterprisemea.com with comments, suggestions and story tips.
***

CIRCLE YOUR CALENDAR-

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.

The UAE will host The Electric Vehicle Innovation Summit from Monday, 20 May to Wednesday, 22 May in Abu Dhabi. The event will see industry leaders come together to discuss sustainable mobility and tapping into groundbreaking advancements in electric vehicles while engaging with key decision-makers.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.