The World Economic Forum’s latest report titled Fostering Effective Energy Transition 2023 documents the plateauing global energy transition, which is slowing down in the Middle East and globally, due to geopolitical volatilities and the global energy crisis. The report outlines an Energy Transition Index (ETI) which benchmarks 120 countries based on their energy systems, performance, and accessibility within the existing environment.
Their most recent report also included a scale evaluating ‘transition momentum,’ which highlights a consistent and effective transition. Equity, security, and sustainability are key pillars of an effective transition. In the past ten years, 95 percent of countries have improved their ETI score, although this progress is limited to only 41 countries. India and Singapore were the only two countries assessed that made advancements on all aspects of the energy triangle.
Embracing diversification
When we look at the Middle East’s ETI, there are many opportunities and challenges presented on its path towards effective energy transition. The average score for the MENA region came to about 50.5 on the scale, as the heavy reliance on oil revenues continues to challenge the path to a sustainable energy transition.
Renewable technologies, such as solar and wind, offer immense untapped potential for the Middle East to not only reduce its carbon footprint but also become a global leader in clean energy production. Last year, global investments in renewables reached a record of $1.3 trillion, a stark 70 percent increase from 2019. The report stresses the need for policymakers and industry leaders to prioritize investments in renewable energy infrastructure and create an environment that fosters innovation and collaboration within the sector.
Read more: Kuwait’s ambitious goal: 15 percent renewable energy by 2030
Policy guiding energy transitions
A successful energy transition in the Middle East necessitates collaboration among various stakeholders, including governments, private sector entities, and civil society. The WEF report underscores the need for effective public-private partnerships to drive sustainable investments and innovation in the energy sector. Furthermore, supportive policy frameworks that encourage the adoption of clean energy and create a level playing field for all actors are crucial. The report calls for governments to implement long-term energy strategies, incentivize renewable energy projects, and establish robust regulatory frameworks that foster market competition and ensure fair pricing.
The Middle East is presented with an unprecedented opportunity to lead the world in transitioning towards sustainable and low-carbon energy systems. By embracing renewable energy sources, diversifying the energy mix, prioritizing energy efficiency, and fostering collaboration among stakeholders, the region can unlock its tremendous potential for sustainable growth.
The WEF report highlights the necessity for a long-term vision, strategic planning, and a commitment to innovation on this energy transition journey. Through concerted efforts, the Middle East can not only address pressing climate challenges but also create new economic opportunities, bolster energy security, and enhance the well-being of its citizens. As the world pivots towards effective, sustainable energy, there is much to acknowledge within the transition itself: is it sustainable? Is it effective? And ultimately, is it inclusive?
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