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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.

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External Publication

Long-term transmission rights and dynamic efficiency

We compare market designs for access regulation of a bottleneck transmission line, and study their impact on investment decisions by an incumbent firm with an existing dirty technology and entrant with an uncertain future low-carbon technology.

By: Georgios Petropoulos and Bert Willems Topic: Energy & Climate, Finance & Financial Regulation Date: June 16, 2020
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Blog Post

One last push is needed to improve the Just Transition Fund proposal

The European Parliament and the Council still have an opportunity to improve the Just Transition Fund by refocusing it on social support and basing fund allocations on more granular information that takes into account not only countries’ needs but also their green ambitions.

By: Aliénor Cameron, Grégory Claeys, Catarina Midões and Simone Tagliapietra Topic: Energy & Climate, European Macroeconomics & Governance Date: June 11, 2020
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Past Event

Past Event

(Em)powering the recovery

What role will the energy sector play in the post crisis recovery and will this recovery be a green one?

Speakers: Kadri Simson, Francesco Starace and Guntram B. Wolff Topic: Energy & Climate Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: May 28, 2020
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Past Event

Past Event

What help is needed for the EU neighbourhood to come through the COVID-19 crisis?

At this event European Commissioner Várhelyi and EBRD President Sir Suma Chakrabarti will discuss what Europe is doing to help it's neighbourhood respond to the COVID-19 crisis.

Speakers: Sir Suma Chakrabarti, Maria Demertzis and Olivér Várhelyi Topic: European Macroeconomics & Governance, Global Economics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: May 12, 2020
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Blog Post

COVID-19 is causing the collapse of oil markets: when will they recover?

This oil crisis will be solved only by a pick-up in global oil demand, once lockdowns are lifted and the economy is restarted.

By: Simone Tagliapietra Topic: Energy & Climate Date: April 23, 2020
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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
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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
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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
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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
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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
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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
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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
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