International Economics, in consortium with Landell Mills and Altai Consulting, is supporting the European Commission with a detailed analysis of the clean tech manufacturing capacity in selected MENA countries. The aim is to inform policy development focused on fostering technical and financial cooperation for integrated trans-Mediterranean value chains in the clean energy sector.
The project is being implemented under Framework Services for the EU’s external action 2023.
The European Union aims for climate neutrality by 2050, requiring a major transformation of its energy system, including widespread renewable energy, energy efficiency, and decarbonization technologies. The EU’s Net-Zero Industry Act (NZIA) sets a target for manufacturing 40% of net-zero technologies by 2030. Achieving this goal may require partnerships with Middle East and North Africa (MENA) countries.
The EU and MENA have complementary advantages: the EU offers technological expertise, while MENA has low energy costs and a skilled workforce. They could collaborate to develop clean energy technology manufacturing across the Euro-Mediterranean region. In this context, the European Commission is undertaking a study to explore the potential for this industrial cooperation.
To support this effort, our Team, together with consortium partners, is conducting a comprehensive analysis of clean tech manufacturing capacity in selected MENA countries. The study will evaluate the current status and recent advancements in key clean energy technology manufacturing sectors in the target MENA countries, examine existing EU-MENA clean energy trade relations, and identify challenges and opportunities for fostering industrial partnerships between European and MENA companies.
Leveraging MENA’s clean energy potential for selected clean-tech manufacturing, along with the EU’s technological expertise and capital, can help shorten supply chains, reduce risks, and broaden the combined market. In this context, the Team will map the clean energy technology manufacturing landscape in the MENA region, focused on target countries. The study will assess their approach to clean energy manufacturing, relevant policies, and obstacles to private investment. It will also analyse the destinations of local clean tech products (domestic, EU, or non-EU markets) and examine existing EU-MENA trade relationships. A preliminary analysis will identify opportunities for value chain diversification and upgrading manufacturing capabilities based on the region’s strengths. Additionally, the project will highlight the main drivers, opportunities, and barriers to clean energy manufacturing in each country, and identify EU clean energy technology segments that could be “nearshored” to the MENA countries.
The cross-cutting nature of trade is such that it requires a comprehensive, integrated, and inclusive framework. While well-designed trade policies are vital to delivering long-term benefits for economies, so is the need for effective implementation.
At International Economics, we support the public and private sectors in navigating the policy and negotiation landscape regarding international trade. This includes establishing robust monitoring and evaluation framework through sophisticated real-time dashboards and reporting systems to ensure the best outcomes. We provide advocacy services to empower delegations and negotiators to participate effectively in trade negotiations and deliberations and advocate for their countries’ interests and positions.
