COP28 latest: controversies, commitments and climate finance

Irbis Index November 2023

To view the full Index for November 2023 click here.

Irbis & Partners is very happy to announce the launch of its brand-new website. Please feel free to browse around 👇

News

COP28: COP28, the latest United Nations Climate Change Conference, has been marked by significant discussions on climate finance, controversial comments from its president, and new commitments from countries and corporations, aimed at addressing the challenges of climate change.

• COP28 President Sultan Ahmed Al Jaber, who is also the head of the UAE's national oil company ADNOC, has faced criticism over his comments on fossil fuels. He stated that there is no scientific scenario that suggests the phase-out of fossil fuels will achieve this target, adding that it would be impossible to stop burning fossil fuels and sustain economic development without taking the world “back into caves”. Al Jaber expressed surprise at the criticism and emphasized the importance of respecting the science.

• Finance Day at COP28 saw executives from the world's biggest banks and investment firms exploring new funding structures and partnerships to devise viable pathways to a low-carbon economy.

• Health Day at COP28 highlighted the connection between the climate crisis and health, with events focusing on public-private partnerships for healthcare climate action and unlocking relevant financial and political commitments.

• More than 20 nations, including the United States, Britain, and France, pledged to triple nuclear capacity by 2050 to help cut fossil fuel usage.

• More than 100 countries have pledged to triple the world's renewable energy and double energy efficiency by 2030. This pledge was launched at the COP28 climate summit, and New Zealand, one of the few OECD countries not on the list of signatories, has expressed support for the underlying goals of the pledge.

• Artificial intelligence (AI) has been a prominent topic at COP28, with AI providers offering their technology to help countries achieve their emissions goals.

Global climate targets under threat without a secure wind energy supply chain finds new report Bottlenecks in the wind energy supply chain may lead to a 700 GW gap in meeting climate targets by 2030.

• The current supply chains are not suited for a net zero world, requiring stronger collaboration between government and industry.

• The wind supply chain is highly globalized, with a focus in China for rare earth element refining and component manufacturing.

• Policy and regulatory issues around permitting, grids, and investment certainty are hindering wind pipeline volume. Addressing these issues is essential for wind industry growth.

• Standardization, industrialization, regionalization, and providing clear demand signals are crucial for the wind industry. (download full report here)

Five container shipping giants call for tighter carbon regulation of their industry Five maritime shipping CEOs called for tighter greenhouse gas (GHG) emissions regulation over their industry.

• They revealed plans to set an end date for fossil-only powered new builds and urged the International Maritime Organization to create the regulatory conditions for a transition to green fuels.

• The container carriers stressed the importance of shipping achieving IMO’s 2030, 2040, and net-zero 2050 greenhouse gas targets.

• Transitioning from fossil to green fuels at scale and pace is the only realistic way to meet those targets for an industry that accounts for 2-3% of global GHG emissions.

• The companies expressed their shared conviction that regulation can play a key role in mitigating the cost of the green transition. (link)

A.P. Møller-Maersk to invest in integrated supply chain capabilities in Southeast Asia Maersk announced an investment of over $500M to expand its supply chain infrastructure in Southeast Asia. The investment aims to strengthen the company's footprint in warehousing, distribution, air, inland logistics, ocean, and terminal operations in the region.

• Maersk plans to add approximately 480,000 sqm of warehouse capacity by 2026.

• Maersk intends to build green fuel infrastructure, pilot biodiesel fuel, and introduce EV trucks by mid-2024.

• The investment is aimed at supporting Southeast Asia’s emergence as a global production hub and consumption powerhouse.

• It is expected to create job opportunities, enhance automation efficiencies, and scale the company’s network footprint in the region.

• The investments seek to deliver an end-to-end supply chain and logistics solution, offering greater visibility and control to customers.

• Maersk has a significant presence in Singapore, Malaysia, Indonesia, and the Philippines. (link)

Shein files for IPO in the U.S. Shein, a fast-fashion company founded in China and now based in Singapore, has confidentially filed for an initial public offering (IPO) in the United States.

• Shein has confidentially filed to go public in the United States, with Goldman Sachs, JPMorgan Chase, and Morgan Stanley as lead underwriters on the IPO.

• The company has not yet determined the size of the deal or the valuation at IPO, aiming for a share sale in 2024 and targeting up to $90 billion in the float.

• The move to go public comes amid a struggling market for IPOs and U.S. scrutiny, with recent lackluster stock market debuts. Investor sentiment has been more positive recently, which may influence Shein's decision to go public.

• Shein had initiated low-profile conversations with potential investors for the IPO. It is not immediately clear if the company has filed with the China Securities Regulatory Commission for the U.S. IPO.

• Shein ships the majority of its products directly from China to shoppers by air in individually addressed packages. The company's direct shipping strategy helps it avoid unsold inventory piling up in warehouses and avoid import taxes in the U.S.

• Shein is likely to attract significant investor interest due to its disruptive presence in the retail space.

• U.S. IPOs have raised about $23.64 billion so far this year, compared to $21.3 billion during the same period last year. (link)

Zara founder buys Amazon logistics centre in Dublin for EUR 225M Amancio Ortega has purchased a logistics centre in Dublin, Ireland for EUR 225M.

• This marks the first time Ortega's firm has invested in logistics real estate in Ireland.

• The industrial and logistics property purchased in Dublin's Baldonnell Business Park covers 1.2M square feet, with 630,000 square feet occupied by Amazon.

• The Ortega family investment vehicle cashed EUR 2.2B in Inditex dividend this year and has been actively investing in logistics centers, luxury buildings, and renewable energy projects. (link)

Tech

Syrup Tech Raises $17.5 Million Syrup Tech Inc. has raised $17.5M in funding led by Accel, with investors including Google’s Gradient Ventures and 1984 Ventures.

• Syrup Tech Inc. has raised $17.5 million in a funding round led by Accel.

• The funding round brings Syrup’s valuation close to $100 million.

• The company’s software aims to use AI to reduce retail industry waste.

• They help customers avoid issues such as excess inventory or running out of stock. (link)

Other headlines 

UPS: Hong Kong continues to be an engine of growth - UPS Newsroom

Bestpass Acquires Fleetworthy Solutions - DC Velocity

Detroit unveils wireless charging road - Yahoo Finance

Canada’s Lion Electric Lays Off 10% of Workforce - Transport Topics

Amazon to expand AWS Supply Chain platform - DC Velocity

Strike Cost Ford 100,000 Vehicle Sales, $1.7 Billion in Profits - Transport Topics

New CMA CGM service adds to intra-Asia capacity boost for Indian shippers - Journal of Commerce