In a nutshell
- MENA remains a global outlier in energy trends. Energy intensity in the region has increased by 30% since 1990, in contrast to a global decline of 35%. This is driven by the dominance of fossil fuel subsidies, inefficient public sector structures, and underdeveloped renewable energy infrastructure.
- Without urgent action, the region risks falling behind in the global energy transition, with significant economic and political consequences. But such actions must be pursued in ways that align with political incentives as energy transition can have distributional consequences in society. MENA countries should prioritize a phased approach to fossil fuel subsidy reform.
- Gradual reductions, coupled with public awareness campaigns and targeted social welfare programs, can mitigate political backlash and build support for clean energy initiatives. Redirecting subsidy savings toward renewable energy projects and introducing carbon taxes to fund these efforts could create a self-sustaining cycle of investment in clean energy.
Research Fellows
Abeer Elshennawy
Professor of Economics, American University in Cairo
Senior Associates
Adeel Malik
Globe Fellow in the Economies of Muslim...