Energy

Azerbaijan will host COP29 at the end of this year. Being selected to host the most important international climate event is a major achievement for the South Caucasus country, though the spotlight it brings will come with its own challenges due to Azerbaijan’s poor human rights record and worsening relations with the West.

In 2017, Saudi Arabia’s Public Investment Fund and a number of Jordanian banks established the Saudi-Jordanian Investment Fund to channel $3 billion into the Jordanian economy. Two SJIF projects provide relevant case studies of the challenges facing Jordan’s broader efforts to attract more FDI and drive economic development.

At the September G20 meeting, host country India, along with the United States, the European Union, France, Germany, Italy, Saudi Arabia and the United Arab Emirates (UAE), signed a memorandum of understanding, a non-binding commitment to work towards building two separate “corridors”, essentially envisioning a political line that is connected by some new and some existing, or already under construction, physical infrastructure.

The Oct. 7 Hamas attack against Israel and the latter’s ongoing military operation in Gaza have stalled progress in the development of the India-Middle East-Europe Economic Corridor and raised questions about its prospects for eventual completion. The IMEC faces multiple viability challenges, but none of them are insurmountable; thus, its participants are unlikely to abandon it.

The renewed violence in Gaza could not have come at a less opportune time for the climate agenda in the Middle East. From energy economics to environmental degradation, the ripple effects of conflict will complicate the path ahead.

Outside of the security risks brought about by war, the Israel-Hamas conflict has yet to result in major changes in the regional natural gas market.

With no new interregional or international gas pipelines currently planned, gas-poor Morocco should consider alternative import schemes, such as LNG import via ISO tank containers, utilizing its well-developed port, rail, and road infrastructure.

The state of Israel and the terrorist group Hamas are engaged in an existential conflict, each threatening the survival of the other, as well as the survival of civilians, both Palestinian and Israeli, caught in-between. The conflict could widen into a regional or even global crisis. For energy markets and the global economy, the risks are considerable and could swerve or accelerate in response to multiple variables.

As the existential threat of climate change continues to intensify, the future of fossil fuels has been thrust into the international spotlight. Reducing hydrocarbon production and consumption has gained traction in international climate talks amid warnings that the window to avoid catastrophic warming is closing quickly.

At the start of 2023, optimism was high that China would see a rapid recovery in consumer spending and an acceleration in GDP growth. Since then, however, the world’s second-largest economy has been in the doldrums. China’s ailing economy is a problem not just for China but for the entire world. A prolonged slowdown or a sudden financial crash, were it to occur, would ripple across global markets — including the countries of the Middle East, whose economies have become increasingly intertwined with that of China.

Georgia’s near total reliance on imported Russian wheat forms an extremely dangerous vulnerability that compromises both its food security and sovereignty. Fifteen years after the 2008 Russia-Georgia war, Tbilisi finds itself depending on Russia for over 90 percent of its wheat supply amidst a growing global shortage. In 2022, NATO reiterated its commitment to Georgia, pledging to help build Georgia’s resilience and uphold its political independence.

Hydrogen has been touted as an energy solution for the future and a leading mitigation technology against climate change. Among the states of the GCC, it has come to be seen as central to their energy transition strategy and a means to retain the region’s hegemonic position within global energy relations.

Last week saw a flurry of diplomatic activity between Baghdad and Ankara. The top priorities in the talks were oil exports, the presence of the PKK in Iraq, and Iraq’s water crisis. The outcomes have been unimpressive, but there is an opportunity for Iraq to shake things up and improve its bargaining position, at least on the oil export issue, possibly more.