Good morning, folks. It’s a calmer morning on the regional climate front, with a good news update from Saudi Arabia clean tech research and development sector and movement on Kuwait’s Warba Bank recent green sukuk issuance.

THE BIG CLIMATE STORY OUTSIDE THE REGION- There’s no single story shaping the conversation this morning, but the revision of Danish wind turbine developer Vestas earnings outlook grabbed some ink. The company has revised its full-year income margin and revenue outlook after seeing losses in 2Q citing sustained inflation, increased repairs, upgrades, and operational inefficiencies as reasons for a one-off EUR 300 mn hit to its service business. Vestas now expects a full-year operating income margin of 4-5%, down from the previous 4-6%, and has narrowed its revenue outlook to EUR 16.5-17.5 bn. The announcement led to a 5% drop in Vestas’ shares. Despite the challenges, Vestas reported an improvement in its core wind turbine sales, with an earnings margin increase of nearly 8% in 2Q y-o-y. Reuters and Bloomberg picked up the story.

WATCH THIS SPACE-

Ewec opens registration for 3Q Clean Energy Certificates: Emirates Water and Electricity Company (Ewec) has opened registration for its 3Q 2024 auction of Clean Energy Certificates (CECs) in Abu Dhabi, according to a statement. CECs enable companies to reduce Scope 2 emissions. The auction will close on 13 September.

Introducing wind: For the first time, wind energy CECs will be part of the auction. This follows Ewec’s power purchase agreement with Masdar in 4Q 2023.

REFRESHER- CECs prove renewable energy production: In line with the International REC Standard, CECs are tradable clean energy tracking digital certificates representing 1 MWh of clean energy delivered to the electricity grid from a renewable energy source. Unlike carbon credits that reduce greenhouse gas emissions, RECs offset non-renewable electricity use. In Abu Dhabi, CECs serve as the sole mechanism to ensure the use of clean energy.

Egypt’s CI Capital can trade in carbon emissions reduction certificates in the voluntary carbon market after it got the greenlight from the Financial Regulatory Authority, according to an EGX bulletin.

The first of many: EGX already approved asset management firm Beltone Financial’s request to trade in carbon emission reduction certificates in July. Officials from seven companies have expressed their intention to apply for the FRA’s approval to trade in carbon emissions reduction certificates and futures contracts in the voluntary carbon market, including Mubasher Financial Services, Arab African International Securities, Bank Audi’s Arabeya Online brokerage, Pioneers Brokerage, and Cairo Financial Holding’s brokerage arm Cairo Capital Securities.

ICYMI- Egypt’s VCM is making strides: The FRA issued the registration and delisting rules for companies looking to sell certified carbon credits on the EGX back in March.

The Jordan Standards and Metrology Organization (JSMO) has set the accreditation conditions for used EV inspection centers, Al Mamlaka reports. These standards — which were developed after consultations with relevant stakeholders such the Chamber of Commerce and the Free Zone Investors Commission — aim to ensure that centers are properly licensed, equipped, and staffed to assess the condition of used EVs, in efforts to guarantee their reliability before they are imported.

What we know: Centers will have to prove that they have the experts, technicians, equipment, and technology needed to conduct the inspections, the news outlet noted. The organization will also have to be established in accordance with Jordanian legislation — including obtaining the necessary licenses — and will need to hire an examination service as a third party to ensure neutrality in all examination services.

REMEMBER- Jordan led the region in EV sales: Jordan saw the highest share of electric vehicle sales in the Middle East in 2023 at over 45%. The country’s EV industry is supported by lower import duties than those imposed on cars with fuel engines. The UAE came in at a distant second at 13%.

WORTH READING-

Climate risk models face scrutiny as discrepancies emerge: While technology has advanced our ability to calculate climate risks, varying and inconsistent predictions are emerging as the service becomes more abundant, Bloomberg reports. Many climate hazard prediction startups are receiving venture capital support with increasing uptake by risk assessors — like Zurich Insurance and Moody’s — to inform decisions, but due to a lack of verification, some of these risk assessments might be inaccurate. This could potentially harm communities, particularly those of lower income. Experts are now calling for more transparency and stricter verification measures as they question whether private or public companies should take the lead.

THE ENTERPRISE FINANCE FORUM-

Are you planning to be in Egypt on 24 September? You may be interested in attending our 2024 Enterprise Finance Forum. Seating is strictly limited at our flagship, invitation-only forum for C-suite executives and other senior leaders.

Why attend? We’re in the early days of a generational realignment of power in our industry — in our region and beyond — and on the cusp of the biggest intergenerational transfer of wealth the world has ever seen. With that as the backdrop, we’re going to take stock of where we stand six months after the float of the EGP and ask what’s next for finance in Egypt and the wider region. Among the questions we’ll be asking:

  • What roles will Egypt, Saudi and the UAE play in the regional industry going forward?
  • What are foreign investors looking for right now?
  • Is real estate the only asset class in Egypt?
  • What does the next generation of leaders think as they take over established family businesses?

Do you want to request an invitation? Tap or click the image below.

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CIRCLE YOUR CALENDAR-

The UAE will host the World ESG Summit from Tuesday, 20 August to Wednesday, 21 August in Dubai. The summit will gather experts and industry leaders to explore new ways to integrate Environmental, Social, and Governance (ESG) principles into business practices.

Turkey will host the International Conference on Clean and Green Energy Engineering from Saturday, 24 August to Monday, 26 August in Izmir. The event will gather researchers and professionals to share advances in clean energy. It will also offer a platform to discuss the latest research, practices, and applications in clean and green energy engineering.

The UAE will host the World Utilities Congress from Monday, 16 September to Wednesday, 18 September in Abu Dhabi. The event will gather global energy leaders, policymakers, innovators, and industry professionals from the power and water utilities value chain to discuss industry trends and challenges.

Saudi Arabia will host the EV Auto Show from Tuesday, 17 September to Thursday, 19 September in Riyadh. The show offers a platform for participants to learn about the latest EV technologies and services.

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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