Good morning, ladies and gentlemen. We’re three days into COP29, with today running under the theme “Energy, Peace, Relief and Recovery.” Since the climate summit kicked off on Monday, we’ve seen a slew of agreements and financing pledges, while international leaders express their disappointment about climate inaction.

MEANWHILE- We have lots more news from Masdar and Acwa Power, both of which are making progress on separate renewable energy projects in Azerbaijan and Uzbekistan.

THE BIG CLIMATE STORY OUTSIDE THE REGION- CO2 emissions to hit record high in 2024: Global carbon emissions from fossil fuels have surged to a record 37.4 bn tonnes in 2024, marking a 0.8% increase from the previous year, according to the Global Carbon Project. Despite the urgent need to reduce emissions to combat climate change, the report highlights that there is still no indication of a peak in fossil CO2 emissions. Combined with emissions from land-use changes, total CO2 emissions are projected to reach 41.6 bn tonnes. The report also notes that while some countries are making progress in reducing emissions, global efforts remain insufficient with emissions from coal, oil, and gas all projected to rise in 2024.

The story made headlines in the international press: Reuters | Bloomberg | Axios | CNN | EuroNews

COP WATCH-

“2024 — a masterclass in climate destruction.” With that sound bite, UN Secretary-General António Guterres criticized world leaders at COP29, painting a stark picture of the human toll of climate inaction, according to The Guardian. Guterres pointed to families fleeing hurricanes, workers suffering from extreme heat, and children going hungry as droughts devastate crops. Highlighting the increasingly severe impacts of human-made climate change, he called for urgent action to prevent further disasters and safeguard vulnerable communities.

COP Host and Azerbaijan President Ilham Aliyev defended his country’s oil and gas industry against Western criticism, describing it as a “well-orchestrated campaign of slander and blackmail,” Reuters reports. Aliyev emphasized the need for realism in the green transition, arguing that countries should not be blamed for utilizing their natural resources. “As a president of COP29 of course, we will be a strong advocate for green transition, and we are doing it. But at the same time, we must be realistic,” he added.

The message wasn’t well received: This stance was met with opposition from Guterres, who called the continued reliance on fossil fuels “absurd,” the newswire says. “Using a climate conference to promote the continued production and use of fossil fuels is … provocative, and deeply disrespectful to the countries on the frontline of climate impacts,” Oil Change International’s global policy lead Romain Ioualalen said.

The US also came to oil and gas’ defense: Growth in US oil and gas output helps further the green transition, White House national climate adviser Ali Zaidi told Bloomberg at COP29. The crude products ensure that there is “energy availability for the demand that exists on the market today — no shocks, no upward price pressure,” he added. “It doesn’t matter what your energy mix is today; we can all travel the distance and get there and keep 1.5°C within reach.” The US recently produced record levels of oil and gas, surpassing Saudi Arabia.

Bangladesh leader blames rich nations for climate change: Bangladesh’s interim leader Muhammad Yunus has strongly criticized wealthy nations at the COP29 urging them to take full responsibility for the climate crisis, the Associated Press reports. He argued that countries responsible for global warming should provide the necessary funds to address the issue, rather than negotiating at climate talks. He likened the negotiations to a “fish market” and emphasized that the climate crisis affects everyone, including rich nations. Yunus highlighted Bangladesh’s vulnerability to climate change, with significant risks from rising sea levels and cyclonic storms. He pledged to focus on clean energy projects and climate protection during his tenure.

Europe needs more resources for green transition: Although Europe is at the forefront of the green transition, the continent needs more resources to handle unprecedented climate shocks, Greek PM Kyriakos Mitsotakis said during COP29, Reuters reports. Mitsotakis feels that despite being a global green leader, Europe is standing alone in its efforts to protect its economy as the green transition “goes very fast at the expense of our competitiveness.” “We cannot focus so much on 2050 that we forget 2024,” he added.

US asks EU to align methane regulations: The Biden administration requested that the EU align its methane regulations with those of the US to facilitate the flow of liquefied natural gas (LNG) between the two regions, according to a letter seen by Reuters. The request aims to ensure that US LNG exports meet EU standards. The EU plans to impose methane limits on oil and gas imports by 2030, pressuring suppliers to reduce emissions. The Biden administration’s methane rules, enforced by the EPA, are part of a broader effort to cut global methane emissions by 30% this decade.

The economic toll of the climate crisis is carving up to 5% off GDP in many countries and exacerbating the cost-of-living crisis, UN Climate Change Executive Secretary Simon Stiell stated at COP29. He emphasized the urgent need for bold climate action and urged world leaders to prioritize climate finance as a means to combat global inflation and to avoid the mistakes made during the pandemic. Stiell called for immediate and collective action to prevent further economic and environmental damage and encouraged leaders to engage directly in negotiations to achieve a robust global climate finance goal.

The solution? IMF can sell gold to pay for the climate crisis: The International Monetary Fund (IMF) is being urged to sell a portion of its gold reserves to provide debt relief to low-income countries affected by climate-related disasters, Reuters reports. A study by the Boston University Global Development Centre suggests that selling 4% of the IMF’s 90.5 mn ounces of gold, currently valued at over USD 2.6k per ounce, could generate USD 9.52 bn. This amount would significantly bolster the IMF’s Catastrophe Containment Relief Trust (CCRT), which currently has only USD 103 mn available and covers just 30 countries. The researchers argue that the CCRT’s limited funding and restrictive eligibility criteria prevent many climate-vulnerable nations from accessing necessary relief.

COP29 SCHEDULE-

Here’s a handy guide (pdf) for the main thematic days and what to expect and a full rundown of all the panels, workshops, discussions, debates, and keynote speeches.

DAYS TO LOOK FORWARD TO-

15 November: Energy, Peace, Relief and Recovery

19 November: Food, Agriculture and Water

21 November: Nature and Biodiversity, Oceans and Coastal Zones

22 November: Final Negotiations

WATCH THIS SPACE-

#1- RVCMC’s platform auctions gain traction: Saudi’s Voluntary Carbon Market (RVCMC) exchange platform’s carbon credits auction has seen a surge in participation from Saudi companies, with 20 out of 23 companies involved in the latest round of carbon credit trading, RVCMC CEO Riham ElGizy told Asharq Business. The participating companies, including major players like Saudi Aramco, SABIC, Red Sea Destinations and Saudi National Bank, represent a significant portion of the Kingdom’s total emissions.

ICYMI– The platform was launched during COP29: Saudi Arabia launched a new carbon trading platform, with an inaugural 2.5 mn tons of carbon credits for projects across 17 countries available for auction starting this week.

#2- Ewec opens registration for 4Q 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 December.

Ewec has been active: The company started including wind energy CECs in its auctions in 3Q this year. This followed Ewec’s power purchase agreement with Masdar in 4Q 2023. It also partnered with Adnec Group last month to secure 100% of Adnec Center Abu Dhabi’s electricity needs using its renewable energy sources.

#3- Ivory Coast to launch green finance fund: Ivory Coast is set to launch a USD 500 mn green finance fund to support sustainable growth initiatives, according to an IMF press release. This fund, part of the African Green Banks Initiative, aims to create a USD 1.5 bn ecosystem of green investment facilities across Africa by 2030. The fund will be capitalized by public sources, including the Ivorian government, the Green Climate Fund, and various development banks, with potential private contributions. The country is also trying to draft new laws to establish a body to oversee the management of carbon credits, Reuters reports.

#4- Major ocean freight dependent companies show support for green fuel: About three dozen companies dependent on ocean shipping — including Amazon and IKEA — formed a group called the Zero Emissions Maritime Buyers Alliance and will call for bids in January on a contract to move their cargo on green fuel powered vessels, Reuters reports. The alliance hopes to increase demand for e-fuels such as e-methanol which currently lack in supply. The three- to five-year contracts are expected to begin in 2027.

Everybody benefits: The switch to net-zero emissions e-fuels would both reduce emissions and help the member companies meet their climate goals. Combined, the alliance is responsible for the movement of over 80% of global trade and produces about 3% of the world’s greenhouse gasses. The ocean freight industry is aiming to reach net zero emissions by 2050 and major carriers like Maersk and Evergreen have already ordered ships that can operate on e-methanol and are trying to secure supplies of the fuel.

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