In today’s edition:

⚡️ US copper refineries get tax boost

🚜 Saudi Arabia’s green dreams

🌳 The Rainforest Countries Pact

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⚡️ Energy (1-minute read)

Tax Breaks spark race for the red metal

Driving the news: In its finalised Critical Materials Assessment for 2023, the US Government has for the first time included copper as a critical material, following the example set by the EU, Japan, India, China and Canada. The Critical Materials Assessment evaluates materials based on whether they “serve an essential function” in the production of energy transition technologies such as electric vehicles, solar and wind.

Details: This decision will let copper refineries, processing plants and recycling projects qualify for a tax credit totalling up to 30% of their investment under the Inflation Reduction Act (IRA).

Why it matters: Electrification alone will increase annual copper demand to 36.6 million metric tons by 2031. Current supply projections offer a pathway to 30.1 million metric tons, and another 6.5 million metric tons of capacity (an additional 20 per cent) remain to be found. Geographies are scrambling to secure this supply - those who miss out may face challenges in meeting future transmission & renewables targets.

🚜 AgriTech (1-minute read)

Saudi Arabia's Greenhouse Gamble

Headline: Saudi Arabia is partnering with a Dutch greenhouse company to create a “synthetic climate” for agriculture in the desert. The project, located in Neom (a new city being built on the Red Sea coast), aims to address food security concerns in the arid region.

Details: The Dutch company will design and construct 2 test facilities on Neom’s outskirts, with the goal being to enable year-round production of fruits and vegetables and become a regional food hub for all of Saudi Arabia. If the test facilities succeed, the project will expand to hundreds of hectares of greenhouses, combining advanced horticulture technology (such as water filtration and sea-water cooling systems) alongside AI-driven crop growing.

Bigger picture: Neom (and its food production capabilities) are seen as a key part of Saudi Arabia’s efforts to diversify its economy away from oil.

🌳 Nature (1-minute read)

Rainforest countries form a pact to demand conservation cash from rich nations

What’s happened: The leaders of eight South American nations that are home to the Amazon have met at a two-day summit in the Brazilian city of Belem, with the task of bolstering regional cooperation and stopping the destruction of the rainforest. Let’s unpack the 10,000-word output:

The Good: The eight nations asserted Indigenous rights while also agreeing to cooperate on water management and sustainable development. The leaders called upon wealthy nations to help fund efforts to protect the Amazon due to their resource demands playing a role in its destruction. Colombia’s Petro argued that affluent nations should swap foreign debt owed by Amazon countries for climate action.

The Bad: The summit stopped short of environmentalists’ and Indigenous groups’ boldest demands, including for all member countries to adopt Brazil’s pledge to end illegal deforestation by 2030 and Colombia’s pledge to halt new oil exploration.

The Ugly: A lot of finger-pointing ensued… One official said, “We tried [to include some deforestation targets], but Bolivia explicitly asked for it to be deleted,”. Deforestation is soaring in the Bolivian Amazon, representing about 8.4% of South America’s largest biome. The trend is more positive in Brazil, which controls about 60% of the Amazon. Deforestation has fallen 42.5% in the first seven months of Lula’s government.

💭 Little Bytes

Quote: “It’s not Brazil that needs money. It’s not Colombia that needs money. It’s not Venezuela. It’s nature.” — Luiz Inácio Lula da Silva

Stat: If the fashion industry reduced its volume of stock that gets sold at a discount by 15%, it would see emissions fall by 10% without impacting on value — McKinsey

Watch: The Formula-E car built entirely from old phones and vapes

🗞 In other news…

• The German government passed the budget for its flagship climate and transformation fund (KTF) to accelerate the green transition by providing €212bn to various projects in building renovation, decarbonisation and the industry between 2024 and 2027. German chancellor, Olaf Scholz, believes green tech investment within the country will help revive growth in Europe’s largest economy.

• On Friday, The Biden administration awarded $1.2 billion to support companies looking to pull carbon from the air. The investments endorsed a specific strategy of grouping companies and Carbon Capture researchers in hubs to support scaling the nascent tech.

• Airlines joined forces with farmers to lobby in Washington so new tax rules will support prospects of corn being refined into sustainable aviation fuel. The push has encountered resistance from environmental groups that say refining corn into biofuels has minimal benefits for the earth’s climate

• Commercial ships are facing long queues and delays in travelling through the Panama Canal. A lengthy drought in the Central American country has led to a cut in the number of vessels able to pass through one of the world’s most important trading routes.

• A Taskforce dedicated to improving policy and financial understandings of the value of nature has unveiled seven recommendations targeting the integration of nature and equity goals into global financial operations in a bid to mitigate the rising risks from biodiversity loss.

🎣 Gone Phishing

Three of these stories are true, one we've made up. Guess which:

• Mishap sees London Tube pull into an abandoned station

• Wine company has bottles seized for illegally fermenting wine in the ocean

• Streets are clogged in San Francisco as robotaxis come to a standstill

• New York gym introduces “Nap-ercise” classes for people needing sleep

Written by Colin and Ollie - Drop us a message!