Green Transition

During the age of empires, the colonisation of the Global South by imperial powers in Europe was done not only to expand their territories beyond their borders but also to exploit the colonised for their natural resources. These resources usually came in the form of precious metals and minerals, agricultural products, and human labour; which the empires deemed necessary to build influence, wealth, and strength. By the end of World War 2, these empires began to disintegrate, as colonies began to seek independence which continued beyond 1945. This shift led to the creation of a new world order centred less on empire and more on democratic rule. Although the age of empire ended, a new era of neo-colonialism was born, where former colonisers aimed to continue to obtain resources from former colonies.   Instead of colonising, former empires, great powers, and multinational corporations indirectly controlled newly independent states through economic and trade agreements, financial reliance, and foreign aid. One area in which old colonial structures and legacies are still prevalent is the Global North’s acquisition of critical minerals and rare earths from the Global South to fuel the transition from fossil fuels as an energy source to renewable energy. This exploitation is defined as green colonialism, where the Global North exports the environmental and social costs of the green transition onto states and indigenous people in the Global South. The term green colonisation is justified, as it is a combination of external control, constrained policy autonomy, unequal bargaining and uncompensated costs the Global North forces onto the Global South. This can be explained by the Global North extending the economic and social costs of green transitions to mineral-rich states while reducing the economic value of these states, leading to a colonial economic structure, which can be challenged by a resource rebellion in the form of resource nationalism, industrial policy, and contractual renegotiation if colonial conditions persist.

Growing climate risks in the MENA region pose a number of threats to the investment environment, which could jeopardise both current and future economic plans. While the progress that countries in the region have made by establishing climate action strategies and confirming their commitment to the green transition has signalled to investors that there is a market for mitigation and adaptation technologies, the impact of climate change may be moving at a faster pace. Forecasts show that temperatures in the region have been increasing at double the rate of the global average and that by 2050 they may increase by 4 degrees; potentially making many cities uninhabitable. In the next few years, it is likely that MENA countries will be faced with the challenge of simultaneously managing the impact of extreme weather conditions alongside the risks accompanying the transition towards emission reductions and sustainability policies. Are the region’s economies ready to navigate the impact that climate risks could have on investments and growth? And what could this mean for investments needed to support the growth of new technologies for the green transition?