Good morning, folks. It’s a moderately busy morning with lots of debt news and green finance bits from around the region and beyond, but first, big moves from the Biden administration on the EV front…

THE BIG CLIMATE STORY OUTSIDE THE REGION- The US unveils new auto emissions rules: The Biden administration has issued new regulations for tailpipe emission limits for cars and light trucks in a bid to accelerate the shift towards zero-emission vehicles. The Environmental Protection Agency’s (EPA) mandates, described as the “strongest-ever vehicle pollution standards in United States history,” are expected to push automakers to significantly increase sales for EVs and plug-in hybrid models.

The story was picked up widely in the international press:Reuters | AP | Bloomberg | The Guardian | BBC | The Washington Post | The NewYork Times

COP WATCH-

Fossil fuel firms are essential to driving the energy transition and to finding a solution to the climate crisis, COP28 President Sultan Al Jaber said in a recorded speech delivered at CERAWeek. Al Jaber urged countries to adopt ambitious Nationally Determined Contributions (NDCs) covering all greenhouse gasses to achieve climate and development goals.

Different places, different paces: “Let’s keep in mind the sheer size of the energy system we are replacing — over 260 mn equivalent barrels of oil, gas and coal consumed every day. There is just no avoiding the fact that the energy transition will take time. It will happen in different places at different paces. And we need a responsible approach ensuring energy security alongside sustainability every step of the way,” Al Jaber said in the statement.

Al Jaber also received a leadership award for his efforts: The COP28 president was given the CERAWeek Leadership Award for Building Global Consensus towards a Sustainable Energy Future for his role in facilitating the conference which took place in the UAE last November, according to a press release.

WATCH THIS SPACE-

#1- S&P Global expects green, social, and sustainability-linked bonds globally “to grow modestly” in 2024 at around the USD 1.1 tn level, slightly higher than in 2023, S&P analysts forecast during a “GCC Corporate Outlook 2024” webinar yesterday. They expect a continued growth in issuances in the region after bond issuances more than doubled last year to reach USD 23 bn. Sustainable bonds issuances in the Middle East account only for less than 3% of total bond issuances globally.

Saudi and the UAE will remain top issuers of the bonds in the region driven by government-related entities in order to help meet sustainability targets and commitments. “Given the exposure of these two nations’ exposure to hydrocarbons and water scarcity, we expect green bond issuances to remain prevalent,” they said.

#2- Egypt launching new WtE project to power cement factories: Egypt’s Environment Ministry is planning to launch a new EGP 365 mn waste-to-energy (WtE) project to produce alternative fuel known as Solid Recovered Fuel (SRF) to power cement factories, Al Mal reports, citing people it says have knowledge of the matter. The plant — which will be implemented in partnership with Egypt’s private sector in the 10th of Ramadan industrial zone — will process up to 320 tons of waste daily. The expected annual return rate for the project stands at 30%, which will begin to materialize within 3 to 4 years, initial feasibility studies revealed, adding that the potential of obtaining carbon certificates contributes to its high return.

SOUND SMART- SRF production process primarily involves the treatment of non-hazardous waste, including commercial and municipal waste such as paper, cardboard, wood, textiles, plastics, and construction debris, the news outlet explained.

Who’s doing what? An undisclosed private partner will be responsible for financing, while the ministry will provide the land for the factory. The feasibility studies were conducted with the assistance of the United Nations Industrial Development Organization (UNIDO) and Chemonics Egypt.

Part of bigger plans for Egypt’s WtE sector: The Ministry of Environment is reportedly looking to implement a World Bank funded USD 126 mn integrated waste recycling complex in 10th of Ramadan City on an area exceeding 1k acres.

#3- Emirates Global Aluminum (EGA) will finish building its aluminum refining waste management plant this year, according to a statement. The aluminum producer started construction on the plant last November, aiming to use the facility to test large-scale trials for plant growth with the manufactured soil it calls Turba, and overcome the UAE’s soil scarcity. Once live, the plant will convert bauxite residue, a byproduct of aluminum refinement, into up to 6 tonnes of manufactured soil — expected to have up to ten times better carbon dioxide absorption than natural soil — daily in Al Taweelah in Abu Dhabi.

#4-Iraq will break ground on its largest solar power plant soon: Iraq has plans to build its largest solar power plant yet pending the passing of a law regarding renewable energy projects, Iraqi parliament member Sabah Subhi told Al Sabah. The law is currently under discussion and is yet to be approved by Iraq’s cabinet and parliament, Subhi added. The project will come as an addition to the 7.5 GW generation capacity from solar power projects the country has worked on over the past year.

REFRESHER- Iraq aims to sign 3.7 GW in renewables contracts this year: Iraq is planning to ink agreements to establish 3.7 GW of renewable energy by year end. The country has already signed three agreements to generate 2.4 GW of renewable energy, 500 MW of which should be operational by summer. The country is also tapping Saudi’s Acwa Power for a 1 GW project in Najaf city, and UAE’s Masdar for another 1 GW project in its western regions.

DANGER ZONE-

Only 10 countries and 9% of cities globally met the World Health Organization’s particulate pollution (PM2.5) standardsin 2023, Bloomberg reports, citing a recently released World Air Quality Report (pdf). The Middle East, Africa, and Central and South Asia were the most affected by the rise in particle emissions, the report revealed. The UAE landed in the 7th place followed lower on the list by Egypt in 9th, Kuwait 11th, Bahrain 12th, Qatar 13th, and Libya 20th. PM2.5 usually comes from burning fossil fuels and leads to 4 mn premature deaths annually.

What is PM2.5?The term references inhalable particles in the atmosphere that are usually 2.5 micrometers in diameter or smaller. A concentration of 1 µg/m3 means that one cubic meter of air contains one microgram (10-6 grams) of pollutant. Reducing PM2.5 would add an average of 2.3 years to the average human life expectancy and save an estimated 17.8 bn lives.

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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.

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