Good morning, friends. It’s an exciting day for Egypt as the country finally launches Africa’s first carbon market, two years after laying the groundwork. Saudi is also in line to develop another 2 GW facility, and Empower continues its district cooling expansion in the UAE. Let’s dive into all the details below.

THE BIG CLIMATE STORY OUTSIDE THE REGION- There’s no single story shaping the conversation this morning, but the UK energy regulator Ofgem has approved a EUR 3.4 bn (USD 4.4 bn) funding package to build an electricity “superhighway” under the North Sea to connect Scotland and northern England. This comes as part of a larger plan to fast-track the development of offshore wind power projects. The Eastern Green Link 2 project — which will begin to be constructed later this year and is scheduled for operation in 2029 — will enable clean wind power produced in Scotland to be exported to England to bridge any gaps in energy supply. The 500 km cable will power up to 2 mn homes. Reuters and Bloomberg picked up the story.

COP WATCH-

Phasing out fossil fuels misses the text again: Nearly 80 Nobel prizewinners and former world leaders have raised concern regarding the removal of specific mentions of fossil fuel phase out from a revised draft of the UN climate pact that will be presented at the Summit of the Future in New York next month, The Financial Times reports. The change has alarmed climate leaders, including former Irish president Mary Robinson and Bangladesh’s Chief Adviser Muhammad Yunus, who urged the UN to include robust commitments to phase out coal, oil, and gas extraction in line with the Paris Agreement.

Not a good sign for COP29: The UN’s Summit of the Future will be a “critical” chance for member states to address global issues such as sustainable development, technological cooperation, and climate change, the FT writes. However, the omission of fossil fuels from the draft pact has raised concerns regarding the global commitment to phasing out fossil fuels and achieving net zero by 2050. The upcoming COP29 summit is also another crucial moment for climate discussions, but the failure to include fossil fuels in the UN climate pact could signal uncertainty about the global commitment towards the transition.

WATCH THIS SPACE-

#1- Enec could cooperate with the Philippines on nuclear energy: The Emirates Nuclear Energy Corp. (Enec) and the Philippines are exploring a potential partnership to introduce nuclear power to the Philippines’ energy mix, the Philippine News Agency reported. Enec Chairman Mohamed Al Hammadi held a phone call with Philippines President Ferdinand R. Marcos Jr. in Manila, where the latter stressed the urgent need to explore nuclear energy for power generation.

#2- US green subsidy delays expected to hit European hydrogen firms: Thyssenkrupp Nucera, the hydrogen arm of the German industrial engineering giant Thyssenkrupp, anticipates delays in the passing of green hydrogen subsidy laws under the US’ Inflation Reduction Act, Reuters reports, citing comments by company CEO Werner Ponikwar. The delay is expected to persist until after the US presidential election, making it challenging to predict the future of hydrogen projects. While the EU has over 1.4k hydrogen projects planned, only 7% have reached final investment decisions.

Thyssenkrupp is feeling the brunt of the uncertainty: The company reported a slowdown in growth in 3Q due to regulatory uncertainties impacting investment decisions. Despite announcing new projects, the company noted that unresolved regulatory issues and slow funding commitments have delayed final investment decisions for necessary electrolysis capacities. The uncertainty led the company to scrap its outlook for the alkaline water electrolysis business division, and its shares to drop by half since it went public last year.

This has been an ongoing issue: The company also reported a decline in demand for green hydrogen equipment in May which was a signal that the industry is facing headwinds.

WORTH READING-

USD bns “scale gap” in climate tech deployment hinders the green transition: Climate technologies face significant challenges in achieving commercial adoption due to the need for multiple early-stage deployments — such as hardware, software, and infrastructure integration — creating a gap in the resources needed to scale up projects underdevelopment, according to a new report (pdf) co-written by Boston Consulting Group’s (BCG) tech and design unit BCG X, and non-profit investor Elemental Excelerator. The estimated USD 150 bn “scale gap” is worsened by issues like lack of technical resources, high costs, and risk-averse investment climates.

Next steps: Diverse funding sources, government incentives, and public-private partnerships are necessary to help bridge the gap, Partner and Associate Director of BCG Faysal Taher told Zawya. Sovereign funds and state-owned companies, particularly in the Middle East, are key players in advancing climate technology on a global scale, he added. As financing for climate tech evolves, increased public and private capital is expected to drive further innovation and commercial adoption.

DANGER ZONE-

#1- Morocco water crisis reaches new levels: Morocco’s water reserves have significantly declined, with filling rates dropping to 27.87%, Hespress reported, citing data from the Directorate General of Water Engineering. During the same period last year, dams reached a filling rate between 31-32% but high summer evaporation rates and siltation have made that number even lower in recent months, with 63 dams across the country feeling the impact. Moroccan cities, including Casablanca, are now experiencing low water flow and limited bathroom access, with southeastern and eastern regions most affected.

REMEMBER- Water scarcity has been an ongoing problem in Morocco: Morocco has experienced five years of drought. Water inflows declined in the country from 2.5k cbm per capita annually in 1960 to 620 cbm in 2020, placing Morocco in a situation of structural water stress. Last year the country approached the absolute water scarcity threshold of 500 cbm per capita per year.

#2- Iraq is losing a lot of agricultural land: Iraq has lost approximately 60% of its irrigated agricultural lands due to severe water shortages and climate change, the Iraqi Agriculture Ministry’s spokesperson Mohamed Al-Khuzaie told Shafaq News. The drastic reduction forced the ministry to scale back its winter wheat cultivation plans to cover just 1.5 mn acres of land. The ministry expanded farming into desert areas, utilizing groundwater irrigation systems in response to the challenges. However, Iraq remains one of the countries most affected by climate change, with water levels in the Tigris and Euphrates rivers reaching unprecedented lows.

REMEMBER- Iraq’s water reserves are in dire straits: Last year, Iraq’s reservoir capacities were at the their lowest levels in decades — half of levels recorded in 2018 — as neighboring Iran and Turkey continued to hike domestic flows from local dams on the Tigris, Euphrates, and other waterway channels. Iraq will only be able to meet 15% of its water demands by 2035 if current trends continue,

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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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