The Cairo Sustainable Energy Week 2024 (CSEW), held from October 1 to 3 in Egypt, as a collaborative platform for policymakers, industry leaders, and energy experts to explore pathways toward a sustainable future. Hosted by the Regional Center for Renewable Energy and Energy Efficiency (RCREEE), the event underscored the critical role of regional cooperation in achieving climate goals and advancing the clean energy transition in the MENA region.
As the Net-Zero Partner of CSEW 2024, the Global Carbon Council (GCC) demonstrated its leadership in facilitating climate finance for MENA countries. By fostering regional collaboration, advancing carbon market instruments, and developing innovative tools for Article 6.2 compliance, the GCC is helping the region address the dual challenge of reducing emissions while driving economic development. The event reinforced the importance of carbon markets in achieving sustainable energy transitions and building resilience against climate change.
Session: Navigating Strategies, Policies, and Regulations for Clean Energy & Clean Tech
Moderated by Mohamed Salah ElSobki from the World Energy Council (WEC), the session featured a diverse panel of experts, including Abdellatif Bardach from the Moroccan National Authority for Regulation of Electricity (ANRE), Amani Alazzam from the Ministry of Energy and Mineral Resources in Jordan (RCREEE BoT), Gabriele Cassetti from the Energy Community, and Mohamed Mousa Omran from the African Renewable Energy Initiative (AREI).
During the session, Kishor Rajhansa, representing the GCC, brought a unique perspective to the discourse by emphasizing the importance of a collective policy approach across the MENA region. In contrast to other speakers who focused on country-specific policies, Kishor highlighted the significance of the Paris Agreement as a unifying framework for policymaking that allows countries to leverage their strengths and collaboratively address their weaknesses.
Kishor articulated that nations within the region possess diverse energy resources and capabilities. For instance, while some countries are rich in natural gas, others rely on coal. This creates an opportunity for mutual support in reducing emissions. He pointed out that countries with capabilities in carbon storage, such as mineral rock formations, can collaborate with those generating carbon dioxide emissions, fostering a synergistic approach to climate action.
One of the key proposals Kishor presented was the potential for a unified electricity grid in the MENA region. He explained that Article 6.2 of the Paris Agreement facilitates this by enabling countries to submit a regional Nationally Determined Contribution (NDC). This collective NDC would outline how nations can assist one another in achieving their climate targets.
Kishor also stressed the necessity for positive trade policies among MENA countries, particularly in light of the European Union’s carbon border adjustment mechanism. He noted that countries must meet specific carbon reduction targets to ensure their products and services remain competitive in European markets. By fostering collaborative trade policies, MENA countries can collectively reduce their carbon footprint, benefiting from shared expertise and resources.
Moreover, Kishor highlighted the critical need to develop national registries for carbon credits within the countries. He advocated for a collective effort to establish these registries, emphasizing that the GCC is working to offer digitized national registry solutions to quickly operationalize Article 6.2 of the Paris Agreement. By collaborating with the GCC, countries can enhance the role of voluntary and compliance markets to lower national carbon footprints while effectively meeting their NDCs. The partnership and cooperative approaches between countries would be facilitated by the interoperability of carbon registries, aligning with Article 6.2 objectives, via seamless integration of compliance and voluntary carbon markets.
Kishor concluded his remarks by asserting that this moment presents a unique opportunity for countries in the region to integrate climate finance policies. By working together, MENA nations can pool resources and raise capital for mitigation projects, using the carbon market as a vital instrument in their climate action toolkit.
The discussions in Session 1 underscored the critical need for collaboration and innovation in developing strategies that harness the collective strengths of the MENA region. For example, by aligning policies for creating interconnected electricity and desalinated water grids, the countries can significantly advance their clean energy goals and contribute to global efforts in combating climate change.
Session: The Role of Multilateral Development Banks (MDBs) and Carbon Markets in Climate Action and Green Energy Transition
At the CSEW 2024, an essential session explored the pivotal roles of MDBs and carbon markets in accelerating climate action and promoting the green energy transition. Organized by the Union for the Mediterranean (UfM) in collaboration with the RCREEE, the session was moderated by Ines Duarte from UfM. Featured speakers included Ahmed ElSaket from the European Investment Bank (EIB), Yosra Assaker from the World Bank, and Selimcan Azizoglu from the Climate Action Center of Excellence (CACE), GORD.
Kishor highlighted the pressing challenges and opportunities within the landscape of climate finance. He opened with a stark reality: the collective commitments outlined in (NDCs are projected to achieve reductions of about 60 to 65 gigatons per year; of which the energy sector alone contributes approximately 38 to 40 gigatons of emissions per year while revealing a significant gap between current commitments and the necessary NDC commitments to meet the ambitious climate goals needed to limit global warming to 1.5 degrees Celsius. Kishor articulated the important role that the private sector must play in bridging this gap.
Kishor passionately conveyed how corporates can catalyze climate action by engaging with carbon markets, presenting a compelling case for the strategic integration of private financing in achieving global climate objectives.
In addition to these financial mechanisms, Kishor outlined GCC’s commitment to developing national registry solutions for MENA countries. These solutions will facilitate seamless operations under Article 6.2 of the Paris Agreement, empowering nations to fully capitalize on carbon market opportunities. By integrating with global platforms such as the Climate Action Data Trust (CADT) from the World Bank, GCC aims to position MENA countries at the forefront of the carbon market landscape.
Kishor also highlighted GCC’s proactive approach to capacity building. He mentioned an upcoming capacity-building workshop for member countries of the League of Arab States, focusing on operationalizing Article 6.2. This initiative underscores GCC’s dedication to enhancing the region’s capability to navigate the complexities of climate finance effectively. Furthermore, he discussed partnerships with key entities, including the Egyptian Carbon Exchange and the RECREE, to promote renewable energy and energy efficiency across the MENA region.
As the session progressed, Kishor addressed critical questions surrounding the blurred lines between voluntary and compliance markets. He discussed the current state of climate finance, acknowledging the challenges faced by voluntary carbon markets, which have seen lower performance this year. However, he remained optimistic, citing World Bank statistics that indicate a potential rise in carbon prices and growing demand for Article 6 credits in the near future.
He concluded his presentation by outlining the myriad benefits for countries participating in Article 6.2. He emphasized that involvement in these initiatives could generate revenue for national budgets, support expensive mitigation measures, and fuel sustainable development co-benefits through the implementation of high-quality, high-integrity projects.
His contributions during this session not only showcased the importance of MDBs and carbon markets in driving climate action but also reaffirmed GCC’s unwavering commitment to facilitating the clean energy transition across the MENA region. By providing the necessary tools, expertise, and platforms for climate finance, GCC is poised to make a lasting impact on sustainable development in the region.
Looking Ahead: GCC’s Expanding Role in Carbon Markets and Climate Finance
Kishor closed by sharing GCC’s future vision, particularly focusing on the launch of the Carbon Finance Facility in the coming months, which will operate independently to provide both project finance and carbon finance solutions. The facility is expected to be a game-changer for nations seeking to finance their climate action plans through carbon markets.
In addition, the GCC continues to develop national registry solutions for the MENA region, aiming to provide a seamless platform for Article 6.2 operations. These solutions will integrate with global platforms like the CADT of the World Bank, allowing countries to fully capitalize on carbon market opportunities.
Kishor’s contributions at CSEW 2024 reaffirmed GCC’s commitment to driving the clean energy transition across the MENA region by providing the tools, expertise, and platforms necessary for climate finance and sustainable development.
