Energy Transition in the Middle East and North Africa Region: Regional Solutions for Climate Change Challenges Amid Economic Sanctions

Abstract

As the world grapples with the urgent priority of transitioning to a net-zero future, there exists a shared need to make all efforts to reduce anthropogenic greenhouse gas emissions, mostly caused by burning fossil fuels. The Middle East and North Africa (MENA) region plays an important role because of its oil and natural gas output. Additionally, this region has experienced significant conflict and numerous wars. This article will focus on one of the many challenges that some key states in the MENA region, with a main focus on Iran, are facing in their energy transition. Several countries in the MENA region are or have recently been subject to some form of economic sanctions. Sanctions appear to have had a material impact on these countries’ abilities to fulfill their contributions to transitioning to a net-zero economy. Research suggests that the chief obstacles they face regarding that transition is the lack of access to the latest technologies, a dearth of financing, limited or often no direct investments in low carbon industry, diplomatic isolation, and the concomitant economic volatility caused by sanctions, which in sum, take away from the financial capacity of a target country to save and invest for the transition to net zero. Therefore, it is crucial to revisit sanctions laws and policies, ensuring that they do not hinder the global community from achieving its climate goals. This article proposes establishing a regional ‘climate savings account’ to serve as a strategic mechanism to balance geopolitical interests and environmental goals.