Suchergebnisse

The wide availability of renewable energy sources in the Middle East and North Africa (MENA) is at the core of several large-scale European initiatives to support clean energy generation in the region and import part of it to Europe. Given the current socio-economic and political challenges in the MENA region, this goal could be realized if the renewable energy sector becomes a channel for local industrial development, private sector competitiveness and a source of employment and capacity building. Within the specific context of Egypt, this study assesses: (1) what is the potential for localizing the value chain for solar and wind technologies; (2) what institutional and political obstacles impede the domestic benefits; and (3) what policy recommendations could be proposed for national policy-makers and international cooperation agencies to support this development process. The study finds that while important local technological capabilities exist, specific policy measures need to be considered in several areas: energy subsidy reform, supply chain development, knowl­edge and R&D capabilities. Moreover, Egyptian policy-makers should disseminate a new narrative to mobilize alliances between various stakeholder groups to make renewable energy viable for Egypt.

The paper in a nutshell: In this paper, we present the normative concept of green industrial policy, which we define as encompassing any policy measure aimed at aligning the structure of a country's economy with the needs of sustainable development within established planetary boundaries. We elaborate on why we need green industrial policy, how it differs from conventional industrial policy, why it is faced with significantly bigger challenges, and how these can be met. What and how we produce and consume is largely shaped by markets. However, markets fail to solve many of the environmental challenges we are facing. Therefore, we need governments to intervene, thus reclaiming the primacy of public policy in setting and implementing societal objectives. While safeguarding the sustainability of human life on our planet makes green industrial policy a highly normative undertaking, the economic case for green industrial policy is strong as well – the success stories of such 'green' frontrunners as Germany and Denmark demonstrate the competitiveness potential of the new technologies. However, as shown by decades of discussion on industrial policy, government intervention almost invariably brings about risks of political capture and government failure. Green industrial policy is thus not only governed by ethical norms, but also by politics. The risks of failure are magnified by the urgency and scale of today's global environmental challenges, requiring particularly bold, comprehensive and well-orchestrated government intervention under high uncertainty. By highlighting lessons learned from practical cases of both success and failure, we show how these risks can be, and have been, managed. In particular, we submit that a broad- based social vision and contract need to be forged – supported by change coalitions and coupled with policy process safeguards, openness to policy learning, and an alignment of green industrial policies with market mechanisms.

This Discussion Paper presents a normative concept of green industrial policy, which is defined as encompassing any policy measure aimed at aligning the structure of a country's economy with the needs of sustainable development within established planetary boundaries. The paper elaborates on the rationale of a green industrial policy, how it differs from conventional industrial policy, why it is faced with significantly bigger challenges, and how these can be met. Production and consumption patterns today are largely shaped by markets. However, markets fail to solve many of the environmental challenges the world is facing. Therefore, governments have to intervene, thus reclaiming the primacy of public policy in setting and implementing societal objectives. While safeguarding the sustainability of human life on our planet makes green industrial policy a highly normative undertaking, there is also a strong economic case for green industrial policy – the success stories of such 'green' frontrunners as Germany and Denmark demonstrate the competitiveness potential of the new technologies. However, as shown by decades of discussion on industrial policy, government intervention almost invariably brings about risks of political capture and government failure. Green industrial policy is thus not only governed by ethical norms, but also by politics. The risks of failure are magnified by the urgency and scale of today's global environmental challenges, requiring particularly bold, comprehensive and well-orchestrated government intervention under high uncertainty. By highlighting lessons learned from practical cases of both success and failure, this paper shows how these risks can be, and have been, managed. This involves both the disruption of old pathways (with locked-in technologies and infrastructure as well as stranded assets) and the creation of new pathways responding to sustainability imperatives. The paper argues that a broad-based social vision needs to be forged – supported by change coalitions and coupled with policy process safeguards, openness to policy learning, and an alignment of green industrial policies with market mechanisms.

The Middle East and North Africa region has been the focal point of large investments in renewable energy, primarily due to high solar irradiation and wind speed in coastal areas. Most countries in the region have set renewable energy targets to diversify their energy mix. Investments have also been motivated by the expected socio-economic co-benefits including job creation, supplier development, increased export revenues and local tax base, and technological spillover into other industries. This study explores what Morocco can gain from renewable energy projects and which policies are appropriate to maximise their development effects. Morocco provides an interesting case to examine, as the country currently imports more than 95 per cent of its energy, and its energy demand is expected to triple by 2030. This dependence on imports provides a strong incentive for exploiting local renewable energy sources. Moreover, Morocco suffers from high unemployment and therefore needs to link new investments to job creation; but so far, its level of industrial development and competitiveness are low. To respond to these challenges, the Moroccan government has engaged in an ambitious process of developing the renewable energy industry. What distinguishes Morocco from neighbouruing countries is its commitment to linking solar and wind electricity generation projects to industrial development, employment generation and competitiveness more generally. At the same time, the potential for green electricity exports to Europe, facilitated by Morocco's proximity to Spain, offers unique market opportunities. The efforts made by Morocco's government to maintain political stability in times of turmoil across the MENA region reinforce Morocco as a potential upcoming market for solar and wind energy, as the huge investment in the first large-scale renewable energy projects show. Our studies shows how a strategic combination of complementary policies for supplier development, training, finance and technological learning could contribute to positioning Morocco as a regional and global player in the renewable energy sector.