Policy Briefs
Navigating the Green Energy Transition in the MENA Region
No.
PB 130
Publisher
ERF
Date
August, 2024
Topic
Q4. Energy
In a nutshell:
- The MENA region’s over-reliance on hydrocarbon exports has led to serious economic imbalances and limited political representation, thereby creating challenges.
- Solar and wind energy production in the region is cost-effective and competitive, in addition to holding vast potential.
- Projections suggest that the MENA region could contribute up to 45 percent of the world's renewable energy with sufficient investments.
- The region’s transition to a green economy involves electrifying activities primarily reliant on fossil fuels.
- Developing essential components like solar panels and lithium-ion batteries is critical and possible.
- Collaboration is needed to navigate the challenges faced by high-emission export industries, especially for oil and gas exporters facing declining exports.
- Harnessing renewable energy locally is a key incentive to attract energy-intensive industries.
- Effective institutions and macroeconomic management are essential to minimize country risk and advance the energy transition.
- Recognizing technological uncertainty, MENA countries must stay abreast of global trends by investing in research and development (R&D) and emulating successful models for innovation.
- Attracting strategic investments and supporting research programs is crucial in contributing to global decarbonization efforts.
Research Fellows
Atif Kubursi
Professor, McMaster University
Research Fellows
Hala Abou-Ali
Professor of Economics, Faculty of Economics and...