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Adaptation to Climate Change in the MENA Region

Adaptation to Climate Change in the MENA Region


The World Bank in its “Adaptation to Climate Change in the MENA Region” predicted that this region being particularly vulnerable to climate change, it should do more to adapt to water scarcity and heat and adjust all institutional mechanisms to deal with these environmental constraints. Environmental awareness in the Arab world posted on The Arab Weekly of 17 Novembre 2019 is a good illustration of this latest trend.


Lebanon was the country with the strongest concerns about climate change in general, followed by Tunisia and Egypt.

Adaptation to Climate Change in the MENA Region
Emiratis light candles to mark Earth Hour near Burj Khalifa in Dubai, March 23, 2013. (Reuters)

Climate change is a global emergency that respects no borders but results from a recent survey revealed that, when it comes to convincing MENA populations to come to grips with the crisis, substantial barriers remain.

Recent data gathered by Arab Barometer, a nonpartisan research network that has conducted opinion surveys across the region since 2006, indicated that a strong majority of respondents said they were “very concerned” about water and trash pollution (70% and 66%, respectively). Both issues are immediate problems that MENA residents must often deal with directly and can see with their own eyes daily.

However, when it came to more abstract or long-term environmental issues, such as climate change and air quality, fewer survey respondents said they were very worried (35% and 44%, respectively).

Opinions showed no significant variations across age and gender groups. However, more educated and affluent respondents expressed slightly stronger concerns about climate change in general.

The survey uncovered dividing lines geographically: Residents in rural areas were more likely to view climate change as a “very serious” problem than those living in urban environments.

Lebanon was the country with the strongest concerns about climate change in general, followed by Tunisia and Egypt, but national differences on specific issues were the starkest. Air quality was considered a “very serious” problem for 57% of respondents in Libya but only for 25% of those surveyed in Kuwait.

The survey adds credence to the argument that a region-wide effort must be made to build awareness about climate change.

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Algeria: distinguishing economic time from political time

Algeria: distinguishing economic time from political time

The new Law of Hydrocarbons in Algeria: distinguishing economic time from political time was enacted despite concurrent street demonstrations against it. It was debated at length by Professor Abderrahmane MEBTOUL, International Expert, in interviews to Radio Algeria International – Paris France on 04/11/2019, to Algerian Radio Channel-3 and to Radio France International on 05/11/2019. Here are some excerpts of each.

Algeria: distinguishing economic time from political time

Question – 1. Will Algeria with high domestic consumption be able to meet its international commitments?

Indeed, if we take natural gas, domestic consumption is likely to exceed 60 billion cubic meters of gas by 2030 and 100 billion cubic meters of gas between 2035/2040, the Ministry of Energy has announced the depletion of reserves would be at about 60%. An urgent need to review the current energy policy and move towards a clean energy transition policy that revolves around four axes, to meet its international commitments.

-First: an energy efficiency policy (energy sobriety) that affects all sectors and households by reviewing construction methods, cars/trucks fleet consumption, energy-intensive industrial units; the simple referring to a policy of targeted subsidies, but which do not penalize the disadvantaged, existing new technologies that save about 30% of energy consumption.

-Secondly: the development of renewable energies whose cost has fallen by more than 50% for both thermal and photovoltaics, where Algeria has significant potential.

-Thirdly: to continue to invest in upstream, which can make discoveries as part of a win-win partnership, SONATRACH with lower prices and physical production, which has dropped significantly since 2008, technological or financial capabilities, but no longer have to be deluded by large deposits like Hassi-Messaoud or Hassi-Ramel.

-Fourthly: avoid precipitation whilst developing SHALE oil and gas, Algeria having the third world reservoir, only by 2025, as I recommended to the authorities of the country, through this study with experts pending new technologies that replace hydraulic fracturing, saving freshwater and injecting more than 90% of the chemicals into wells, thus protecting the environment, but requiring in-depth social dialogue.

To answer your question directly, I highlighted the points at the 5 + 5 Meeting of Algeria, Morocco, Tunisia, Mauritania, Libya with France, Italy, Spain, Portugal, Malta in Marseille in June 2019. I had the honour of chairing the Energy Transition’s workshop in which the subject of a clean energy transition policy, and the modification by Algeria, a major energy player in the Mediterranean basin, as it has always done, to meet its international commitments by 2030.

Question – 2. Will the amendment of this law attract foreign investors?

Depending on several factors, such as:

-First: the revision of this law as I have pointed out since its enactment at the beginning of 2013 is unsuited to the current situation, in particular the tax component and the nature of the contracts in which Sonatrach supports the majority of the financing, the world having evolved from where the importance of its revision to take account of new global energy changes.

-Secondly: however, a law is only a legal instrument, being a necessary but sufficient condition of the attractiveness of foreign investment, where any company attracted by direct profit rate, and also as long as the level of foreign exchange reserves is high. Depending on the business environment where Algeria was in the latest report of the World Bank of 2019 was very poorly classified because of its paralyzing bureaucracy, corruption, financial and unsuitable socio-educational systems.

-Thirdly: the political climate is decisive, and according to international observers no serious investor would engage in Algeria without the resolution of the political crisis, political stability especially in a country like Algeria, where politics and economics are intertwined, being a determining factor in the attractiveness of a foreign investment.

-Fourthly: as I have just pointed out recently, to your colleagues on France 24 television, and several Algerian websites and daily newspapers, it would be desirable to postpone the adoption of this law after the presidential election. Only a president and a legitimate government can secure the future of the country where this resource, directly and indirectly, provides about 98% of the country’s foreign exchange resources. Some company executives fear that a new president would challenge this law, which would be passed by a transitional government, responsible for current affairs, while legal stability is a golden rule for all investor.

-Fifth: to answer this second question directly, the positive impact of this law would depend on the future global energy map, the entry of new producers and the sale price on the world market both of oil and gas returning at the cost of production in Algeria therefore to a new strategic management of SONATRACH and the impacts would not be felt only in three to four years, subject to the lifting of environmental constraints. Why this haste, which risks further sharpening social tensions in the run-up to the presidential election, thus possibly harming the voting turnout?

ademmebtoul@gmail.com 

Saudi Aramco aims to announce the start of its initial public offering

Saudi Aramco aims to announce the start of its initial public offering

Hadeel Al SayeghDavide BarbusciaSaeed Azhar elaborate on how Saudi Aramco aims to begin planned IPO on Nov. 3: sources at a time where disinvestment in fossil fuels is taking off worldwide.

DUBAI/RIYADH (Reuters) – Saudi Aramco aims to announce the start of its initial public offering (IPO) on Nov. 3, three people with direct knowledge of the matter told Reuters, after delaying the deal earlier this month to give advisers time to secure cornerstone investors.

Saudi Aramco aims to announce the start of its initial public offering
FILE PHOTO: The Saudi Aramco logo pictured at the company’s oil facility in Abqaiq, Saudi Arabia, October 12, 2019. REUTERS/Maxim Shemetov

The people also said Aramco’s chief executive officer, Amin Nasser, was not present at the conference on Tuesday as he was meeting investors abroad ahead of the offering.

Aramco is looking to float a 1% to 2% stake on the kingdom’s Tadawul market, in what would be one of the largest ever public offerings, worth upwards of $20 billion.

Aramco, in response to queries by Reuters, said on Tuesday the oil company “does not comment on rumour or speculation. The company continues to engage with the shareholders on IPO readiness activities. The company is ready and timing will depend on market conditions and be at a time of the shareholders’ choosing.”

RELATED COVERAGE: Saudi Aramco to start IPO subscription on Dec. 4: Arabiya

The people declined to be identified due to commercial sensitivities.

The company will soon have more shareholders from institutions, the head of the kingdom’s sovereign wealth fund, Yassir al-Rumayyan, said.

Al-Rumayyan, governor of the Public Investment Fund (PIF) and chairman of Aramco’s board of directors, was speaking at a panel at the conference in Riyadh.

Aramco will start subscription for investors in its initial public offering on Dec. 4, Saudi-owned news channel Al-Arabiya said in a news flash on Tuesday citing sources.

The oil giant plans to announce the transaction’s price on Nov. 17, it added. The company will begin trading on the local stock market, the Tadawul, on Dec. 11, the broadcaster reported.

The prospect of Aramco selling a piece of itself has had Wall Street on tenterhooks since Crown Prince Mohammed bin Salman first flagged it three years ago.

However, his desired $2 trillion valuation has always been questioned by some financiers and industry experts, who note that countries have been accelerating efforts to shift away from fossil fuels to curb global warming, putting oil prices under pressure and undermining producers’ equity value.

Russia’s sovereign wealth fund, the Russian Direct Investment Fund (RDIF), is working on a consortium of investors for Aramco’s IPO, its chief executive said.

“There are several Russian pensions funds who are interested to invest in the Aramco IPO and we have also received indications from our Russia-China fund of some Chinese major institutions also interested in Aramco IPO,” Russian Direct Investment Fund (RDIF) head Kirill Dmitriev told reporters on Tuesday.

Separately, Aramco has not approached the Kuwait Investment Authority (KIA) to invest in the IPO, the sovereign wealth fund’s managing director Farouk Bastaki said on Tuesday.

“KIA has not been approached by Aramco or its advisers for the IPO, and KIA will look at the IPO like any other investment,” Bastaki told reporters on the sidelines of an investment conference in Riyadh.

Reporting by Hadeel Al Sayegh in Dubai, Davide Barbuscia and Saeed Azhar in Riyadh; Additional reporting by Rania El Gamal and Marwa Rashad in Riyadh, and Asma AlSharif in Dubai; editing by Giles Elgood and Jason Neely

Our Standards: The Thomson Reuters Trust Principles.

Egypt’s options dwindle as Nile talks break down

Egypt’s options dwindle as Nile talks break down

New Delhi Times Bureau on October 23, 2019, produced this article on a more and more obvious fact, that of Egypt’s options dwindle as Nile talks break down. The Nile basin is the greatest in geographical extent of the transboundary water resource and makes it vital that the neighbours to carry on talking regardless. They should sit and agree with some understanding. But we have this situation instead, all as described below.


The latest breakdown in talks with Ethiopia over its construction of a massive upstream Nile dam has left Egypt with dwindling options as it seeks to protect the main source of fresh water for its large and growing population.

Talks collapsed earlier this month over the construction of the $5 billion Grand Ethiopian Renaissance Dam, which is around 70% complete and promises to provide much-needed electricity to Ethiopia’s 100 million people.

But Egypt, with a population of around the same size, fears that the process of filling the reservoir behind the dam could slice into its share of the river, with catastrophic consequences. Pro-government media have cast it as a national security threat that could warrant military action.

Speaking at the U.N. last month, Egyptian President Abdel-Fattah el-Sissi said he would “never” allow Ethiopia to impose a “de facto situation” by filling the dam without an agreement.

“While we acknowledge Ethiopia’s right to development, the water of the Nile is a question of life, a matter of existence to Egypt,” he said.

Ethiopian President Sahle-Work Zewude, also speaking at the U.N. General Assembly, said her country believes “the use of the river should be (decided) according to international law and fair and equitable use of natural resources.”

Egypt has been holding talks for years with Ethiopia and Sudan, upstream countries that have long complained about Cairo’s overwhelming share of the river, which is enshrined in treaties dating back to the British colonial era. Those talks came to an acrimonious halt earlier this month, the third time they have broken down since 2014.

“We are fed up with Ethiopian procrastination. We will not spend our lifetime in useless talks,” an Egyptian official told The Associated Press. “All options are on the table, but we prefer dialogue and political means.”

Egypt has reached out to the United States, Russia, China and Europe, apparently hoping to reach a better deal through international mediation. The White House said earlier this month it supports talks to reach a sustainable agreement while “respecting each other’s Nile water equities.”

Egypt said it has accepted an invitation from the U.S. to meet in Washington with the foreign ministers of Ethiopia and Sudan to break the deadlock.

Mohamed el-Molla, an Egyptian Foreign Ministry official, said Cairo would take the dispute to the U.N. Security Council if the Ethiopians refuse international mediation.

That has angered Ethiopia, which wants to resolve the dispute through the tripartite talks.

An Ethiopian official said the packages offered by Cairo so far “were deliberately prepared to be unacceptable for Ethiopia.”

“Now they are saying Ethiopia has rejected the offer, and calling for a third-party intervention,” the official added. Both the Ethiopian and the Egyptian official spoke on condition of anonymity because they were not authorized to discuss the talks with the media.

The main dispute is centered on the filling of the dam’s 74-billion-cubic-meter reservoir. Ethiopia wants to fill it as soon as possible so it can generate over 6,400 Megawatts, a massive boost to the current production of 4,000 Megawatts.

That has the potential to sharply reduce the flow of the Blue Nile, the main tributary to the river, which is fed by annual rainfall in the Ethiopian highlands. If the filling takes place during one of the region’s periodic droughts, its downstream impact could be even more severe.

Egypt has proposed no less than seven years for filling the reservoir, and for Ethiopia to adjust the pace according to rainfall, said an Egyptian Irrigation Ministry official who is a member of its negotiation team. The official also was not authorized to discuss the talks publicly and so spoke on condition of anonymity.

The Nile supplies more than 90% of Egypt’s freshwater. Egyptians already have one of the lowest per capita shares of water in the world, at around 570 cubic meters per year, compared to a global average of 1,000. Ethiopians, however, have an average of 125 cubic meters per year.

Egypt wants to guarantee a minimum annual release of 40 billion cubic meters of water from the Blue Nile. The irrigation official said anything less could affect Egypt’s own massive Aswan High Dam, with dire economic consequences.

“It could put millions of farmers out of work. We might lose more than one million jobs and $1.8 billion annually, as well as $300 million worth of electricity,” he said.

The official said Ethiopia has agreed to guarantee just 31 billion cubic meters.

El-Sissi is set to meet with Ethiopia’s Prime Minister Abiy Ahmed, winner of this year’s Nobel Peace Prize, on Wednesday in the Russian city of Sochi, on the sidelines of a Russia-Africa summit. They may be able to revive talks, but the stakes get higher as the dam nears completion.

Ahmed told Ethiopian lawmakers Tuesday that negotiations are the best chance for resolving the Nile deadlock and that going to war is “not in the best interest of all of us.”

“Some say things about use of force,” he said, referring to Egypt. “It should be underlined that no force could stop Ethiopia from building a dam. If there is a need to go to war, we could get millions readied. If some could fire a missile, others could use bombs.”

Late on Tuesday, Egypt said in a statement it was “shocked” and “surprised” by Ahmed’s remarks, which came just days after he was awarded the peace prize.

The statement said it was inappropriate to talk about military options in dealing with the dispute and that it thought the peace prize would have prompted Ethiopia to demonstrate political will, flexibility and “goodwill toward a binding and comprehensive legal agreement that takes into account the interests of the three countries.”

Ethiopia hopes to finish the much-delayed project by 2023. The dam’s manager, Kifle Horro, said the project is now 68.5% complete and preparations are underway to finalize power generation from two turbines by next year.

The International Crisis Group, a Brussels-based think tank, warned earlier this year that the “risk of future clashes could be severe if the parties do not also reach agreement on a longer-term basin-wide river management framework.”

In recent weeks there have been calls by some commentators in Egypt’s pro-government media to resort to force.

Abdallah el-Senawy, a prominent columnist for the daily newspaper el-Shorouk, said the only alternatives were internationalizing the dispute or taking military action.

“Egypt is not a small county,” he wrote in a Sunday column. “If all diplomatic and legal options fail, a military intervention might be obligatory.”

Anwar el-Hawary, the former editor of the Al-Masry Al-Youm newspaper, compared the dispute to the 1973 war with Israel, in which Egypt launched a surprise attack into the Sinai Peninsula.

“If we fought to liberate Sinai, it is logical to fight to liberate the water,” he wrote on Facebook. “The danger is the same in the two cases. War is the last response.”

Credit: Associated Press (AP) | Photo Credit : (AP)

Electric cars are here – but we’ll still need fuel for a long time

Electric cars are here – but we’ll still need fuel for a long time

David Reiner, Cambridge Judge Business School and Ilkka Hannula, University of Cambridge, say that Electric cars are here – but we’ll still need fuel for a long time.

An interesting interval notably for all those industries already devoting billions of Dollars to building these E-cars, thus affecting not only the whole world’s manufacturing and energy generation industries alike but also the planet’s climate. But this obviously not happening overnight, is somehow phased as described in this article.

Many vehicles can’t just be powered by battery. MuchMania/Shutterstock

Electric cars are often seen as one of the great hopes for tackling climate change. With new models arriving in showrooms, major carmakers retooling for an electric future, and a small but growing number of consumers eager to convert from gas guzzlers, EVs appear to offer a way for us to decarbonise with little change to our way of life.

Yet there is a danger that fixating on electric cars leaves a large blind spot. Electrification would be very expensive for the lumbering lorries that haul goods across continents or is currently technically prohibitive for long-distance air travel.

Beyond all the enthusiasm surrounding electrification, currently light-duty passenger vehicles only comprise 50% of total global demand for energy in the transportation sector compared to 28% for heavy road vehicles, 10% for air, 9% for sea and 2% for rail.

Put simply, the current focus on electrifying passenger vehicles – though welcome – represents only part of the answer. For most other segments, fuels will be needed for the foreseeable future. And even for cars, electric vehicles are not a cure-all.

The unfortunate truth is that, on their own, battery electric vehicles (BEVs) cannot solve what we call the “100 EJ problem”. Demand for transport services are expected to rise dramatically in the coming decades. So the International Energy Agency (IEA) projects that we need to significantly reduce the amount of energy each vehicle uses just to keep total global energy demand in the transport sector roughly flat at current levels of 100 exajoules (EJ) by 2050. More than half of that 100 EJ is still expected to come from petroleum products and, by then, the share of light-duty vehicles in transport sector energy demand is expected to decline from 50% to 34%.

Electric cars don’t suit every journey. Nick Starichenko/Shutterstock

The vast majority of existing passenger trips can be accommodated by existing battery electric vehicles so, for many consumers, buying one will be an easy decision (as costs come down). But for those who frequently take very long journeys, the focus also needs to be on lower-carbon fuels.

Petroleum substitutes could extend sustainable transport to heavier vehicles and those seeking longer range, while using the existing refuelling infrastructure and vehicle fleet. Whereas battery electric vehicles will impose wider system costs (for example, the charging infrastructure needed to connect millions of new electric vehicles to the grid), all the transition costs of sustainable fuel substitutes are in the fuels themselves.

Our recent study is part of a renewed focus on synthetic fuels or synfuels (fuels converted from feedstocks other than petroleum). Synfuels were first made on an industrial scale in the 1920s by turning coal into liquid hydrocarbons using the so-called Fischer-Tropsch synthesis, named after its original German inventors. But using coal as a feedstock produces far dirtier fuel than even conventional petroleum-based fuels.

One possible route to carbon-neutral synthetic fuels would be to use woody residues and wastes as feedstock to create synthetic biofuels with less impact on the environment and food production than crop-based biofuels. Another option would be to produce synfuels from CO₂ and water using low-carbon electricity. But producing such “electrofuels” would need either a power system that is very low cost and ultra-low-carbon (such as those of Iceland or Quebec) or require dedicated sources of zero-carbon electricity that have high availability throughout the year.

Pilot plants

Synthetic biofuels and electrofuels both have the potential to deliver sustainable fuels at scale, but these efforts are still at the demonstration stage. Audi opened a €20M e-gas (electro fuel) plant in 2013 that produces 3.2 MW of synthetic methane from 6 MW of electricity. The €150M Swedish GoBiGas plant was commissioned in 2014 and produced synthetic biomethane at a scale of 20 MW using 30 MW of biomass.

Despite the many virtues of carbon-neutral synthetic fuels though, most commercial-scale projects are currently on hold. This is due to the high investment cost of pioneer process plants combined with a lack of sufficiently strong government policies to make them economically viable and share the risk of scale-up.

Government and industry attempts to encourage people to buy electric vehicles aren’t a problem in themselves. Our concern is that an exclusive focus on electrification may make solving the 100 EJ problem impossible. It is too early to tell which, if any, sustainable fuels will emerge successful and so the most pressing need is to scale up production from the current demonstration stage. If not, when our attention finally turns away from glossy electric car advertisements in a few years, we will find ourselves at a standing start in addressing the rest of the problem.

David Reiner, University Senior Lecturer in Technology Policy, Cambridge Judge Business School and Ilkka Hannula, Associate Researcher, Energy Policy Research Group, University of Cambridge

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Reducing Carbon emissions and conserving Hydrocarbons

Reducing Carbon emissions and conserving Hydrocarbons

The key factors of all energy policies across the MENA are about reducing carbon emissions and conserving hydrocarbons reserves per this article, dated September 30, 2019, of Power Technology reporting (see below) on the latest World Energy Council’s congress of Abu Dhabi, early this month.

Clean energy steals the limelight at World Energy Congress

With an estimated $100bn-worth of renewables projects under study, design and in execution across the region, the policy momentum behind energy transformation is now being converted into new, potentially lucrative business opportunities across the Middle East and Africa.

Reducing carbon dioxide emissions and conserving hydrocarbons reserves are key factors shaping energy policy in the Middle East and North Africa (MENA).

But it is the more immediate combination of lower oil prices and the fall in the cost of renewable energy technologies that have seen every country in the region announce ambitious clean energy targets.

Clean energy, which includes renewables such as solar and wind power, as well as alternative fuels including waste-to-energy and nuclear, accounts for only a small proportion of electricity generation in the MENA region today.

Change is coming

According to the International Renewable Energy Agency (Irena), installed solar and wind capacity across the MENA region reached respectively 2,350MW and 434MW in 2017, up from just 91MW and 104MW in 2010.

And with an estimated $100bn-worth of renewables projects under study, design and in-execution across the region, the policy momentum behind energy transformation is now being converted into new, potentially lucrative business opportunities in the region.

Saudi shake-up

The significance of the region’s energy transition was clear to see at the latest edition of the World Energy Congress, which was hosted in Abu Dhabi in September.

Unsurprisingly, Saudi Arabia’s pavilion was the most-buzzing hive at the congress.

In addition to its broad programme of structural economic reforms and the recent appointment of a new energy minister, the region’s biggest economy has by far the most ambitious clean energy programme planned in the Middle East.

As Riyadh’s Renewable Energy Project Development Office (Repdo) outlined plans to launch tenders for its third round of its ambitious National Renewable Energy Programme (NREP) before the end of 2019, representatives from Saudi Arabia’s sovereign investment wealth fund, the Public Investment Fund (PIF), were meeting technology providers on the sidelines of the event to discuss the opportunities for building large-scale solar manufacturing facilities in the kingdom.

Emerging technologies

While solar and wind power are the main focus of the region’s energy diversification plans, some of the world’s largest energy companies were keen to showcase the potential for emerging technologies including waste-to-energy.

Another glimpse into the future was provided by discussions about the potential to store energy from peak-power sources such as solar and wind.

With the race to achieve cost-effective battery-storage solutions already underway, other technologies using hydrogen are being piloted in the region to offer another method to mitigate the intermittency issues of solar and wind power.

The challenge facing the region’s utilities is to convert their ambitious clean energy ambitions into actual investment projects.

This article is sourced from Power Technology sister publication www.meed.com, a leading source of high-value business intelligence and economic analysis about the Middle East and North Africa. To access more MEED content register for the 30-day Free Guest User Programme.