Abu Dhabi to require carbon reporting from big emitters in 2026

WHAT WE’RE TRACKING TODAY

TODAY: Abu Dhabi puts a domestic carbon pricing scheme in motion

Good morning, friends. It’s a light news day as the year comes to a close, but we have fresh news on Abu Dhabi’s new carbon reporting and pricing mechanism and some updates on Algeria’s renewables push. But first, another worrying (yet unsurprising) report on climate change-driven heating…

THE BIG CLIMATE STORY OUTSIDE THE REGION- The world was exposed to an extra 41 days of dangerous and potentially fatal heat in 2024 due to climate change, according to analysis (pdf) by the World Weather Attribution (WWA) and Climate Central. Poorer developing states and nation islands reportedly experienced the highest number of additional days of dangerous heat. For example, the Caribbean and Pacific islands felt the strongest effect, with nearly 150 additional days of harmful heat. Saudi Arabia also saw 70 additional hot days. Developed countries — including the UK, the US, and Australia — were also impacted, but they were the least affected, experiencing at least an extra three weeks of dangerous heat.

Heatwaves are the deadliest of extreme events: The researchers behind the study called their data on deaths from heatwaves a “very gross underestimate” because of the likelihood of underreporting deaths due to insufficient monitoring. “It’s much harder to raise awareness that heatwaves are by far the deadliest extreme events, and they are the extreme events where climate change is a real game-changer,” report co-lead Friederike Otto said.

The story made headlines in the international press: The Guardian | CBS | BBC | AP

WATCH THIS SPACE-

#1- Saudi Aramco is in talks to secure long-term purchase agreements for blue hydrogen, which the company views as a key component of its clean energy strategy, Aleqtisadiah reports, citing an unnamed company source. The oil giant has already made strides in blue hydrogen, having finalized agreements in July to acquire a 50% stake in Blue Hydrogen Industrial Gases Company, a Jubail-based unit of Air Products Qudra.

IN CONTEXT- The Kingdom is looking to establish a global presence in blue hydrogen production, following the launch of the green hydrogen production strategy in 2020. It aims to eventually supply 15% of the world’s blue hydrogen production, PIF Governor and Aramco Chairman Yasir Al Rumayyan said in February.

#2- Egypt prepares to submit its first climate transparency report: Egypt is set to submit its first biennial transparency report (1BTR) to the United Nations Framework Convention on Climate Change (UNFCCC) in the next few days before the year-end deadline, according to a statement released on Saturday. The report — led by Egypt’s Ministry of Environment and in collaboration with the UN Development Programme — highlights the country’s efforts in tracking greenhouse gas emissions and evaluating progress on its climate efforts. It includes data from various ministries and agencies, and it covers the country’s adaptation strategies and estimating the financial support needed for climate action.

REMEMBER- Around 11 countries submitted the first BTRs as of last month, marking the full operationalization of the enhanced transparency framework under the Paris Agreement. Activating the transparency reports mechanism has been a key item in the agendas of COP28 and COP29.

#3- Algeria plans 1 GW wind power projects: Algeria is planning 1 GW wind power projects across 10 sites, following studies backed by the World Bank that show strong potential for wind energy, AL24 News reported on Thursday, citing remarks made by the country’s renewable energy chief Nouredine Yassaa during the second international workshop on renewable energy in Algiers.

There is more: The country is planning a 200 MW solar project in Tindouf province, which is set to power regional electricity needs, as well as Gara Djebilet’s iron mining projects. The country’s south is also slated to have new hybrid power plants that mix solar and diesel power.

Part of a larger push: Algerian aims to reach 15 GW of renewable energy by 2035, Yassaa said. Around 3 GW of solar developments have already been commissioned through 20 projects across the country, he added.

#4- Morocco is upping its dependence on wheat imports as a seven-year-long drought crisis deepens the kingdom’s food security struggles, Morocco World News reported on Thursday. Russia is reportedly picking up the country’s demand for wheat imports, which increased 86% y-o-y in November. Morocco’s wheat harvest is expected to drop to 2.47 mn tons this year from 3.4 mn tons recorded in 2023 — its lowest since 2008, the news outlet writes. The figures are a steep decline from the 6.1 mn tons of wheat harvested in 2022.

REMEMBER- Morocco is under major water stress: Morocco is facing a prolonged water crisis that saw the country reach the absolute water scarcity threshold of 500 cbm per capita last year. Reserves’ filling rates also dropped to 27.9% last year. The water shortage crisis is set to have major impacts on the country’s economy, with a World Bank report estimating that Morocco’s GDP losses due to different drought scenarios could range from 1.8 to 3.5 percentage points.

The country is actively addressing the crisis: Morocco’s government has implemented a national water management strategy focusing on water conservation and source diversification to address the shortage, installing water meters to prevent unauthorized water usage and expanding its desal capacity. It currently has 12 desal plants with 169.3 mn cbm capacity and plans to add seven more plants by 2027, Morocco World News reported. Last June, Morocco began constructing a USD 650 mn renewables-powered plant with a planned capacity of 300 mn cbm of water for drinking and irrigation.

#5- Yamama advances plans to establish minerals holding company: KSA’s Yamama Cement Company signed a planned non-binding MoU with Obeikan Investment Group and Sultan Holding to establish a holding company focused on investing in Saudi Arabia’s minerals industry, according to a disclosure released on Thursday. The new company will target the production of minerals such as lithium, graphite, and silica.

We knew this was coming: Yamama said it would sign the non-binding MoU to explore the joint minerals venture last week. The exploratory MoU will expire on 30 June 2025, meaning that the companies will likely have to reach a decision on whether to move on with the project or not by mid-2025.

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CIRCLE YOUR CALENDAR-

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.

Abu Dhabi to require carbon reporting for big emitters as of 2026

Abu Dhabi to implement a carbon pricing scheme: Businesses operating in Abu Dhabi that emit large amounts of carbon will be required to monitor, report, and have their scope 1 and 2 emissions verified by third parties annually, with initial reports required as of 2026, according to a statement. This is after the Abu Dhabi Environment Agency (EAD) launched an international standard carbon measurement, reporting, and verification (MRV) program to standardize greenhouse gas emissions reporting within Abu Dhabi’s industrial and energy sectors in the emirate.

(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)

The reporting program is the first step ahead of the establishment of a domestic carbon pricing scheme that aims to facilitate decarbonization in emission-intensive sectors. The UAE cabinet issued legislation earlier this year — set to come into force tomorrow — that requires firms with emissions equivalent to or more than 500k tons a year to track and report their emissions in a bid to begin regulating carbon credits, with plans to set up a National Register For Carbon Credits as the main regulator. Other emirates have yet to come out with their own monitoring systems.

The details: The program will produce data that adheres to international climate requirements, including those set by the United Nations Framework Convention on Climate Change and the Paris Agreement’s Enhanced Transparency Framework. Abu Dhabi’s rules make the UAE the first Middle Eastern country to require companies to measure their emissions, but other emirates have not yet announced their own MRV systems.

We knew this was coming: The emirate issued a decree requiring businesses licensed by the EAD to report their environmental data, including energy consumption and emissions, annually, in April, without clarifying at the time when this would take effect. Businesses will have to report on their energy, water use, and emissions in Abu Dhabi during 1Q of each year. They will also need to include information on operations, equipment, and emission control, as well as report accidents.

PLUS- Businesses operating in Abu Dhabi were also required to obtain an environmental license from the EAD and adhere to new limits for noise and air pollution in a separate decree issued in May.

The story got ink in Bloomberg.

IN OTHER ABU DHABI NEWS-

Abu Dhabi adds retail licensing for cooling providers: Abu Dhabi’s Department of Energy has rolled out a new license for retail district cooling providers, according to an announcement on Thursday. The license will be provided for market players wishing to enter the cooling market as retailers purchasing cooling services from wholesale suppliers and reselling them to end users. Providers must apply for this license by 31 January 2025 through the Emirates’ department’s unified platform.

EGA secures a green loan for Spectro acquisition

EGA secures green loan facility for its Spectro acquisition: Mubadala-backed Emirates Global Aluminium (EGA) has funded its recent acquisition of US aluminum recycling company Spectro Alloys through an undisclosed green loan facility arranged through international banks, according to a statement released on Thursday.

What we know: The new loan will help EGA access a “larger liquidity pool” to fund its low-carbon projects and optimize borrowing costs, the company said. No more details on the lenders or the loan size were made available.

REMEMBER- EGA finalized its acquisition of an 80% stake in Spectro Alloys at the end of September after inking an equity purchase agreement for the transaction in August. The value of the transaction was not disclosed.

SMART POLICY- Global demand for recycled aluminum is expected to double by 2040, with the industry set to account for 60% of the growth in global aluminum supply until 2030. It will account for 70% of supply growth between 2030 and 2040. Spectro Alloys is the leading secondary foundry alloy producer in the US, producing 110k tons of aluminum ingots.

EGA made big moves this year: EGA completed a full acquisition of German aluminum recycling company Leichtmetall Aluminum Giesserei from Leichtmetall Holding in May. Its acquisition of the German firm was EGA’s first major acquisition since it was formed through the merger of Dubai Aluminum and Emirates Aluminum in 2013.

Green manufacturing and debt updates from Egypt + Saudi

GREEN MANUFACTURING-

Al Jouf’s Green Cement approved for Neom: Saudi Al Jouf Cement Company ’s new green cement product has been approved for use in Neom projects, according to a Tadawul disclosure posted on Saturday. Developed in partnership with Asas Al-Muhailb Company, the green cement reduces carbon emissions by 30% and is an alternative to imported supplementary components like Blast Furnace Slag (GGBS) and Fly Ash.

The details: The green cement offers high-quality concrete with improved durability, lower water absorption, and resistance to chloride and sulfate salts. It has a lower heat of hydration, making it ideal for large-scale concrete works. It also enhances concrete’s compressive strength, helps with heat insulation, and lowers cooling costs by reducing the need for ice.

DEBT WATCH-

Egypt is lining up a grant from the Spanish Agency for International Development Cooperation to fund wastewater treatment and recycling in sugar factories, according to a statement released last week. The grant will support the rehabilitation and modernization of wastewater management systems in Egypt’s sugar factories, and aims at ending the leakage of wastewater to the Nile streams.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

Saudi Authority and Lucid team up on EV damage assessment: The Saudi Authority for Accredited Valuers (Taqeem) and Lucid Group have signed an MoU to improve EV vehicle damage assessment. The partnership will enhance damage evaluation, repair quality, and spare parts pricing, ensuring fair compensation for vehicle owners. It will also involve knowledge sharing and specialized training on Lucid vehicle repair. (SPA)

Mongolia and Orano ink USD 1.47 bn uranium agreement

Mongolia and Orano strike a USD 1.6 bn uranium agreement: Mongolia has reached a preliminary agreement with France’s Orano Mining Group to develop a USD 1.6 bn uranium mining project, Reuters reported on Friday. The project will begin its preparatory phase in 2024 and is expected to start production in 2028, with peak output reaching 2.6k metric tons by 2044.

About the company: Orano Group is a France-based multinational company specializing in nuclear fuel lifecycle. A major uranium producer, the company operates in 17 countries and is active in uranium mining, conversion, enrichment, and recycling.

JSW Energy to expand with USD 1.47 bn green acquisition: Indian JSW Energy ’s unit JSW Neo Energy will acquire the India-based renewable energy platform O2 Power for USD 1.5 bn, according to a statement on Friday. The agreement — set to be finalized by May 2025 — includes a 4.7 GW renewable energy portfolio, with 2.3 GW to be operational by June 2025 and the rest by June 2027, Reuters reported. O2 Power is backed by Singapore’s Temasek and Sweden’s EGT Infrastructure and specializes in utility-scale and industrial sector projects, spanning solar, wind, battery storage, and hybrid energy technologies.

China greenlights world’s largest hydro dam: China has approved the construction of the world’s largest hydropower dam on the Yarlung Zangbo River, located on the eastern edge of the Tibetan plateau, Reuters reported last week. The project, which could produce 300 TWh of electricity annually, would be more than triple the capacity of China’s Three Gorges Dam, currently the largest in the world.

The dam sparks regional concerns: The project has raised concerns in downstream India and Bangladesh over the potential impact on the local ecosystem and water supplies downstream, but China — planning further projects upstream — claims that the project will have minimal environmental impact. The Chinese government is yet to release any reports on how the project will impact people in the region and the ecosystems.

Vietnam will implement a 97% anti-dumping tariff on wind towers imported from China after a probe that lasted over a year, according to a statement released by the Chinese trade ministry last week. The levy would come into effect 15 days after signing and stay in force for five years. Almost all Chinese producers will be affected except for Jiangsu Zhenjiang New Energy Equipment, which was not implicated in the investigation.

The argument: Vietnamese producers triggered the launch of the anti-dumping investigation in September 2023 after claiming that they were being harmed by the dumping of Chinese towers, Reuters reported. The trade ministry concluded that China-made wind towers were dumped into the Vietnamese market, causing major damage to the local industries. The authority also concluded that domestic manufacturers could produce high quality products to be exported.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

Russia launches wind blade factory: Russia’s Rosatom opened a wind turbine blade factory in Ulyanvosk, replacing a plant previously owned by Denmark’s Vestas which divested from the country in 2023. The factory will produce up to 450 blades annually for the local markets, and may also supply blades for export, including Rosatom’s wind projects abroad, such as its 1 GW Kyrgyzstan wind farm. (Reuters)
New York has passed a law that will fine fossil fuel companies USD 75 bn over 25 years to cover the damage caused by climate change. Companies — determined to be responsible for over 1 bn tons of emissions — will be fined based on the size of their emissions from 2000 to 2018, with payments starting in 2028. The money will help pay for recovery and adaptation efforts, including infrastructure, estimated to cost the state more than USD 500 bn by 2050. (Reuters)

Researchers use freshwater algae to create sustainable plastic

Could algae be a game-changer for sustainable plastics? Researchers at the University of Manchester have developed a method to enhance the ability of cyanobacteria — a type of freshwater algae — to produce a key component in creating sustainable plastics: citramalate. This breakthrough demonstrates how photosynthetic microorganisms can convert CO2 into valuable materials, offering a promising eco-friendly alternative to plastics typically made from fossil fuels.

SOUND SMART- What is cyanobacteria? Cyanobacteria, known as blue-green algae, are photosynthetic bacteria found naturally in freshwater environments. When excess nutrients like phosphorus and nitrogen accumulate in warm water, they can trigger the growth of cyanobacterial blooms. While cyanobacteria play an important ecological role under normal conditions, their overgrowth can disrupt aquatic ecosystems and pose risks to water quality and human health.

The details: Despite these algae’s bio-potential, they are yet to be used on an industrial scale due to growth and efficiency challenges. However, Manchester University’s team’s research has increased the optimization of the organism’s carbon conversion capabilities, achieving a remarkable 23-fold increase in citramalate production. Researchers highlighted the need to carry out more experiments to test scaling production while maintaining high optimization rates, as well as exploring more optimization pathways that could support the use of the organism for other sustainable ventures.

Other potential sustainable use: Apart from plastics, the cyanobacteria method could be used to create a wide range of eco-friendly materials. Pyruvate and acetyl-CoA, the key components involved in citramalate production, can be used to create many other important biomolecules, the technique can contribute to the production of biofuels, pharmaceuticals, and other sustainable materials.

Calendar

JANUARY 2025

12-15 January (Sunday-Wednesday): World Renewable Energy Congress, Manama, Bahrain.

14-16 January (Tuesday-Thursday): World Energy Summit, Abu Dhabi, UAE.

14-16 January (Wednesday-Thursday): Future Minerals Forum, Riyadh, Saudi Arabia.

18-19 January (Saturday-Sunday): Libya Energy & Economic Summit, Tripoli, Libya.

28-29 January (Tuesday-Wednesday): Sustainability Forum Middle East, Manama, Bahrain.

FEBRUARY

17-19 February (Monday-Wednesday): Egypt Energy Show, Cairo, Egypt.

23-25 February (Sunday- Tuesday): Global Water Energy and Climate Change Congress, Manama, Bahrain.

24-26 February (Monday-Wednesday): Connecting Hydrogen MENA, Dubai, UAE.

24-27 February (Monday-Thursday): Oman Climate Week, Muscat, Oman.

APRIL

7-9 April (Monday-Wednesday): Middle East Energy, Dubai, UAE.

10-12 April (Thursday-Saturday): SolarEX Istanbul, Istanbul, Turkey.

14-15 April (Monday-Tuesday): Istanbul Carbon Summit, Istanbul, Turkey.

15-17 April (Tuesday-Thursday): International Conference on Functional Materials and Renewable Energies (COFMER), Tangier, Morocco.

21-23 April (Monday-Wednesday): Electric Vehicle Innovation Summit (EVIS), Abu Dhabi, UAE.

MAY

7-9 May (Wednesday-Friday): International Renewable Energy Conference (IRENEC), Istanbul, Turkey.

JUNE

17-20 June (Tuesday-Friday): Mediterranean Water, Irrigation and Photovoltaic Exhibition, Tunisia.

OCTOBER

20-21 October (Monday-Tuesday): Sustainable Buildings and RetrofitTech Saudi Summit, Riyadh, KSA

NOVEMBER

25-26 November (Tuesday-Wednesday): Sustainable Buildings and RetrofitTech Bahrain Summit, Manama, Bahrain.

EVENTS WITH NO SET DATE

2024

End-2024: Emirati Masdar’s 500 MW wind farm in Uzbekistan to begin commercial operations.

QatarEnergy’s industrial cities solar power project will start electricity production.

November: Arab Forum for Renewable Energy and Energy Efficiency, Amman, Jordan.

2025

International Union for Conservation of Nature World Conservation Congress, Abu Dhabi, UAE.

UAE to have over 1k EV charging stations installed.

Middle East Electric Vehicle Show, Sharjah, UAE.

2026

26-29 October (Monday-Thursday): World Energy Congress, Riyadh, Saudi Arabia.

UITP Global Public Transport Summit, Dubai, UAE.

Annual Meetings of the World Bank and the International Monetary Fund, Bangkok, Thailand.

1Q 2026: QatarEnergy’s USD 1 bn blue ammonia plant to be completed.

End-2026: HSBC Bahrain to eliminate single-use PVC plastic cards.

2027

MENA’s district cooling market is expected to reach USD 15 bn.

World Water Forum, Riyadh, Saudi Arabia.

2030

UAE’s Abu Dhabi Commercial Bank (ADCB) wants to provide AED 35 bn in green financing.

UAE targets 14 GW in clean energy capacity.

Tunisia targets 30% of renewables in its energy mix.

Qatar wants to generate USD 17 bn from its circular economy, creating 9k-19k jobs.

Morocco’s Xlinks solar and wind energy project to generate 10.5 GW of energy.

2035

Qatar to capture up to 11 mn tons of CO2 annually.

2045

Qatar’s Public Works Authority’s (Ashghal) USD 1.5 bn sewage treatment facility to reach 600k cm/d capacity.

2050

Tunisia’s carbon neutrality target.

2060

Nigeria aims to achieve its net-zero emissions target.

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