Download publication

External Publication

The impact of the global energy transition on MENA oil and gas producers

Endowed with half of the world's known oil and gas reserves, the Middle East and North Africa (MENA) region is cornerstone of the global energy architecture. This article argues that – together with the pressing need to create jobs opportunities for a large and youthful population – the possibility of the world moving more aggressively towards a low-carbon future should represent a key argument for the implementation of economic reform programmes.

By: Date: August 5, 2019 Topic: Energy & Climate

Endowed with half of the world’s known oil and gas reserves, the Middle East and North Africa (MENA) region is cornerstone of the global energy architecture. The global low-carbon energy transition poses critical questions to MENA oil and gas producers, as it may imply sustained pressure on their development models, which rely heavily on hydrocarbon revenues. Without economic reforms, this may translate into macroeconomic unbalances, and ultimately put at risk established social contracts in the region. The sharp drop in oil prices that began in 2014 fostered MENA hydrocarbon producers to launch ambitious economic reform programmes aimed at increasing the diversification of their economies, notably by developing their non-hydrocarbon sectors. This article argues that – together with the pressing need to create jobs opportunities for a large and youthful population – the possibility of the world moving more aggressively towards a low-carbon future should represent a key argument for the implementation of these economic reform programmes. That is, MENA producers might use the potential prospect of lower global hydrocarbon demand and prices to overcome their rentier state model, and pursue the economic diversification plans never duly implemented in the past.

Read article More on this topic
 

Blog Post

COVID-19 and broken Collusion: the oil price collapse is one more warning for Russia

In the midst of the COVID-19 epidemic, the sharp collapse in the oil price has received little attention. Brent fell by 30% on 9 March, the largest fall since the 1991 Gulf War. The Russian ruble followed suit and its tumble highlights Russia’s continued dependence on resource extraction. The episode should be taken as a sign of things to come in a world where Russia’s main customers are going green.

By: Niclas Poitiers and Marta Domínguez-Jiménez Topic: Global Economics & Governance Date: March 19, 2020
Read about event More on this topic
 

Past Event

Past Event

CANCELLED: India-EU Partnership: New Vistas for the Next Decade

Policymakers, academics and private sector actors from the EU and India come together to work on common issues and explore further areas of cooperation.

Speakers: Yamini Aiyar, Suman Bery, Navroz K Dubash, Alicia García-Herrero, Rajat Kathuria, Partha Mukhopadhyay, Ananth Padmanabhan, Georgios Petropoulos, André Sapir, Shyam Saran, Simone Tagliapietra and Marc Vanheukelen Topic: Global Economics & Governance Location: India International Centre, Lodhi Gardens, Lodhi Estate, New Delhi, Delhi, India Date: March 12, 2020
Read article More on this topic More by this author
 

Podcast

Podcast

The European Green Deal rules

When it comes to global carbon emission is a tax the best form of defence? To make the European Green Deal work, the EU is considering a levy on carbon-intensive goods manufactured beyond its borders. But will a carbon border tax spawn a massive bureaucracy and lead to accusations of protectionism? To find out, Nicholas Barrett talked to Georg Zachmann and Ben McWilliams from Bruegel and Gabriel Felbermayr, President of the Kiel Institute for the World Economy.

By: The Sound of Economics Topic: Global Economics & Governance Date: March 9, 2020
Read about event More on this topic
 

Past Event

Past Event

On gains, losses, and trade-offs: the case of Border Carbon Adjustment

How will the border carbon adjustment be implemented and what will be the implications?

Speakers: Gabriel Felbermayr, André Sapir and Georg Zachmann Topic: Energy & Climate Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: March 5, 2020
Read article Download PDF More on this topic
 

Policy Contribution

FDI another day: Russian reliance on European investment

Most foreign direct investment into Russia originates in the European Union: European investors own between 55 percent and 75 percent of Russian FDI stock. This points to a Russian dependence on European investment, making the EU paramount for Russian medium-term growth. Even if we consider ‘phantom’ FDI that transits through Europe, the EU remains the primary investor in Russia. Most phantom FDI into Russia is believed to originate from Russia itself and thus is by construction not foreign.

By: Marta Domínguez-Jiménez and Niclas Poitiers Topic: Global Economics & Governance Date: February 17, 2020
Read article More on this topic More by this author
 

Podcast

Podcast

Will Iran disrupt the global economy?

Last Friday, Qassem Soleimani, head of the Iranian Revolutionary Guards’ QUDS force, was killed by an American airstrike outside Baghdad airport. The Ayatollah was not pleased and Tehran has promised to retaliate. At the time of recording, the world is still waiting to see how Iran might respond. Some of have speculated that they could disrupt the world’s oil markets by closing the Strait of Hormuz, which acts as a vital artery for around a third of the world’s liquefied natural gas and almost a quarter of the world’s oil. Today, oil prices surpassed $70 and if tension escalates the price is bound to grow. How dependent is the global economy on affordable Middle Eastern fossil fuel? This week, Nicholas Barrett is joined by Maria Demertzis and Niclas Poitiers to discuss how the US-Iran hostilities are affecting global economy.

By: The Sound of Economics Topic: Global Economics & Governance Date: January 6, 2020
Read article Download PDF More on this topic More by this author
 

Policy Contribution

The European Union-Russia-China energy triangle

Concern is growing in the European Union that a rapprochement between Russia and China could have negative implications for the EU.

By: Georg Zachmann Topic: Energy & Climate Date: December 9, 2019
Read article More on this topic More by this author
 

Opinion

Why border carbon adjustment is important for Europe’s green deal

The European Commission President-elect Ursula von der Leyen is pursuing ambitious environmental targets, notably to reach zero net emissions across the EU by 2050. This transition requires pricing emissions to incentivise producers to develop greener alternatives, while avoiding putting domestic producers at a disadvantage.

By: Guntram B. Wolff Topic: Energy & Climate Date: November 27, 2019
Read about event More on this topic
 

Past Event

Past Event

Enhancing climate policy through co-creation

First PARIS REINFORCE Stakeholder Council Dialogue

Speakers: Haris Doukas, Ajay Gambhir, Georg Zachmann, Dirk-Jan van de Ven, Jorge Moreno, Alexandros Nikas, Vangelis Marinakis, Glen Peters, Alexandre Koberle, Marc Vielle, Andrea Herbst, Rocco De Miglio, Annela Anger-Kraavi, Baptiste Boitier, Lorenza Campagnolo, Zsolt Lengyel and Joeri Rogelj Topic: Energy & Climate Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: November 21, 2019
Read article More on this topic More by this author
 

Opinion

Under swollen tides, Venice says more about our future than our past

While tides high enough to submerge Venice used to be rare, occurring every two to three decades, they have now become increasingly regular. Five of the ten highest tides in recorded history occurred over the last 20 years, with the most recent one having occurred just last year. Is this the new normal?

By: Simone Tagliapietra Topic: Energy & Climate Date: November 18, 2019
Read article More on this topic More by this author
 

Podcast

Podcast

How to make the European Green Deal work (Part Two)

Nicholas Barrett and Guntram Wolff discuss industrial policy and the social consequences of the green deal with Grégory Claeys and Simone Tagliapietra.

By: The Sound of Economics Topic: Energy & Climate Date: November 14, 2019
Read article More on this topic
 

Opinion

Four pillars to make or break the European Green Deal

The recipe for a successful European Green Deal is as simple as it is breath-taking: to intelligently promote deep decarbonisation by accompanying the economic and industrial transformation this necessarily implies, and by ensuring the social inclusiveness of the overall process.

By: Simone Tagliapietra, Grégory Claeys and Georg Zachmann Topic: Energy & Climate Date: November 14, 2019
Load more posts