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Good morning, friends. There’s no mid-week slump in the news cycle as the COP16 UN Convention to Combat Desertification (UNCCD) rolls into Riyadh. This is the first UNCCD summit to be held in the MENA region, so we expect Saudi will roll out the green carpet and offer up lots of progress. First, a big W for environmental groups…
THE BIG CLIMATE STORY OUTSIDE THE REGION- Norway puts deep-sea mining plans on ice: Norway halted plans for a first licensing round in H1 2025 for deep-sea mining set to include 386 exploration blocks in the Arctic sea bed. The government caved to pressure from a small, minority leftwing party whose approval for the government’s budget plan was needed. Plans may not be completely scrapped, with the move described as a “postponement” until the next parliamentary term in 2026 by Norwegian Prime Minister Jonas Gahr Støre. Environmental groups celebrated the move as a major win, blasting the government’s support of ocean mining as “truly embarrassing” given its proclaimed support for the environment.
Market reax- Shares in Norwegian sea bed mining startup Green Minerals plummeted 36% after the government canceled the plans. The company’s timeline for exploration — which targets extracting its first ore by 2030 — will not be altered despite the change in plan, according to a company statement.
REMEMBER- Deep sea mining is controversial: The growing mining industry aims to extract critical minerals essential to EV battery production, including cobalt, copper, nickel, and manganese, but scientists say oceanic mining comes with a substantial impact on the environment, such as the destruction of natural habitats and undermining the ocean’s ability to capture and sequester CO2. A number of countries, including France and the UK, have called to halt the practice until there is more information on the environmental impact
The story grabbed ink in the international press: Reuters | Bloomberg | BBC | The Guardian | CNBC | Deutsche Welle | Le Monde
WATCH THIS SPACE-
#1- More regional investments from Green Coast? Dubai-based conglomerate Green Coast plans to invest USD 200 mn in Saudi’s renewable energy sector over five years, CEO Mohamed Abdulghaffar Hussein told Asharq Business. The company also said its mulling a USD 50 mn renewables and infrastructure investment push in Egypt over the next three years earlier this week.
#2- Egypt is exploring the possibility of exporting electricity to Syria through its interconnection link with Jordan, Egypt’s Electricity Minister Mahmoud Esmat told Asharq Business. The plan hinges on stabilizing the security situation in the country and Egypt’s electricity production vs consumption. An unconfirmed report citing a government official earlier this week pencilled in either 2029 or 2030 as when the country will finally be able to close the gap between domestic production and consumption.
ALSO- BP to invest in Egypt’s renewable energy sector? BP CEO Murray Auchincloss signaled the company’s intent to invest in Egypt’s renewables sector and expand its existing hydrocarbon interests in the county in a meeting with President Abdel Fattah El Sisi and Oil Minister Karim Badawy.
#2- UK pledges GBP 1.98 bn in climate finance: The UK is increasing its climate finance contribution to the World Bank (WB) by 40%, pledging GBP 1.98 bn over the next three years, The Guardian reports. The move — revealed ahead of a meeting of the WB-member International Development Association (IDA) in Seoul — aims to enhance climate finance for low-income countries. “Leaders of low-income countries around the world called for stronger IDA contributions and we listened.” said the UK’s Development Minister Anneliese Dodds. The move was welcomed by the Green Climate Fund and UK-based climate campaigners. The announcement follows the contentious Cop29 UN climate summit that saw developed nations agree to provide an underwhelming USD 300 bn of the USD 1.3 tn needed annually to combat climate change in developing countries by 2035.
#3- Namibia holds up green bonds sale due to delayed EU support initiative: Namibia is pushing back plans to sell green bonds to fund renewable energy and hydrogen projects due to the EU delaying the financial close of its Global Green Bond Initiative (GGBI), Bloomberg reports, citing an email response from Finance Minister Iipumbu Shiimi. The delay in EU’s GGBI — an initiative that supports EU partners in developing green bond markets by providing technical support and de-risking investments — has undermined the “technical support and capacity-building processes” that the Namibian government was banking on to “enhance readiness for larger-scale issuances,” the minister told Bloomberg. The country’s Environmental Investment Fund plans to set up a green bonds office and list the green debt on the Namibian and Johannesburg stock exchanges, but the specific targeted amount it has planned to raise has not yet been finalized.
Namibia is positioning itself as a global green hydrogen leader: Namibia is expected to provide Europe with 750k tons of green fuel annually, and Europe’s second largest port Antwerp Bruges plans to develop a EUR 250 mn hydrogen and ammonia storage and export facility in Namibia’s Port of Walvis Bay. The facility will store and ship hydrogen and ammonia from companies to refuel passing ships and be used for heavy industry operations in Belgium, Germany, and other European countries. In March, Germany said it would provide more financial support for Namibia’s USD 10 bn green hydrogen project Hyphen.
THE SCORECARD-
The steel industry is falling behind on energy transition: The world’s biggest steelmakers relied on fossil fuels for 99% of their energy between 2022 and 2023 despite the availability of alternative technology, such as electric arc furnaces (EAFs) or green hydrogen, Reuters reports, citing a report (pdf) by Sydney-based climate group Action Speaks Louder (ASL). While EAFs accounted for 28.6% of global steel production in 2022, green hydrogen-based production remained at zero percent.
Why it matters: The “hard to abate” sector accounts for 7% of global carbon dioxide emissions, with affordability standing in the way of its decarbonization, says ASL strategy director and survey author Laura Kelly. To achieve net zero emissions by 2050, the International Energy Agency says that at least 44% of the world’s steel production needs to come from green hydrogen and EAFs, and recycled scrap metals must account for 48% of the production’s input.
About the study: The ASL survey looked at the renewables adoption rate in 18 producers from major steel-producing countries and regions, picking the top 3 players in China, the EU, India, Japan, the US, and South Korea. Five failed to have adequate energy information to begin with, and seven did not disclose electricity use figures. To address this information availability gap, the ASL looked at data from BNEF Corporate Power Purchase Agreements.
How did the companies fare: Overall, South Korea’s Hyundai Steel and Dongkuk Steel ranked last with zero renewables use, while Nordic steel company SSAB took the lead, with renewables representing 19% of its energy use. The US-based Cleveland-Cliffs came as a distant second with 2.9%.
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CIRCLE YOUR CALENDAR-
UAE will host the International Mangrove Conservation and Restoration Conference from Tuesday, 10 December to Thursday, 12 December in Abu Dhabi. The conference — happening in parallel to Riyadh’s COP16 on desertification — will gather global scientists and conservation experts dedicated to mangrove and coastal ecosystem restoration, seeking to share research, innovative approaches, and best practices for holistic restoration, including habitat diversity, connectivity, and climate resilience.
The UAE will host the World Energy Summit from Tuesday, 14 January to Thursday, 16 January in Abu Dhabi. The summit will host over 350 speakers including energy industry leaders and policymakers with discussions ranging from eco-waste to sustainable cities. An exhibition will also be held for showcasing green products.
Saudi Arabia will host the Future Minerals Forum from Tuesday, 14 January to Thursday, 16 January in Riyadh. The forum will gather stakeholders from over 170 countries to discuss mineral technology and exploration. Speakers will include senior government officials and CEOs from renowned mining companies Vale, Rio Tinto, and Manara.
Bahrain will host the Sustainability Forum Middle East from Tuesday, 28 January to Wednesday, 29 January in Manama. Climate experts and decision-makers will convene to discuss a number of issues ranging from decarbonization to supporting SMEs on their path to net zero. Speakers will include GCC government officials and industry leaders from the banking and industrial sectors.
Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.
