The US is the largest consumer of avocados, accounting for almost half of global demand.

US avocado consumption has increased fourfold over the past 20 years.

Mexico, with 70% of production from Michoacán, is the world's largest avocado producer.

Mexico's avocado exports to the US reached $2.8 billion last year, supporting over 300,000 workers in Michoacán.

Avocado production has a significant environmental impact, including deforestation, water depletion, and soil erosion.

Avocado cultivation requires around 1,000 liters of water per kilogram, contributing to water scarcity in countries like Mexico.

Avocado production significantly affects local farming communities, often leading to exploitation and displacement of farmers and workers.

Sustainable farming practices like efficient irrigation and integrated pest management can mitigate negative impacts.

Fairtrade and Organic certification schemes promote sustainable avocado production and fair labor practices.

Governments, NGOs, and companies can collaborate to help small-scale farmers adopt sustainable practices.

Technology, like precision agriculture and renewable energy, can reduce avocado production's environmental impact.

The rising demand for avocados has significant implications, making sustainable practices crucial for the industry's long-term viability.

The US is the largest consumer of avocados, accounting for almost half of global demand.

Title:

Content: Go to contents
In one day, two politicians were killed in a Mexican avocado.
In one day, two politicians were killed in a Mexican avocado.
Posted February.
29, 2024 07: 26
Updated February.
29, 2024 07: 26
한국어
On the 26th, in the high-income avocado (Avocado • avocado), the world's largest producer of avocado, in Maravatio, Michoacán state, southeast Mexico, two candidates for mayor were shot dead.
Avocado is a healthy super food, especially in developed countries such as the United States.
However, in the local area of Mexico, various criminal forces around the control of circulation is very fierce, resulting in frequent violence.
According to local media reports such as "El Universal", on the afternoon of the 26th, in the center of Malabatio, Miguel Angel Reyes, the candidate for mayor and current doctor of the ruling party Morena (Morena), was shot dead by unknown persons on the way to the car.
On the same night, Armando Pérez Runa, a candidate for mayor of the opposition National Action Party (PAN), was also shot dead.
Authorities speculate that this is a crime committed by forces trying to influence the elections in the run-up to June 2, when the elections, parliamentary elections and local council elections are held simultaneously.
Michoacán is known as a region where various criminal organizations are active, such as the Jalisco New Generation Cartel (CJNG), Mexico ’ s most powerful criminal organization.
Conflicts of interest between organizations have been fraught.
Last year, the number of attacks against politicians and government associates (Michoacán) ranked fifth out of all 32 states.
At the same time, in Michoacán, avocados can be harvested four times a year, based on the mild climate, etc.
About 70% of Mexico ’ s avocado production comes from this region.
Most of this is exported to the United States, which accounts for almost half of world demand.
According to statistics from professional statistics website Statista, the per capita avocado consumption in the United States in 2022 is about 4.2 kg, an increase of about four times over 20 years ago.
With the increasing profitability of avocado cultivation, many criminal organizations vie for circulation rights.
Civic Data, a local civic group, fears that attacks by various criminal groups may reach the worst levels in history when local councils are sworn in and elections are held this year.
Illegal cultivation of avocado cultivation is also high. At least 300 square kilometers of forest have been turned into avocado plantations in 2018-2023.
In response, the authorities recently said that they will prevent the export of avocados grown on illegal farmland.
邮箱 ： donga @ donga.com

What are the countries and regions that import avocados?

US avocado consumption has increased fourfold over the past 20 years.

How has avocado consumption changed in recent years?

Mexico, with 70% of production from Michoacán, is the world's largest avocado producer.

What are the countries and regions that produce and export avocados?

Mexico's avocado exports to the US reached $2.8 billion last year, supporting over 300,000 workers in Michoacán.

Title:

Content: For foodies, workers, restaurant owners and investors on both sides of the Rio Grande border, Friday brought a sigh of relief after the United States lifted its temporary ban on imports of Mexican avocados.

The week-long pause — albeit a short one — had fueled concerns in the avocado industry, from the workers who pick the fruit in Mexico to consumers worrying about a potential shortage of a staple in the diets of many Americans.

Mexico supplies about 80 percent of the avocados eaten in the United States. The import ban — stemming from purported threats to a U.S. inspector in the Latin American country — shook a billion-dollar industry. Not only did the commotion showcase the law enforcement issues that growers are frequently subjected to in Mexico, but experts said it underscored the importance of one of the strongest and most successful bilateral trade agreements.

Before being smeared into toast or squashed into guacamole, the avocado’s life begins in an orchard in Michoacán — a western Mexican state over a thousand miles away from the border and the only one allowed to send over avocados to the United States. From a bright-green fruit hanging atop trees to its final stage inside American kitchens, the avocado’s journey from seed to food encompasses different phases of inspections and agreements between the two nations — which suddenly took a hit.

Last week, a plant safety inspector from the U.S. Agriculture Department’s Animal and Plant Health Inspection Service was inspecting avocados in Michoacán, when he saw some avocados that looked suspiciously like they came from another state, according to USDA and other industry experts. He raised a red flag and soon after, he received a voice-mail threat. Then the USDA announced it was shutting down imports until it could be assured its agents were safe.

The potential of an impending shortage quickly rippled across the industry — one that came shortly before the Super Bowl, one of the avocado’s biggest events. Soon, food establishments and groceries began worrying about keeping up with a demand that has exponentially increased throughout the past decade.

Prices for the fruit deemed “green gold” were already 100 percent higher than the previous year, said David Magaña, a senior analyst for RaboResearch Food & Agribusiness. But the year-long availability of avocados had also increased as well — indicating that a surge in demand can be attributed to different factors, he said.

For one, avocados, with their versatility and healthy fat attributes, became a food trend and Internet obsession. At the same time, the Hispanic population booms across the country — with a larger share of Latinos among Gen Z — have been “one of the major forces pulling the demand for avocados,” the analyst said.

But behind all those green juices and avocado Instagram-worthy photos is the partnership between Mexico and the United States — which has played a crucial role in enabling the market to expand.

In 1995 — a time when “fat-free” food staples ruled the market — the United States did not have much of a taste for avocados. The majority of the consumed fruit was produced in California. Avocado imports that year totaled $14.7 million, of which $700,000 came from Mexico, said David Orden, a professor in the department of agricultural and applied economics at Virginia Tech.

Mexico’s avocados had been banned in the decades before the North American Free Trade Agreement from 1994, Orden said — mostly out of a concern that weevils, scabs and other pests could enter U.S. orchards from imported products. The trade agreement opened the door for the incremental expansion of avocados.

In establishing a system in which U.S. inspectors verify that avocados are pest-free — from when they are growing in orchards to the moment they are packed into sealed trucks — Mexico has been allowed to ship its agricultural product. It started with an approved wintertime stock in Alaska back in the ’90s that has turned into a current year-long supply in all states.

“So that’s all very encouraging and great story about growth and trade agreements, and something the U.S. is trying to do in other countries as well,” Orden said.

The agreement has contributed to economic progress in both sides of the border. Last year, “the two-way food and agricultural trade reached $65 billion, including $2.8 billion in Mexican avocado exports to the United States,” U.S. Ambassador to Mexico Ken Salazar said in a statement. In Michoacán, some 300,000 workers depend on the avocado industry — including those doing the picking, the packing and the transporting of the fruit.

But their livelihoods have been threatened by encumbering cartels, who see the booming industry as a golden hen for profit, Orden said.

“It has attracted the attention of these gangs in an area where the cartels are not under control,” he said. “That’s where this story takes on a shadier color. But that’s really a law enforcement issue, and one that affects all of our relationships with Mexico.”

The USDA’s Animal and Plant Health Inspection Service said in a statement that it had worked with the Mexican government and the Association of Avocado Exporting Producers and Packers of Mexico to enact “additional measures” to safeguard the safety of its inspectors.

While the agency did not disclose what such measures encompass, they served to avert what could have been a costly avocado crisis — one that would had impacted plenty, from those picking the fruit to those biting into their avocado toasts.

“With this we ensure the exportation of fruit and provide economic certainty to farmers and day laborers,” Michoacán Gov. Alfredo Ramírez Bedolla tweeted Friday.

What are the countries and regions that produce and export avocados?

What are the positive effects of the global demand for avocados on the countries and regions that produce and export them?

Avocado production has a significant environmental impact, including deforestation, water depletion, and soil erosion.

Title:

Content: Avocado: Between Environmental Impacts and Global Market Controllers
In the Mexican state of Michoacán, which produces about 80% of the world ’ s avocado, avocado cultivation has depleted local water supplies and caused severe environmental damage, with studies showing that avocado cultivation has led to deforestation, soil erosion and chemical contamination of water sources.
(Getty)
In recent years, the avocado industry has become a staple in many diets around the world, and its popularity has increased greatly due to the multiple health benefits.
However, the demand for this fruit has led to harmful environmental effects and the emergence of a mafia that controls the production and distribution of avocados in some countries.
A Chilean study published recently said that avocado cultivation has caused severe water shortages, as well as in Peru, where large farmers have dominated the avocado market since the 1990s, where cultivation requires huge amounts of water, the production of one kilogram of avocado, consumes about 1,000 liters of water, much more than other crops such as tomatoes or oranges.
According to a report by the Water Footprint Network, the production of one kilogram of tomatoes requires about 300 liters of water, and the high water use of avocado production has led to water scarcity and depletion of aquifers in some areas.
In the Mexican state of Michoacán, which produces about 80% of the world ’ s avocado, avocado cultivation has depleted local water supplies and caused severe environmental damage, with studies showing that avocado cultivation has led to deforestation, soil erosion and chemical contamination of water sources.
According to the report, moving avocados from the production site to the market also has a significant impact on the climate, as avocados are grown mainly in developing countries, and are exported to developed countries such as the United States, Europe and Japan, and the transport of avocados over long distances contributes to greenhouse gas emissions harmful to the environment. Approximately 5.4 kg of carbon dioxide emissions per kg of avocado.
Avocado production has also led to the emergence of a mafia that controls the production and distribution of avocados in some countries, where the avocado mafia operates mainly in Mexico, where it controls the production and export of avocados, and this mafia, according to media reports, consists of criminal organizations that use violence and intimidation to control the production and distribution of avocados, and often extort money from farmers. The avocado mafia uses violence to eliminate competitors and dominate the export market, as studies have shown that these gangs are responsible for deforestation, land grabbing and violence against indigenous communities in Mexico.
According to dozens of studies published in recent years, avocado cultivation also has negative effects on local communities. In some areas, demand for avocados has led to land grabbing, community displacement, labor exploitation, and avocado cultivation in the Mexican state of Michoacán has led to the displacement of indigenous communities and the exploitation of often paid migrant workers. Some studies have shown that the expansion of avocado cultivation has displaced traditional crops, leading to food insecurity and loss of biodiversity.
According to the study, governments around the world can take various measures to mitigate the impact of this agriculture on the climate, and one way is to promote sustainable avocado farming practices that reduce water use and reduce the use of chemicals. Protect the environment, provide financial incentives to farmers and enact laws that will deter illegal and criminal practices in these countries.

What negative impact has the increased global demand for avocados had on the environment?

Avocado cultivation requires around 1,000 liters of water per kilogram, contributing to water scarcity in countries like Mexico.

What negative impact has the increased global demand for avocados had on the environment?

Avocado production significantly affects local farming communities, often leading to exploitation and displacement of farmers and workers.

What illegal activities have surfaced in avocado trade in recent years?

What negative impact has the increased global demand for avocados had on the social structure and the economy of the countries that produce them?

displacement of local communities
labor exploitation
land grabbing

What strategies can make global avocado trade more ethical?

Sustainable farming practices like efficient irrigation and integrated pest management can mitigate negative impacts.

What strategies can make global avocado trade more ethical?

Fairtrade and Organic certification schemes promote sustainable avocado production and fair labor practices.

Title:

Content: New study finds Fairtrade enhances farmer resilience and sustainability

The research assessed Fairtrade’s contribution in terms of economic resilience, social wellbeing and good governance

Being part of a Fairtrade-certified producer organisation can improve farmers’ economic resilience, social wellbeing and environmental sustainability, according to a new study commissioned by Fairtrade Germany and Fairtrade Austria.

The study, Assessing the Impact of Fairtrade on Poverty Reduction and Economic Resilience through Rural Development, suggests that Fairtrade certification also leads to good governance in co-operatives.

And researchers found that Fairtrade standards, Fairtrade pricing, and producer support programmes positively impact certified farmers and their communities compared to non-Fairtrade certified farmers, particularly in times of difficulty and distress.

They examined the same producer organisations three times over 10 years, and studied the performance of a cocoa co-op in Ghana, a coffee co-op and three banana co-ops in Peru and found their farmers had higher earnings and more savings than those in comparable non-Fairtrade organisations. For example, coffee farmer members of the Fairtrade-certified La Florida co-op in Peru reported incomes 50% higher than those of non-Fairtrade farmers.

“In times of crisis, it becomes evident that Fairtrade enhances farmers’ economic resilience and supports them in continuing their profession in challenging times,” said Tatjana Mauthofer, researcher at Mainlevel Consulting and co-author of the study. “The study shows that the two Fairtrade mechanisms – the Minimum Price and the Premium – represent a crucial safety net for farmers, their small producer organisations and eventually, also their communities.”

The research assesses Fairtrade’s contribution in terms of economic resilience, social wellbeing, good governance and environmental integrity and builds on two previous studies (in 2012 and 2018) featuring the same Fairtrade-certified producer organisations.

The study makes several recommendations, including supporting product and income diversification to reduce farmers’ vulnerability and enhance their resilience; setting up credit schemes to enable farmers to modernise their farms; and providing training on financial literacy for coffee, cocoa and banana farmers.

In this article

What strategies can make global avocado trade more ethical?

improving working conditions for employees

Governments, NGOs, and companies can collaborate to help small-scale farmers adopt sustainable practices.

Title:

Content: 00: 00
Expo 2020 Dubai Today
Sustainability as the basis for the eradication of hunger
In 2015, 193 countries met within the framework of the United Nations and pledged to end global hunger by 2030 as part of the Sustainable Development Agenda.
With less than a decade left, the odds of achieving that goal seem slim.
Clearly, improving these prospects requires governments and the private sector to simultaneously address the global food and environmental crises.
Food insecurity has increased in recent years as a result of conflict and climate change, as well as the 2019 Coronavirus (COVID-19) pandemic and the accompanying global economic crisis.
Today, as many as 811 million people suffer from hunger, including an additional 132 million people who were classified as malnourished during the pandemic, and another 3 billion people who are too poor to afford a healthy diet.
The fight against hunger has traditionally focused on producing more food – but this has come at a high environmental cost.
Agriculture consumes 70% of the world ’ s fresh water and 40% of its land.
Agriculture has contributed to the imminent extinction of about 1 million species.
Food production also generates 30% of greenhouse-gas emissions, the main cause of deforestation in the Amazon.
Policymakers seeking to eradicate hunger today face an extremely difficult dilemma: preventing billions of people from going hungry while saving the planet.
For example, fertilizer subsidies may increase crop yields and reduce hunger, but they may also lead to overuse of nitrogen, thus damaging the soil.
Similarly, livestock farming and rice farming emit methane, a greenhouse gas stronger than carbon dioxide.
The most effective way to reduce methane emissions is to tax them.
But this would cause food prices to rise, affecting poor consumers ’ access to food, and threatening the livelihoods of farmers and ranchers.
Therefore, countries need to establish an optimal level of environmental pollution that does not reduce agricultural productivity or undermine the social and economic well-being of the poor.
We need a solution that feeds most mouths without endangering the planet.
Reaching a workable plan requires looking at diets holistically – a major departure from the current, isolated approach.
To avoid any unintended consequences, it is critical to quantify any data swaps.
Turning data-driven strategies into action on the ground also requires concerted efforts to boost public and private investment.
No single intervention will solve the problem of hunger.
But studies suggest that a combination of key measures aimed at increasing farm productivity and reducing food loss and waste could reduce the number of people chronically hungry by 314 million in the next decade, and provide 568 million people with healthy diets.
Expanding national safety nets across countries, including school feeding programmes, could provide an additional 2.4 billion people with access to a healthy diet by 2030.
Another study shows how a series of low-cost initiatives could end hunger for 500 million people by 2030 while also reducing greenhouse-gas emissions in line with the goals of the 2015 Paris climate agreement.
These include agricultural research and development projects to produce food more efficiently, information services that provide farmers with weather forecasts and crop prices, literacy programs for women – who account for nearly half of small farmers in developing countries – and expanded social protection.
All this can be achieved if rich countries double their food security assistance to $26 billion a year until 2030, and the poorest countries maintain their annual investments at $19 billion.
Automation can help manage trade-offs between food production and environmental protection.
For example, equipment called AgBots, which are similar to small farm vehicles, can recognize and remove weeds.
Because they don ’ t use expensive chemical herbicides, they can help reduce the cost of weeding by 90% and protect the soil from potentially harmful chemicals.
Similarly, artificial intelligence technologies and cloud solutions can detect pest infested areas using drone imaging.
The data collected can help guide and inform decisions by farmers regarding irrigation, agriculture and fertilization, and indicate the best time of year for the sale of a particular crop.
Governments must now work with the private sector to make high-tech precision farming systems available at lower costs, especially to small farmers.
The good news is that private companies are increasingly keen to promote sustainability – including through “blended finance ” schemes that combine initial investment by governments or multilateral financial institutions with subsequent trade finance.
This approach can effectively reduce the risk of private financing and encourage investment in improving food systems.
For example, the governments of the United States and the Netherlands are working with German coffee company Neumann Café Group and three European banks to provide a $25 million loan to smallholder farmers in Colombia, Kenya, Honduras, India, Indonesia, Mexico, Peru and Uganda to promote sustainable coffee production.
Banks initially rejected the proposal because small farmers are usually excluded from financial services, leaving them unable to prove their creditworthiness and turning them into a high-risk category in the eyes of commercial lenders.
But banks signed on to the scheme after the Dutch government and Neumann Café Group agreed to cover the first 10 percent of the losses if the initiative did not work, with the US government absorbing 40 percent of the remaining losses.
Critics will argue that countries should be individually responsible for reversing rising levels of hunger through domestic policies.
While this may be true, other problems such as greenhouse-gas emissions cannot be addressed by a single country or region and need to be addressed and funded globally.
Saving the planet should not necessarily come at the expense of feeding the poor, and vice versa.
If governments properly organize their efforts, there is still a chance to eradicate poverty by 2030.
* Chief Economist of the Food and Agriculture Organization of the United Nations.
opinion @ albayan.ae
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What strategies can make global avocado trade more ethical?

Technology, like precision agriculture and renewable energy, can reduce avocado production's environmental impact.

What strategies can make global avocado trade more ethical?

The rising demand for avocados has significant implications, making sustainable practices crucial for the industry's long-term viability.

How has avocado consumption changed in recent years?

What strategies can make global avocado trade more ethical?


The Middle East is transforming its energy landscape by heavily investing in solar energy.

The region is ideal for solar energy production due to its high average annual solar radiation, particularly in countries like Saudi Arabia and the UAE.

The Arab Clean Energy Initiative aims to reach 80 GW of renewable energy capacity by 2030, with projects like Egypt's 1,800 MW Benban Solar Park already underway.

The UAE, Saudi Arabia, and Oman are investing in renewable energy, a circular carbon economy, and green hydrogen, respectively.

Egypt's Electricity Law No. 87 of 2015 and the Egyptian Electricity Regulatory Authority promote renewable energy investments through tax exemptions, incentives, and feed-in tariffs.

Countries like Jordan, Egypt, and Iraq are offering incentives, including loans and subsidies, to encourage the adoption of solar energy.

The UAE, Egypt, and Saudi Arabia have set renewable energy targets, with the UAE aiming for a tripling by 2030, Egypt for 42% by 2035, and Saudi Arabia launching a national program.

The region's energy transition is expected to boost the local economy, cut CO2 emissions, and increase energy productivity.

Integrating solar energy into the grid can reduce fossil fuel dependence and decrease greenhouse gas emissions.

The MENA region is expected to play a pivotal role in the global energy transition, with 34% of electricity investment in renewables.

The region is expected to supply 10-20% of the global hydrogen market by 2050, generating $120-200 billion annually.

The UAE has announced a "Net Zero by 2050 Initiative" with $163 billion investment, while Saudi Arabia aims to increase renewable energy to 50% by 2030.

Gulf states aim for net zero carbon emissions by 2050 or 2060, despite OPEC forecasting rising oil demand through 2045.

The energy transition speed will impact GCC countries' creditworthiness.

Low-cost hydrocarbon capacity will support a stable transition, while slowing global growth risks Middle Eastern economies.

The Middle East is transforming its energy landscape by heavily investing in solar energy.

Title:

Content: UBS: The outlook for sovereign bonds in the Middle East improves significantly
UBS ’ s recent EMB report shows a significant improvement in the outlook for sovereign bonds in the Middle East in 2021 thanks to higher crude oil prices (37% since the beginning of the year), higher vaccination rates against COVID-19, and reform measures in key countries in the region.
Rising government and export revenues are likely to boost fiscal and current account balances this year, although the level of fiscal gaps remains much higher than before COVID-19.
The pandemic has underscored the urgent need for countries for economic diversification, structural reform and increased private sector participation.
The region ’ s large, low-cost hydrocarbon capacity will underpin a stable transition to a renewable energy scenario, but a rapid decline in oil demand will quickly expose the vulnerabilities of governments in the absence of major economic reforms.
Ali Janoudi, Head of Wealth Management for the Middle East and Africa at UBS, said: “Shifting away from fossil fuels is a priority for GCC governments, and we view positively the reform measures they are adopting and working on, the high rates of vaccination against COVID-19, as well as the high price of crude oil, so the GCC economies appear to be on the right track. ”
Michael Bolger, Chief Investment Officer for Emerging Markets at UBS Global Wealth Management, said: “Future indicators suggest that the speed of the transition to renewable energy will be one of the key determinants of the creditworthiness of the GCC countries.
The report assesses how these countries face the challenges of the future as part of two possible energy transition paths.
It examines in detail the economies, financial positions and policies of key sovereign bonds in the Middle East and provides insights into possible scenarios and their potential implications for investors.
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The region is ideal for solar energy production due to its high average annual solar radiation, particularly in countries like Saudi Arabia and the UAE.

Title:

Content: General Supervision
Elham Aboul Fath
Editor-in-Chief
Thank you for your patience.
General Supervision
Elham Aboul Fath
Editor-in-Chief
Thank you for your patience.
World Future Energy Summit.
Green finance and climate change lead day 2
The second day of the World Future Energy Summit (WFES), held at the Abu Dhabi National Exhibition Centre (ADNEC) in the UAE, kicked off today.
The summit is the premier annual forum for future energy and sustainability.
The day ’ s events focused on green finance, with Boris Johnson, the former Prime Minister of the United Kingdom, stressing the urgency of correcting climate change and thinking outside the box, and providing inspiring views on the obstacles to investing in renewable energy and ways to develop it during a session entitled “Financing Global Approaches to Low-Carbon Economies ”.
“It takes a lot of in-depth social studies, practical solutions and a lot of financial support – governments around the world spend a lot of money to defend themselves against other governments, but we don ’ t spend that much money to fight everyone ’ s first enemy, climate change.
He believes that finding practical solutions requires a serious approach to financing and establishing an assembly line for simple renewable energy projects, so that tangible results can be achieved as soon as possible, which is not possible without setting aside the side issues that usually concern us or we will not be able to solve the problem for another 10 years.
Ahmed Bahieldin, General Manager and Commercial Officer for Europe, Middle East and Africa (EMEA) at GE Vernova, an independent public company spin-off of GE ’ s energy, wind and electricity business, also joined the panel.
“Time is an important factor, especially as there is a lot of capital looking for projects in advanced markets, especially in the areas of renewable energy sources and new technologies, and regulatory reforms and the structuring of the revenue model give more room for growth.
The second day of the summit also saw the launch of the Solar Outlook 2024 report, officially released by the Middle East Solar Industry Association at the World Future Energy Summit.
The report highlights the growing contribution of solar energy to the MENA region ’ s ongoing energy transition from traditional fossil fuels to renewables, amid continued manufacturing boom, population and economic growth, as well as concerns about climate change and environmental sustainability.
Solar Energy
According to the report, the Middle East and North Africa (MENA) region today has one of the highest levels of solar energy potential in the world, with countries such as Saudi Arabia, the United Arab Emirates, Morocco and Egypt contributing on average annual solar radiation exceeding 2,000 kilowatt-hours per square meter per year.
While the regional solar growth trajectory is expected to continue, the report reveals that it is still well below the levels required to replace the current fossil fuel contribution of 87%, with solar providing just over 2% of the current energy mix in the MENA region.
Denisa Vines, Secretary General of the Middle East Solar Industry Association, said: “The COP28 pledge to increase renewable energy capacity and double energy efficiency with the support of 124 countries has set ambitious targets to increase the deployment of renewable energy and energy efficiency measures by 2030, but we still face many challenges to achieve these goals, especially in the energy sector within the Gulf region. After 2030, a variety of technologies are expected to be market-ready, offering scalable solutions to decarbonize the energy sector, enabling a more effective role for renewables, energy efficiency and zero-emission technologies.
The broad pursuit of ambitious targets by 2030 is focused on public utility projects, which may overshadow the needs of the commercial and industrial sectors, and this underscores the importance of considering a balanced approach to energy deployment to ensure inclusive and sustainable development.
COP28 Pledges
Speaking at the Solar and Clean Energy Conference, Dr. Ralph Blumenthal, Head of Networks Programs Middle East at Siemens, praised the ongoing discussions on digitization and the great importance of integrating renewables into smart grids to help achieve the goals of the COP28 pledge.
Batteries are key if we want to triple renewables by 2030, and increase them nine-fold by 2050. Batteries are not only storage, they are essential to grid regulation and reduce disruptions that may occur during renewable energy generation. Today, around 1,500 GW of renewable energy has been installed globally and is ready for deployment, but cannot be integrated into networks. It operates 100% on renewable energy, but national grids have not yet been able to effectively integrate renewables on a large scale.
Constructive discussions and sessions on global energy issues and solutions will continue tomorrow with the Electric Mobility Forum, which will comprehensively examine the role of clean and independent transport in changing the future of city design, and what is needed to unlock the potential of investing in expanding electric mobility.

The Arab Clean Energy Initiative aims to reach 80 GW of renewable energy capacity by 2030, with projects like Egypt's 1,800 MW Benban Solar Park already underway.

Title:

Content: Chairman of the Board of Directors and Editors
I'm sorry.
Mohamad Elbaz
Chairman of the Board of Directors and Editors
I'm sorry.
Mohamad Elbaz
Economy: Benban and the Gulf of Suez are among the largest renewable energy projects
Economic Middle East magazine, which specializes in economics and energy, said that the Benban solar park and the Gulf of Suez wind project in Egypt are considered among the largest renewable energy projects in the Middle East.
Renewable Energy Projects in the Middle East
The Middle East has long relied on oil and gas, not only for revenue but also for power generation, but in the past years, the region has positioned itself as a leader in the renewable energy sector, boasting numerous renewable energy projects.
From 2023 to 2028, Mordor Intelligence expects the renewable energy market in the Middle East to grow by 13.43% annually.
The Arab Clean Energy Initiative was launched by the International Renewable Energy Agency (IRENA), and during the Arab Economic and Social Development Summit of 2013, the League of Arab States adopted the initiative, with leaders pledging to increase renewable energy generation capacity in the region from 12 GW in 2013 to 80 GW by 2030.
Benban Solar Park
Located in Aswan, Egypt with a capacity of 1,800 megawatts, Benban Solar Park is valued at $4 billion and includes 41 solar power plants, one of the largest solar PV parks in the world, spanning 37 square kilometers and containing 7 million photovoltaic panels, this initiative is a component of Egypt ’ s Renewable Energy Feed Tariff (FiT) program, which was unveiled in September 2014.
Gulf of Suez Wind Power Project
In November last year, ACWA Power and the Sovereign Fund of Egypt (TSFE) signed a memorandum of understanding, and together they will invest in a 1100 MW wind power project in Jebel Zeit and the Gulf of Suez. The project is one of the largest onshore wind farms in the world, and aims to provide power to more than one million households and reduce annual CO2 emissions by 2.4 million tons.

The UAE, Saudi Arabia, and Oman are investing in renewable energy, a circular carbon economy, and green hydrogen, respectively.

Title:

Content: Environmental, Social, and Governance (ESG) issues have become increasingly prominent on the global stage as organisations recognise the need to integrate sustainability into their operations.

As the Middle East moves towards a low carbon future, sustainability has become a top priority for organisations and governments across the region.

Sheikh Mohammad bin Rashid, Prime Minister and Ruler of Dubai announced while launching the National Hydrogen Strategy that the UAE is to invest up to AED 200 billion ($54.5 billion) in renewable energy.

The launch of a AED 4 billion renewable energy plant in Dubai,  and the world’s largest waste-to-energy plant are proof of sustainability climbing the agenda.

With COP 28 being held in the UAE this year, there is a renewed sense of urgency on climate change action, and the net-zero carbon target is being prioritised through policies and actions.

After all, sustainability will boost the UAE’s economic competitiveness, drive innovative policy and improve investment opportunities.

The region has seen notable sustainability innovations, including Saudi Arabia’s rapid transition to a circular carbon economy, Bahrain’s state oil company refinancing a $2.2 billion sustainability-linked corporate finance facility, and Oman’s exploration of green hydrogen as a clean energy source.

However, the Middle East faces its own unique challenges in implementing ESG practices, especially around accurate sustainability reporting and implementing early regulations to fill in previous gaps.

Other challenges that hinder the progress of the region’s ESG agenda include the talent gap, how corporates in the region address the need to implement ESG practices, as well as data availability.

Regulatory frameworks

While standardised frameworks and reporting guidelines begin to form, the lack of clear regulations can hinder consistent measurement and disclosure of ESG performance.

Global frameworks have now become more widely adopted in the region such as the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB), and the newly published International Sustainability Standards Board (ISSB).

The gap in standardisation previously posed challenges for investors and stakeholders who relied on transparent and comparable ESG data for decision-making, however, we are starting to see drastic changes in this area.

Data availability

Many companies in the Middle East still face challenges in collecting, managing, and reporting ESG data, which can hinder their ability to effectively assess and manage their sustainability performance.

Data is the first step to measure any status, but also measure progress. Improving data collection mechanisms and investing in robust reporting systems will be instrumental in addressing this challenge.

ESG talent gap

Organisations need individuals with specialised knowledge and expertise in ESG practices to drive sustainable strategies effectively. Alongside this specialised knowledge, the industry also needs innovators, risk takers, agitators for change, mentors, and communicators in the field. There is however, a shortage of skilled professionals in the region with a deep understanding of ESG principles to drive innovative solutions.

Bridging this gap requires investment in education and training programmes to build a skilled workforce capable of integrating ESG considerations into business practices. Universities and training institutions are therefore increasingly offering courses and programmes on sustainability and ESG and businesses are partnering with academic institutions to develop tailored training initiatives and internships, nurturing a pipeline of talent equipped with the required knowledge and skills.

These efforts will cultivate a sustainable workforce capable of implementing and driving ESG practices in the Middle East.

Implementation by region’s corporates

Despite the challenges, corporations in the Middle East are embracing ESG practices, recognising the importance of sustainability and responsible business conduct. We see this through accelerated electrification and the increase of decarbonizing energy supply.

The GCC’s oil-producing nations have made efforts to diversify energy sources, transitioning towards net-zero carbon fuels for transportation. Investments in renewable energy, such as solar and wind, aim to mitigate environmental impacts and promote a low-carbon economic future transforming the economic system and supply chain.

Additionally, social considerations are gaining prominence. Companies are addressing social issues through initiatives that promote diversity, inclusion, and employee welfare.

Governance practices are also being strengthened to ensure transparency, accountability, regulatory reforms and ethical conduct.

While obstacles in integrating ESG practices persist in the Middle East, corporates in the region are proactively embracing sustainability and responsible business practices.

That the Middle East is emerging as a leader in ESG adoption is apparent through their fullfillment of the UN SDG goals which has driven positive environmental, social, and governance outcomes for businesses and society as a whole.

Egypt's Electricity Law No. 87 of 2015 and the Egyptian Electricity Regulatory Authority promote renewable energy investments through tax exemptions, incentives, and feed-in tariffs.

Title:

Content: Egypt ’ s move towards renewable energy represents a major shift in its energy policy, reflecting global sustainability trends and local environmental needs.
This detailed analysis explores Egypt ’ s legal framework for renewable energy projects, highlighting growth opportunities and regulatory challenges that must be overcome.
Aspirations for renewable energy and strategic plans
Egypt has set targets looking to increase its renewable energy production in line with global initiatives such as the Paris Agreement to combat climate change, and this commitment is reflected in Egypt ’ s strategic plans, which outline the goals and mechanisms needed to integrate renewable energy into the national electricity grid.
The legal framework governing renewable energy in Egypt
Central to Egypt ’ s renewable energy policy is the Electricity Law No. 87 of 2015 and its subsequent amendments. These legal provisions create a regulated environment for the development and regulation of renewable energy sources. The law gives the Egyptian Electricity Regulatory Authority the authority to oversee and implement regulations, ensuring effective and sustainable management of the sector ’ s growth.
Government incentives and international cooperation
The Egyptian government has provided various incentives under these laws to encourage investment in the renewable energy sector, including tax exemptions, tariff exemptions, and other financial incentives designed to make renewable energy projects more feasible and attractive to investors.
Emerging investment landscape in renewable energy
Egypt ’ s move towards renewable energy has opened up new investment opportunities, especially in the solar and wind sectors, as the liberalization of the energy market has made it accessible to private investors, both local and international. Successful renewable energy projects in Egypt are a testament to the sector ’ s potential, as they provide useful insights into market dynamics and future growth trajectory.
Detailed legal framework for renewable energy
The Electricity Law No. 87 of 2015 and its amendments form the basic legal structure governing the production, distribution and regulation of electricity, including renewable energy. This law defines the roles of various government agencies, such as the Egyptian Electricity Regulatory Authority (ERA), in overseeing the sector, paving the way for private sector participation and introducing regulatory mechanisms such as feed-in tariffs, which have been effective in attracting investments.
Renewable Energy Law and Investment Law
Egypt ’ s Renewable Energy Law and Investment Law form an important part of the state ’ s approach to advancing the renewable energy sector, and the Renewable Energy Law specifically addresses the development, promotion and use of renewable energy sources such as solar, wind and hydropower.
It also provides a legal framework for various renewable energy initiatives, detailing the responsibilities of both public and private entities involved in the production and distribution of renewable energy, and plays a key role in establishing regulatory mechanisms, including the establishment of feed-in tariffs, which are designed to offer attractive prices for renewable energy that feeds the national grid, thus stimulating private investment.
The Investment Law, especially Law No. 72 of 2017, complements the Renewable Energy Law by providing a set of financial incentives to promote investment in the renewable energy sector, including tax exemptions, where new investments in renewable energy can be exempted from certain taxes for a specific period.
In addition, the law provides for lower tax rates on profits generated by renewable energy projects, making these projects more financially attractive, and other benefits under the investment law may include exemptions from customs duties and other fees on equipment and machinery imported for use in renewable energy projects.
Together, these laws aim to create a supportive and financially viable environment for renewable energy projects and encourage local and international investors to participate in Egypt ’ s renewable energy sector. The government ’ s focus is not only to increase renewable energy production, but also to ensure that these projects contribute to sustainable economic growth and environmental conservation.
Regulatory Challenges and Bureaucratic Obstacles
Despite the supportive legal framework, developers often face challenges in dealing with the bureaucratic landscape, where the process of obtaining licenses and approvals can be complex, involve multiple government bodies and rigorous environmental assessments, and delays in these processes can hinder project timelines and affect the overall viability of renewable energy projects.
Andersen Egypt has expertise in liaising with government bodies and obtaining the necessary permits and approvals for large-scale renewable energy projects.
Environmental impact assessments and approvals
Despite the supportive legal framework, developers often face challenges in dealing with the bureaucratic landscape, where the process of obtaining licenses and approvals can be complex, involve multiple government bodies and rigorous environmental assessments, and delays in these processes can hinder project timelines and affect the overall viability of renewable energy projects.
Andersen Egypt has expertise in liaising with government bodies and obtaining the necessary permits and approvals for large-scale renewable energy projects.
Environmental impact assessments and approvals
Despite the supportive legal framework, developers often face challenges in dealing with the bureaucratic landscape, where the process of obtaining licenses and approvals can be complex, involve multiple government bodies and rigorous environmental assessments, and delays in these processes can hinder project timelines and affect the overall viability of renewable energy projects.
Andersen Egypt has expertise in liaising with government bodies and obtaining the necessary permits and approvals for large-scale renewable energy projects.
Environmental impact assessments and approvals
EIA ensures that environmental considerations are integrated into project planning and implementation. Obtaining approval for EIA can be a major hurdle, and requires thorough documentation and adherence to environmental standards.
Incentives to develop renewable energy
The Egyptian government offers several incentives to encourage the development of renewable energy in Egypt. These include tax incentives, duty exemptions and preferential tariffs under the “feed-in tariff ” system. These incentives aim to ease the financial burden on developers and make renewable energy projects more economically viable.
The following incentives can also be applied to large-scale renewable energy projects in Egypt:
A feed-in tariff system (FiTs) is a system of prices set by the Egyptian government that allows producers to sell renewable energy to the national grid, providing long-term contracts and ensuring a stable and predictable revenue stream for renewable energy projects.
• Tax incentives: Reductions in corporate income tax rates, exemptions from customs duties and sales taxes on imported renewable energy equipment, and other tax-related benefits are available to encourage investment in renewable energy
• Government subsidies and grants: direct financial contributions to reduce the initial capital costs of establishing renewable energy projects.
Land allocation: The government may offer land at subsidized prices or on special terms for the construction of renewable energy facilities, especially in areas with high renewable energy potential.
Regulatory support: Simplified approval and licensing procedures help reduce bureaucratic hurdles and accelerate the implementation of renewable energy projects.
Opportunities in the Renewable Energy Sector
Egypt ’ s evolving legal and regulatory environment offers significant opportunities for growth in the renewable energy sector. The government ’ s commitment to increasing renewable energy production has opened up prospects for investment, especially in solar and wind power. The sector ’ s potential is further enhanced by Egypt ’ s geographical advantages, such as high solar radiation and favorable wind conditions.
Challenges in Egypt ’ s Renewable Energy Sector
Dealing with the regulatory environment for renewable energy projects in Egypt poses many challenges.
They include:
Complex approval processes: Obtaining the necessary permits and approvals can be time-consuming and complex, involving multiple government bodies.
Infrastructure Development: Adequate infrastructure is still being developed to support renewable energy projects, including grid connectivity.
Despite government incentives, securing financing for renewable energy projects can be difficult due to anticipated risks and high upfront costs.
Market volatility: The renewable energy market is subject to fluctuations in technology costs, global energy prices and policy changes, which may affect the viability of the project.
• Technological advancements: Keeping pace with rapid technological advances in renewable energy while complying with regulatory standards is a major challenge.
Opportunities for growth and development
Despite these challenges, Egypt ’ s renewable energy sector offers many opportunities:
Government support and incentives: Strong government support for renewable energy, manifested in its legal framework and incentives, creates an enabling environment for growth.
Geographical advantages: Egypt ’ s geographical location provides an abundance of solar and wind energy resources, making it an ideal location for renewable energy projects.
• Private sector participation: The liberalization of the energy market has opened doors for private sector investment, both domestically and internationally.
• Sustainable Development Goals: In line with global sustainability goals, renewable energy projects in Egypt contribute to environmental conservation and economic diversification.
• Job creation and economic growth: The renewable energy sector has the potential to create jobs and stimulate economic growth, contributing to the overall development of Egypt.
Concluding remarks
The Egyptian legal framework for renewable energy projects, which is characterized by a mixture of opportunities and challenges, is a reflection of the country ’ s commitment to sustainable energy development, and although dealing with the regulatory trend may be complicated, the potential rewards and opportunities to achieve the desired goals are great.
As Egypt continues to improve its legal and regulatory environment, maintaining flexibility will be key for companies looking to take advantage of opportunities in this dynamic sector.
The content of this article is intended to provide a general guide to the subject matter.
Specialist advice should be sought about your specific circumstances.

Countries like Jordan, Egypt, and Iraq are offering incentives, including loans and subsidies, to encourage the adoption of solar energy.

Title:

Content: Among them Iraq.
5 Arab Countries Leading Solar Energy Support Programs
2023-11-07 | 02: 22
Alsumaria News – Economy
Solar subsidy and loan programs in Arab countries continue at a time when the need for alternative energy sources is acute, as the effects of climate change intensify, and the global energy crisis that began with the Russian invasion of Ukraine on February 24, 2022 intensifies.
Solar energy in Iraq, Jordan, Lebanon, Egypt and Kuwait receives official support, either through direct legislation approved by the parliaments of these countries, or through loans made available by government and official banks there, or through national and national projects provided by the ministries of energy and electricity, according to the specialized energy platform.
In the coming years, support for solar energy in Arab countries is expected to gain momentum, with many declaring their commitment to achieving carbon neutrality by mid-century and plans to increase the contribution of renewable energy to their electricity mix by 2050.
* Support for solar energy in Jordan
The most prominent support received by solar energy in the Arab countries is that provided by Jordan, through a range of programs supervised by the Ministry of Energy and Mineral Resources, as the solar loan project in Jordan witnessed a new step on Sunday, October 29, as part of efforts to motivate citizens to adopt clean energy.
The Agricultural Credit Corporation signed an agreement with the Renewable Energy Promotion Fund to support the second phase of the program to install solar cell systems for farmers to cover the interest on the loans, according to a press release.
* Solar Loans in Jordan
The Minister of Agriculture and Chairman of the Agricultural Lending Corporation, Khalid Al-Hanifat, said that the agreement will reduce the cost of production for farmers, as it targets all animal and plant agricultural activities, as it covers beneficiaries with a ceiling of 20 thousand dinars (28.1 thousand US dollars) without interest.
At the same time, Jordan is preparing for the third phase of the strongest support program witnessed by solar energy in the Arab countries, the installation of solar cells in homes, the second phase of which ended in July 2023, according to information monitored by the specialized energy platform.
This program aims to support the use of solar energy in Jordanian homes, as well as the installation of solar heaters, which will reduce the cost of electricity for citizens, while reducing the energy import bill for the state.
* Solar Loans in Lebanon
As part of the efforts to support solar energy in the Arab countries, the Lebanese effort, which aims to alleviate the energy crisis, is highlighted through an important program to grant solar energy loans, which are an appropriate and sustainable solution to overcome the energy threat, as described by the Lebanese government a year ago.
The installation of solar energy in the homes of Lebanese will solve the crisis of high electricity bills, as these loans are provided to the low- and middle-income by the initiative "Loans to the low- and middle-income", in cooperation with the Lebanese Center for Energy Conservation.
Loans for the installation of solar energy systems and plants in Lebanon range from 75 million to 200 million liras ($2,590 to $6,900) per person, up to a maximum of 80% of the project cost, and at an interest rate of 4.99% per annum, depending on the specialized energy platform.
* Information on Solar Loans in Lebanon
It is noteworthy that the solar energy market in the Arab countries is witnessing increasing growth, especially in Lebanon, which, despite its major crisis, witnessed during 2020 about 313 projects authorized, with a capacity of 14 MW, before this number increased, and the country records 662 applications for the installation of solar plants, during the period from October 2021 to March 2022.
According to the Lebanese Center for Energy Conservation, the installation of solar power plants in Lebanese homes will save citizens the value of high bills, which makes them able to save the value of the loan within two to three years, especially since the repayment is limited to paper lira only.
Solar energy in Egypt
In August 2023, the Committee on Energy and Environment in the Egyptian House of Representatives set a number of rules to increase the number of small household units to consume electricity from solar energy, as part of its recommendations on the Economic and Social Development Plan for 2023-2024.
The Committee stressed the need to develop alternative renewable sources of energy, to take action to mitigate and adapt to climate change and its consequences, while working to reduce greenhouse gas emissions, and to accelerate the transition to low-carbon vehicles.
Solar energy in Egypt
Prior to these directives, Egypt witnessed one of the strongest solar energy subsidy programs in the Arab countries, with four banks, including government banks, providing loans of large amounts to support the installation of solar energy systems and their stations for homes, through various repayment programs.
HSBC Egypt, one of the largest solar loans in the Arab world, is offering EGP 2 million ($64,675) with a repayment period of about seven years, while QNB is offering a loan of EGP 400,000 ($12,930) for seven years.
Misr State Bank also offers a financing program worth up to EGP 500,000 ($16,168) and a repayment period of up to 10 years, while the Commercial International Bank (CIB) offers a loan worth EGP 350,000 ($11,300) with a repayment period of 5 years.
* Solar energy in Kuwait
As the State of Kuwait prepares to complete new phases of the Shaqaya CSP project, the State continues to encourage citizens to use solar energy in their homes, as part of its drive to achieve carbon neutrality and reduce emissions by mid-century.
The State of Kuwait adopts a unique approach that distinguishes it from all consumers of solar energy in the Arab countries, as it encourages citizens to sell electricity in excess of their consumption to the government, generated from solar panels installed on rooftops.
* Solar energy in Kuwait
According to an analysis by Mordor Intelligence, seen by the specialized energy platform, the solar energy market in Kuwait is expected to register a compound annual growth rate of more than 7%, especially as this market is achieving a significant recovery, despite the damage caused by the outbreak of the Coronavirus three years ago.
Despite this, Kuwait ’ s solar market is not growing in line with expectations, as initial spending is large, and there is a lack of multiple government programs during the forecast period, but over time internal subsidies continue, leaving the country with the most important solar projects in the Arab countries.
At the same time, the Kuwaiti government is working to provide solar energy to citizens by building huge power plants from an inexhaustible renewable source, especially as Kuwait enjoys a very high brightness, which qualifies it to enter this market from its widest doors.
Iraq to finance solar installation
As Iraq faces one of the difficult electricity crises, caused by the lack of Iranian gas supplies, and seeks alternative sources, both external (such as Qatari gas) and internal (such as the tendency to burn gas associated with electricity generation), Baghdad continues to provide one of the most important forms of solar energy subsidies in Arab countries.
In January 2022, the Central Bank of Iraq issued controls to finance electricity generation systems from renewable energy, as the governor of the bank signed the first circular that allows citizens and institutions to buy systems and power plants from solar energy.
Solar energy in Iraq
This initiative is in line with the State ’ s commitment to the decisions of the Paris Climate Conference, as the interest on loans provided to citizens to install solar power plants did not exceed 1%.
While the value of loans ranged between 7 million Iraqi dinars (4 thousand and 800 dollars) for stations 3 kilowatt hours, and one billion dinars (685 thousand dollars) for large projects in residential squares, according to the website of the Central Bank of Iraq.
Source: Energy Platform
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The UAE, Egypt, and Saudi Arabia have set renewable energy targets, with the UAE aiming for a tripling by 2030, Egypt for 42% by 2035, and Saudi Arabia launching a national program.

Title:

Content: General Supervision
Elham Aboul Fath
Editor-in-Chief
Thank you for your patience.
General Supervision
Elham Aboul Fath
Editor-in-Chief
Thank you for your patience.
Arab Monetary Fund: Growing interest of Egypt and countries in the region in renewable energy
The Arab Monetary Fund (AMF) has confirmed the increasing interest of Arab countries in renewable energy with the aim of diversifying the national mix of energy sources and working to reduce harmful emissions to the environment through the adoption of clean energy technologies and the safe disposal of carbon.
In the 55th issue of its series of introduction booklets entitled “Renewable Energy ”, the Fund stated that the UAE aims to triple its renewable energy production capacity by 2030 and increase the contribution of clean energy in total energy production to 30% by 2030, reaching 38% by 2035.
He pointed out that the Arab Republic of Egypt aims in its integrated energy strategy until 2035 to reach 42% of the total electricity produced in 2035, where the current contribution of renewable energy including hydropower in the total electricity produced is about 12%.
The IMF pointed out that within the framework of Saudi Arabia ’ s National Renewable Energy Program, which is a strategic initiative launched within the Kingdom ’ s Vision 2030, and the Custodian of the Two Holy Mosques Renewable Energy Initiative, the Kingdom aims to increase its share in renewable energy production, balance the local energy mix and meet its commitments to avoid emissions.
The IMF pointed out that Oman ’ s Vision 2040 includes goals related to achieving energy security through diversifying energy sources, increasing reliance on renewable energy, and rationalizing consumption, and aims to increase the proportion of renewable energy consumption in total energy consumption to reach 20% in 2030, rising to between 35% and 39% in 2040.
Qatar National Action Plan for Climate Change 2030
According to the IMF, the Qatar National Action Plan for Climate Change 2030 stressed the importance of expanding renewable energy projects and the integration of renewable energy sources in the energy mix in Qatar is an opportunity to liberalize energy production for export, reduce the amount of oil and gas consumed in desalination and power generation, and reduce greenhouse gas emissions.
The IMF pointed out that the energy management strategy in Tunisia aims to enhance energy efficiency by reducing the national consumption of primary energy by 30%, and the development of renewable energy sources by raising the contribution of renewable energy in electricity production to 30% by 2030, while in Algeria the government ’ s action plan aims to achieve a production capacity of 15,000 GW by 2035 based on renewable energy sources, especially solar energy.
In its comprehensive energy sector strategy for the years 2020-2030, Jordan aims to increase the contribution of renewable energy to electricity generation to 31% in 2030 compared to 21% in 2020, while Morocco ’ s energy strategy aims to increase the share of renewable energies in electricity generation from 20% to more than 52% in 2030.
The IMF pointed out that the rest of the Arab countries such as Iraq, Bahrain, Libya and the United States are working to enhance their use of renewable energy sources, especially solar energy, which Arab countries rely on a lot in light of the Arab region's advantages related to the solar belt that surrounds it, which is characterized by the availability of bright sunlight and heat that extends for long periods during the year.
The Arab Monetary Fund pointed out that the global interest in expanding the use of renewable and clean energy sources, in light of the ongoing challenges related to achieving energy security that have emerged clearly globally on the one hand, and the increasing demand for energy on the other hand, in addition to the growing environmental challenges that push towards the transformation of energy systems to clean, sustainable and affordable energy.
The IMF pointed out that despite the increasing interest in renewable energy, its contribution to the global energy mix remains modest, with several challenges related to the ability of renewable energy to meet the requirements of reliability and sustainability in relation to the availability of certain weather and climate conditions such as intensity and longevity of sunlight and heat, wind speed and water flow strength.

The region's energy transition is expected to boost the local economy, cut CO2 emissions, and increase energy productivity.

Integrating solar energy into the grid can reduce fossil fuel dependence and decrease greenhouse gas emissions.

The MENA region is expected to play a pivotal role in the global energy transition, with 34% of electricity investment in renewables.

Title:

Content: Global News
The World Today - A pivotal and promising role for the countries of the region in the transition to renewable energy
You are now following the news of a pivotal and promising role waiting for the countries of the region in the transition to renewable energy from the news section of the world and now we leave you with full details
MARCH 3, 2023 02: 16 AM - The Middle East and North Africa (MENA) region has always played a pivotal role in the oil and gas markets, but this role will not stop if the world decides to move to low-emission sources of energy.
According to APRICORP, renewable energy investments are expected to account for 34 percent of electricity investment in the Middle East and North Africa between 2022 and 2026.
According to McKinsey & Company, the Middle East and North Africa receives 22 to 26 percent of the solar radiation energy on Earth, due to its geographical location.
Solar energy is not the only thing that distinguishes the region, as countries in this region are likely to be the source of 10 to 20 percent of the global hydrogen market by 2050, according to Roland Berger.
Hydrogen is likely to generate annual revenues of $120 billion to $200 billion by 2050, and many countries in the region have already started projects to transport and export hydrogen to energy-consuming countries.
The region has about 10 percent of global carbon capture and storage capabilities.
Despite the many challenges that countries in the region must face in this regard, the Middle East and North Africa (MENA) region has the potential to play a pivotal role in the global energy transition.
The most prominent question about green finance comes in this promising region.
Nael Amin, senior director of financial services at Arthur D. Little, said on this week ’ s episode of Dot Gulf ’ s World of Energy program that green finance in the Middle East and North Africa, including green bonds, had reached $3.8 billion in 2020.
This amount, according to Amin, has grown significantly during the year 2022, specifically in 4 countries, Turkey, the Arab Emirates, Egypt and Saudi Arabia, due to the development in the region and increased investments in this sector, as well as providing some important requirements in this sector.
Amin explained that besides financing, the region is witnessing progress in many areas in terms of dealing with environmental factors, which is an attractive factor for investors.
Over the past two years, banks have significantly increased their legislation in this area, as each of the Gulf countries has implemented the necessary standards and requirements to support the business environment in the field of green energy.
There are challenges, according to Amin, the most prominent of which is the data challenge, as he pointed out that banks are approaching the activities of customers to know the necessary data on funded projects, for example, in the case of financing the construction of a building, you must know the amount of energy that will be consumed by this building.
The Gulf States are working and collaborating with each other to understand the framework that must be adopted to develop infrastructure in the field of renewable energy and promote sustainability, which will positively impact and support green investment in general in the region.
We hope that we have succeeded in conveying the full details of a pivotal and promising role that awaits the countries of the region in the transition to renewable energy.
In God ’ s care and protection.
You may also read.

The region is expected to supply 10-20% of the global hydrogen market by 2050, generating $120-200 billion annually.

The UAE has announced a "Net Zero by 2050 Initiative" with $163 billion investment, while Saudi Arabia aims to increase renewable energy to 50% by 2030.

Title:

Content: The Guardian: The Middle East is facing a ‘ resurrection ’
And Mecca may not be livable by the end of the century.
Friday 29 October 2021 05: 27 pm / Jerusalem time + 2GMT
London / Sama /
Titled “Resurrection Soon: A Reluctant Middle East Forced to Awareness of the Climate Crisis, ” The Guardian ’ s diplomatic editor Patrick Wintour said that Hurricane Shaheen hit Oman some time ago, the first tropical cyclone to reach this point west into the Gulf.
In Basra, southern Iraq, power has been cut off frequently as a result of this summer ’ s temperature of 50 degrees Celsius, forcing residents to move in their cars to get cold.
Kuwait broke the record for the hottest day of 2016 of 53.6 degrees Celsius, and this summer temperatures were very high, with floods in Jeddah and more recently in Mecca at a time when temperatures in Saudi Arabia have increased by 2 percent and the maximum temperature of 2.5 percent since the 1980s.
Qatar is the world ’ s highest emitting country and the world ’ s largest producer of liquefied gas (LNG), and public spaces are equipped with air conditioners.
In Tehran, pollution annually kills 4,000 people a year, and in Khuzestan province, citizens have blocked streets and burned tires due to drought as a result of mismanagement, U.S. sanctions and a deadly atmosphere.
In the United Arab Emirates, the climate crisis is estimated to cost $6 billion a year, the highest in terms of health costs.
The salinity of the Gulf increased with the proliferation of desalination plants by 20%, which affected marine life and biodiversity.
Conditions are expected to worsen at a time of rising temperatures, humidity and sea levels.
Warming rates in the Middle East are twice as high as in the world.
By the end of the century, if the dangerous predictions are correct, Mecca may not be fit for life, making the Hajj season dangerous if not catastrophic.
Large swaths of the Middle East have come to resemble the Afar region of Ethiopia, a vast area without human settlement that pushes towards the Red Sea.
The glittering cities of the Gulf may face the dilemma of rising water levels themselves.
We do not speak of the day of judgment, but of the day of judgment.
Jim Crane, an energy researcher at Rice University in Houston, said: “This is really a difficult topic because the interests of the ruling elites are at odds with the interests of the citizens.
The ruling elite depends on oil resources for the survival of their regimes.
They want to keep the oil trade in order to keep them in power.
Their system is based on oil leasing, but the population ’ s ultimate interests lie in a sustainable climate. ”
Zeina Khalil Haj, founder of Greenpeace in the Middle East, believes that the region is suffering from double pressure: “With increasing demands for energy change, a region that relies on fossil energy, oil and carbon for its economic survival, but cannot continue this dependency.
There will be no oil market but with climate change, they are required to increase efforts to survive.
The extreme climate is changing people ’ s lives on a daily basis and there is no choice but to go green. ”
The West ’ s persistent appetite for fossil energy has led the region to build car-based cities, shiny skyscrapers filled with air conditioners and shopping malls.
It must look for ways to avoid self-destruction, and it must be, according to Thomas Friedman, the Prometheus moment for the Middle East and the search for creative and creative ways.
In fact, the region has been reminded for a decade that it has to make the transition from oil.
Although the moment when oil demand will reach its highest point remains controversial, and depends on a number of assumptions about regulation, technology and customer behavior, the point I mentioned is 2040, after which demand will decline.
But the International Energy Organization ’ s “Net Zero ” report sees the peak as 2050 and by comparison suggests a reduction in oil demand from 88 million barrels per day in 2020 to 72 million barrels per day by 2030, and 24 million barrels per day in 2050, a 75% decline between 2020-2050.
The report argues that the Gulf has three factors underpinning the transformation: capital, sun, and vast, empty spaces.
Until recently, the Gulf states, including Iran, did not feel the desire to shift away from fossil energy to this extent.
When asked, Saudi Oil Minister Prince Abdulaziz bin Salman said it was “a sequel to La La Land, ” meaning that the report and its writers do not know what is happening.
"If I wanted to worry about the IEA's expectations, I would be on Prozac all the time," he said.
Qatar ’ s Energy Minister Saad al-Kaabi said reducing oil and gas production levels would affect the supply process and laughed at “the enthusiasm surrounding the transition. ”
The Organization of Petroleum Producing and Exporting Countries (OPEC) forecasts that the process of oil demand will increase significantly through 2045 and the share of oil in global energy demand will fall from 30% to 28%, which is not a green revolution.
Gulf states still rely on gas and oil exports, accounting for 70 percent of goods exported from Kuwait, Qatar, Saudi Arabia and Oman.
Oil resources account for more than 70% of the total resources of Kuwait, Qatar, Oman and Bahrain.
In Vision 2030, published by Prince Mohammed bin Salman in 2016, he promised to turn the country into an important industrial hub.
World Bank figures show that Saudi Arabia relies on 75% of its oil resources for its budget.
Aramco, which is making its mark on global carbon emissions, is not diversifying at the same pace as Shell or BP.
Instead, it announced it would increase crude oil production capacity from 12 million barrels per day to 13 million barrels per day by 2027.
Haj believes that the shift away from oil may require a psychological shift from the consumer mentality, “The Gulf has not yet reached this kind of discussion.
If you see the way of life in the UAE and Qatar, it is based on inexhaustible consumption, and I fear we are still a long way from that in terms of politics and readiness. ”
Iran is the largest country in the world in terms of carbon emissions by population, followed by the UAE in second place and Saudi Arabia in 13th place.
Of course, Gulf rulers at events such as the Glasgow climate conference can defend themselves by saying that their region is not the primary source of carbon emissions, and historically, collectively, accounts for 4.7% less than carbon emissions and pollution from the United States, Europe and China.
The Middle East exports oil, but pollution is the responsibility of those who import it.
But the region ’ s leaders have come to grips with the problem not because of Western pressure but in response to citizens ’ demands, the goose has realized that the eggs, the oil, are no longer golden but brown.
The UAE is the first country to say it has moved to ratify the Paris Treaty and is the least dependent Gulf state on oil for its government resources.
Last week, she announced the “Net Zero by 2050 Initiative ” with an initial investment budget of $163 billion and appointed the Minister of Climate Change and Environment, Maryam Al Muhairi.
The announcement came after the government ordered awareness sessions in all its ministries since June for 80 days.
It was the first country in the Gulf to adopt a net zero domestic consumption policy.
The plan is still in its infancy and some of its features are unclear, but the direction is clear.
It promised to rely on renewable and nuclear energy by 50% to generate electricity by 2050.
Abu Dhabi ’ s national oil company said it would get 100 percent of its electricity from the nuclear reactor and solar power.
The Mohammed bin Maktoum Solar Park will be the largest in the world with a capacity of 5,000 megawatts.
Gulf states are competing with each other, with news reports that Qatar has appointed a climate minister, Bahrain aiming for net zero carbon by 2050 and Kuwait announcing a plan to reduce carbon emissions.
Saudi Arabia does not like to be late.
It announced that it would increase the proportion of renewable energy from 0.3% to 50% by 2030.
The plan is to plant 10 million trees in the coming decades.
Over the weekend, the kingdom organized a summit of the Green Middle East Initiative, attended by John Kerry and Britain ’ s Prince Charles.
It promised to reach net zero carbon emissions in its territory by 2060.
The main reason the Gulf states have been slow to shift away from oil and its commodities is that they have made them rich and helped them anesthetize their citizens.
Their loyalty was bought through a series of subsidies for water, electricity, fuel and tax breaks.
These dynamics were different from Iraq, Lebanon and to a lesser extent Iran, but the situation is changing with the emergence of local environmental groups.

Gulf states aim for net zero carbon emissions by 2050 or 2060, despite OPEC forecasting rising oil demand through 2045.

The energy transition speed will impact GCC countries' creditworthiness.

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Content: Archive / Economics
3 Factors Supporting Sovereign Bonds in the Middle East
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DAMMAM (Reuters) - The outlook for sovereign bonds in the Middle East has improved this year thanks to an increase in oil prices since the beginning of 2021 by about 37%, in addition to higher vaccination rates against COVID-19 and reform measures in key countries in the region, according to an economic report.
Rising government and export revenues are expected to boost fiscal and current account balances this year, the report said, noting that the level of fiscal gaps remains significantly higher than before COVID-19, while the pandemic underscored countries ’ urgent need for economic diversification, structural reform and increased private sector participation.
Ali Janoudi, head of wealth management for the Middle East and Africa at UBS, said: “Shifting away from fossil fuels is a priority for governments, and we look positively on the reform measures they are adopting and working on, the high rates of vaccination against COVID-19, as well as the rise in crude oil prices.
There are still a lot of risks, but the GCC economies seem to be on the right track.
Michael Bolger, Chief Investment Officer for Emerging Markets at UBS Global Wealth Management, said: “Future indicators suggest that the speed of the transition to renewable energy will be one of the key determinants of GCC creditworthiness.
The region ’ s large, low-cost hydrocarbon capacity underpins a stable transition to a renewable energy scenario, but a rapid decline in oil demand would quickly expose government vulnerabilities in the absence of major economic reforms, according to the report.
Risks that could have a negative impact on the region ’ s economies include: slowing global growth, tightening of major central banks in their monetary policies, falling commodity prices, regional tensions, as well as tough Chinese regulatory measures, and a strong US dollar.
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Low-cost hydrocarbon capacity will support a stable transition, while slowing global growth risks Middle Eastern economies.