Cop28 boosts coastal community climate role

12 December 2023

Of the $83.9bn in funding commitments made during the first 11 days of the Cop28 UN climate summit, $467m has been allocated to local climate action, in addition to $134m for adaptation, $129m for least-developed countries and $30bn for climate finance.  

The Loss and Damage Fund has also attracted commitments of over $720m, with more expected to come.

These financial commitments will benefit local communities globally that have been taking the brunt of extreme weather events such as floods and droughts.

"The Cop28 summit in Dubai has recognised that the success of nearly all agreed climate measures and funding will depend on local and sub-national government implementation," says Alfredo Coro II, mayor of Del Carmen municipality in the Philippines' southern Siargao Islands.

Coro attended the Local Climate Action Summit, which was organised as part of the Cop28 conference.

"We recognise [former New York City mayor] Michael Bloomberg's role in pushing for mayors to be at the forefront of discussions on climate change actions, policies and funding," Coro tells MEED.

"We hope our network… will be able to attract global organisations to listen and respect the innovations of small coastal communities to address climate change impact on oceans and support sustainable fishing, as well as coastal management."  

Coro also represents the Costal500, an alliance of mayors and other local government leaders from countries including Brazil, the Federated State of Micronesia, Guatemala, Honduras, Indonesia, Mozambique, Palau and the Philippines.

The Coastal500 alliance aims to serve as a platform for scaling climate adaptation and climate solutions in small local communities around the world.

"The local governments implement the climate action and they also absorb all the loss and damages," says Coro. "Recognising local governments in Cop28 will … play a major role in the discussions of operationalising the Loss and Damage Fund, from global finances to national government funds."

A total of 200 countries agreed to set up the Loss and Damage Fund at Cop27 last year, nearly 30 years since it was first discussed at a Conference of the Parties of the UN Framework Convention on Climate Change (Cop).

Cop28 announced operationalising the fund on 30 November, with the UAE and Germany each pledging $100m towards the fund; the UK pledging $75m; and the US, which has previously pushed back on the fund, planning to contribute $17.5m.

France and Italy each pledged $108m, Denmark pledged $50m, Norway committed $25m, and Japan and China each pledged $10m. 

According to Coro, the Coastal500 members have already proven case studies that, when replicated, will be able to help mitigate and adapt to the impacts of climate change on a family and community level.

He cites as an example an integrated climate adaptation and mitigation strategy in his municipality. "We rehabilitated our mangrove ecosystem and conducted investments to prepare our communities and local government," he explains.

These helped to minimise the loss of life when super typhoon Rai made landfall in the Siargao Islands in December 2021. However, the typhoon heavily damaged the islands' Climate Field School, which was funded by a climate adaptation fund in the Philippines.

"We hope that localising the policies and practices will give local governments the courage to demand the needed access to financing potential loss and damages that have direct consequences to their respective constituency and community," Coro says.

Drop in the ocean

The final mechanisms for the Loss and Damage Fund have yet to be finalised. It remains unclear whether the funds will be disbursed as loans or grants.

Unlike climate mitigation and adaptation projects that aim to reduce carbon emissions and improve community responses to extreme weather events, the Loss and Damage Fund intends to help communities that have already suffered losses such as flood-damaged bridges or dams and agricultural crop revenues.

Rich, carbon-emitting countries are the expected main sources of the fund, although China, the world's top carbon emitter, which is a developing country, could technically qualify both as a source and recipient of the fund.

While operationalisng the fund has been considered a breakthrough, some critics have said that the pledges so far amount to only 0.2 per cent of what is needed to address the problem.

"The millions promised for the Loss and Damage Fund at Cop28 are a drop in the ocean of what is needed," notes Lien Vandamme, a senior campaigner at the Centre for International Environmental Law.

“Hundreds of billions of public, grants-based, new and additional money is needed, and we cannot call this Loss and Damage Fund a success as long as this is lacking,” she added.

Mena extreme weather

Several countries in the Middle East and North Africa (Mena) region have recently suffered major calamities that can be directly linked to climate change. 

Thousands of people were feared to have drowned when a storm swept through Derna in eastern Libya on 11 September. Heavy rains from Storm Daniel caused a water dam about 12 kilometres from Derna to fail, sending water down a valley and overwhelming a second dam closer to the city.

The storm was called a Medicane – a portmanteau for Mediterranean and hurricane – which experts said drew enormous energy from extremely warm seawater. A warmer atmosphere is also understood to hold more water vapour that can fall as rain.

Photo: Pixabay

https://image.digitalinsightresearch.in/uploads/NewsArticle/11363941/main.jpg
Jennifer Aguinaldo
Related Articles
  • Facility E nears 25 July bid deadline

    19 July 2024

     

    The tender closing date of 25 July remains unchanged for the contract to develop and operate Qatar’s Facility E independent water and power producer (IWPP) project.

    At least one developer team is highly likely to submit a proposal to develop the gas-fired plant, sources close to the project tell MEED.

    Qatar state utility General Electricity & Water Corporation (Kahramaa) had previously extended the tender closing date for the contract in response to developers’ requests, as MEED reported.

    The Facility E IWPP scheme will have a power generation capacity of 2,300MW and a water desalination capacity of 100 million imperial gallons a day (MIGD).

    “We hear that at least one consortium is being formed … others are preparing proposals, but appear unsure if they will ultimately submit them or not,” a source close to the project told MEED in November last year. 

    Kahramaa initially expected to receive bids on 14 December 2023.

    The contract to develop the Facility E IWPP was first tendered in 2019. The three teams that submitted bids for the contract in August 2020 were:   

    • Engie (France) / Mitsui (Japan) / Yonden (Shikoku Electric, Japan)
    • Sumitomo / Kansai Electric (Japan)
    • Marubeni / Kyushu Electric (Japan)

    The original plan was for the Facility E IWPP to have a power generation capacity of about 2,300MW and a desalination component of 100MIGD once fully operational.

    However, the project owner revised the power plant’s design capacity to 2,600MW and sought alternative prices from bidders. 

    Kahramaa eventually cancelled and reissued the tender in September 2023. The current tender entails a power generation plant with the same capacity as initially tendered in 2019.

    MEED understands that the new target commercial operation date for the Facility E IWPP project has been moved to 2027. 

    The state utility’s transaction advisory team includes UK-headquartered PwC and Clyde & Co as financial and legal advisers, respectively, led by Belgrade-headquartered Energoprojekt as technical adviser.

    Facility E is Qatar’s fifth IWPP scheme. Completed and operational IWPPs include three projects in Ras Laffan – known as Facilities A, B and C – and Facility D in Umm Al-Houl.

    Awarded in 2015 and completed in 2018, Facility D was developed by a Japanese consortium of Mitsubishi Corporation and Tokyo Electric Power Company (Tepco). South Korea's Samsung C&T was the engineering, procurement and construction contractor.  

    https://image.digitalinsightresearch.in/uploads/NewsArticle/12177605/main.jpg
    Jennifer Aguinaldo
  • Masdar’s second bond issue raises $1bn

    19 July 2024

    Abu Dhabi Future Energy Company (Masdar) has raised $1bn through its second bond issuance under its Green Finance Framework.

    The announcement comes one year after the company’s first successful issuance of $750m on the International Securities Market of the London Stock Exchange.

    Masdar said the issuance comprises dual tranches of $500m each, with tenors of five and 10 years and coupons of 4.875% and 5.25%, respectively.

    It said there was strong appetite from regional and international investors, with the order book peaking at $4.6bn – 4.6 times oversubscribed.

    The company finalised the allocation with an average split of 70% to international investors and 30% to Middle East and North Africa investors.

    The $1bn proceeds from the issuance will be deployed to fund Masdar’s equity commitments on new greenfield projects, including several in developing economies, as the company pursues a target portfolio capacity of 100GW by 2030.

    In line with Masdar’s corporate credit ratings, the second issuance was rated AA- by Fitch and A2 by Moody’s.

    First Abu Dhabi Bank, Abu Dhabi Commercial Bank, Citibank, HSBC, Standard Chartered, Credit Agricole CIB, Natixis and MUFG were the lead managers and bookrunners on the issuance.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/12177600/main.jpg
    Jennifer Aguinaldo
  • Firms seek to prequalify for 12 Saudi water projects

    18 July 2024

     

    Local and international utility developers have submitted their statements of qualifications (SOQs) for the contracts to develop and operate 12 water public-private partnership (PPP) projects in Saudi Arabia. 

    State-backed offtaker Saudi Water Partnership Company (SWPC) received separate responses from companies for five independent water projects (IWPs) and seven independent sewage treatment plant (ISTP) projects by 4 July, industry sources tell MEED.

    Local and regional companies, in addition to Japanese, Spanish, French and Chinese utility developers, are understood to have sought to prequalify to bid for the contracts, which are set to be tendered in 2024-26. 

    SWPC's shift from a single-project to a multiple-project prequalification process saves time and resources, according to one of the companies that submitted an SOQ.

    "This is particularly true for international developers, which need to allocate resources across various geographies," the source said.

    Another source said he believes SWPC will prequalify companies for lead and technical roles, among others, and then allow these companies to form teams at a later stage.  

    The client previously said that the programme "will provide the opportunity to local and international developers to obtain pre-qualification approval and receive the request for proposal documents for its future projects … without the need to submit a separate qualification application for each project".

    The five IWP schemes have a total combined capacity of 1.7 million cubic metres a day (cm/d). The seven ISTP projects have a total combined capacity of 700,000 cm/d.

    The kingdom's water sector has been undergoing a restructuring programme, with the capacity procurement process linked to the National Water Strategy being undertaken by three other clients: Saline Water Conversion Company, which has been renamed Saudi Water Authority; Water Transmission & Technologies Company; and the National Water Company.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/12167522/main.gif
    Jennifer Aguinaldo
  • Nama appoints 2027-29 procurement advisers

    18 July 2024

     

    Oman's Nama Power & Water Procurement (Nama PWP) has appointed a transaction advisory team to support its 2027-29 power and water procurement strategy.

    According to an industry source, the team comprises UK-headquartered Deloitte as lead transaction and financial adviser, Canada-based engineering consultancy WSP as technical adviser, and US firm CMS as legal adviser.

    The scope of work won by the advisory team includes preparing the overall procurement strategy, extending existing contracts expiring between 2027 and 2029, and undertaking procurement for new-build plants.

    The contracts for three independent power projects (IPPs) in Oman with a total combined capacity of 3,518MW are expiring between 2028 and 2029, according to the state offtaker's latest Seven-Year Planning Statement, which covers the years 2023 to 2029.

    These gas-fired plants and their power generation capacities are:

    • Barka 3 IPP: 750MW (2028)
    • Sohar 3 IPP: 750MW (2028)
    • Sur IPP: 2,018MW (2029)

    Phoenix Power Company, the project company for the 2,018MW Sur IPP, comprises Japan's Marubeni Corporation and Jera and Qatar's Nebras Power. 

    Shinas Generating Company – owned by Saudi Arabia's Acwa Power, Japan's Mitsui and China's Didic – is the project company for Sohar 3.

    Al-Suwaidi Power is the project company for Barka 3. It comprises France's Engie, Japan's Shikoku Electric and the local Suhail Bahwan Group.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/12166689/main1708.jpg
    Jennifer Aguinaldo
  • UAE keen to start next nuclear plant phase

    18 July 2024

    The UAE government could start the tendering process this year for the state's next nuclear power plant, located in Abu Dhabi, according to a Reuters report citing a senior UAE government official.

    According to the report, Hamad Alkaabi, the UAE's permanent representative to the Austria-based International Atomic Energy Agency, said: "The government is looking at this option. No final decision has been made in terms of the tender process but I can tell you that the government is actively exploring this option."

    The government has yet to budget for a second power plant or decide on the size or location of such a project, but Alkaabi said it is possible a tender could be issued this year, the report added.

    A significant increase in electricity use over the next decade, driven by population growth and an expanding industrial sector, underpins the plan to proceed with the next phase of the state's civilian nuclear power programme.

    Any new power plant would likely consist of two or four reactors, said Alkaabi, who also serves as the deputy chairman of the board of management of the UAE's Federal Authority for Nuclear Regulation.

    The next phase of the Barakah power plant, comprising reactors five to eight, has been in the planning stage since 2019, according to regional projects tracker MEED Projects.

    The UAE became the first Arab state to operate a nuclear power plant when the first of the four reactors at Abu Dhabi’s Barakah nuclear power plant became operational in 2021.

    Each of the four reactors at the Barakah nuclear power plant can produce 1,400MW of electricity.

    Three of the plant’s four reactors are operational. Emirates Nuclear Energy Corporation's operating and maintenance subsidiary, Nawah Energy Company, completed the loading of fuel assemblies into Unit 4 in December 2023. 

    Unit 4 will raise the Barakah plant’s total clean electricity generation capacity to 5,600MW, equivalent to 25% of the UAE’s electricity needs.

    Korea Power Corporation is the prime contractor for the $24.4bn first phase of the Barakah nuclear power plant.

    GlobalData expects nuclear power capacity in the Middle East and North Africa region to grow from zero in 2020 to an estimated 7.1GW by 2030, mainly thanks to Abu Dhabi’s Barakah nuclear energy plant and the first reactors of Egypt’s El-Dabaa nuclear power plant.

    The UAE is one of more than 20 countries that committed to tripling global nuclear energy capacity by 2050 at the UN climate change summit Cop28, which was held in Dubai in late 2023.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/12165779/main1220.jpg
    Jennifer Aguinaldo