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231. The Scramble for the Eastern Mediterranean: Energy and Geopolitics

Author:
Valeria Talbot
Publication Date:
08-2021
Content Type:
Working Paper
Institution:
Italian Institute for International Political Studies (ISPI)
Abstract:
Over the past few years, the Eastern Mediterranean has become a major hotspot for both natural gas and geopolitical competition. Natural gas discoveries in the last decade have attracted growing interest from regional countries and beyond. However, recent escalations in tensions and outright confrontations suggest that competition goes beyond the scramble for energy. Indeed, natural gas is just one of the factors that contribute to shaping security and geopolitical dynamics in the Eastern Mediterranean, which has emerged as a crucial strategic area in the broader Mediterranean and the Middle East. Moving from the analysis of these interconnected factors, this Report examines the strategy and the plethora of interests of regional and international players, as well as the interplay between cooperative and competitive dynamics in the region. What are the geopolitical, security, and energy interests of the countries involved? What are the implications on the regional security context of the moves and policies of regional and international powers?
Topic:
Natural Resources, Geopolitics, Gas, Strategic Competition, and Energy
Political Geography:
Middle East and Mediterranean

232. Financing energy innovation: internal finance and the direction of technical change

Author:
Joëlle Noailly and Roger Smeets
Publication Date:
09-2021
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
Achieving the goals of the Paris Agreement and of climate neutrality by 2050 in the European Union will require mobilizing financial investments towards clean energy innovation. This study examines the role of internal finance (cash flows and cash holdings) and financing constraints for innovation in energy technologies. We construct a dataset for 1,300 Europeans combining balance-sheet information and patenting activities in renewable (REN) and fossil-fuel (FF) technologies and estimate the sensitivity of patenting activities to's internal finance. We use count estimation techniques and control for a large set of-specific characteristics and market developments in REN and FF technologies. We find that patenting activities ofs specialized in REN innovation are significantly more sensitive to a shock in cash flows thans specializing in FF innovation. Hence, our results emphasize that innovatives in clean energy may be particularly vulnerable to financing constraints. We discuss the implications of these results for energy transition policies aiming to redirect finance towards clean energy R&D.
Topic:
Environment, Science and Technology, European Union, Finance, Sustainable Development Goals, Innovation, and Energy
Political Geography:
Europe

233. North Korea’s Energy Crisis: What Are the Problems?

Author:
Kyung-sool Kim
Publication Date:
10-2021
Content Type:
Commentary and Analysis
Institution:
East Asia Institute (EAI)
Abstract:
North Korean businesses run by state-supplied energy have not been properly operated due to a sharp decrease in energy supply. Long-standing energy shortages have paralyzed the state energy supply and demand system, causing further disruptions in statewide functions. In this commentary, Kyung-sool Kim, Honorary Senior Research Fellow at the Korea Energy Economics Institute, states that this resulted from a complex accumulation of various problems: the characteristics of the regime, national capacity, state monopoly of production factors, the lack of a market, limitations of policy functions, the absence of capital and technology, and international isolation. The author argues that radical changes such as systemic reform and market opening are necessary to resolve these issues. The author adds that North Korea should be free from international isolation and propagate change in order to utilize external support.
Topic:
International Relations, Energy Crisis, and Energy
Political Geography:
China, Asia, and North Korea

234. The Role of Blockchain in Green Hydrogen Value Chains

Author:
Nicola De Blasio and Charles Hua
Publication Date:
11-2021
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
A rainbow of colors currently dominates almost every conversation on the transition to a low-carbon economy: green, grey, blue, turquoise, pink, yellow[1] - an ever-increasing palette to describe the same colorless, odorless, and highly combustible molecule, hydrogen. The only difference is the chemical process used to produce it. The colors of hydrogen are crucial for the energy transition because each production pathway generates different amounts of greenhouse gas emissions. For example, while grey hydrogen, produced from fossil fuels, yields up to 20 tons of carbon dioxide per ton of hydrogen, green hydrogen, produced from renewable energy sources like solar and wind, yields no emissions. Furthermore, although these colors all refer to the same molecule, production costs differ: green hydrogen remains substantially more costly today. With aggressive development and deployment of electrolyzers and other hydrogen technologies at scale, green hydrogen could become cost-competitive with blue hydrogen, produced from natural gas with carbon capture, by 2030 in many countries.[2] Overall, the rate at which green hydrogen costs decrease will also depend on government policies and incentives, such as carbon pricing and tax credits. Therein lies a critical challenge for the successful transition to a low-carbon economy. As energy systems increasingly evolve from centralized to decentralized, from “grey” to “green,” stakeholders will need to efficiently account for and track emissions and green molecules in a transparent, secure, and standardized way, and must be able to do so along value chains from production to consumption.
Topic:
Environment, Science and Technology, Natural Resources, Innovation, Renewable Energy, Hydrogen, and Energy
Political Geography:
Global Focus

235. The European Union at a Crossroads: Unlocking Renewable Hydrogen’s Potential

Author:
Nicola De Blasio and Alejandro Nuñez-Jimenez
Publication Date:
11-2021
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
European countries are at a crossroads on their path to carbon neutrality. Today, they are at the forefront of the global clean hydrogen race but going forward they would be better served by collaborating instead of working alone. Overall, the European Union (EU) is highly competitive in clean technologies manufacturing and thus well-positioned to benefit from the emergence of global hydrogen markets. But a narrow focus on short-term cost considerations could drive member states to implement national roadmaps with little or no coordination among themselves and hence little or no chance of competing globally. As a bloc, the EU has pledged to reach carbon neutrality by 2050. Clean hydrogen is a cornerstone of this transformational effort; accordingly, in July 2020, the EU adopted its hydrogen strategy with the ambition of deploying open and competitive clean hydrogen markets for all energy sectors and segments by 2050.1 Success hinges around implementing a cohesive long-term strategy to address a fundamental ques- tion and its associated challenges: where could the EU source competitive and secure renewable hydrogen supplies? As our previous research shows, all countries have access to renewable resources (such as solar or wind), to different degrees, and could produce some renewable hydrogen locally. However, while resource-rich countries, such as Spain, could evolve into regional exporters, no EU member state has the potential to become a global export champion. At the same time, North African countries, such as Morocco, are well-situated to act as key suppliers to the EU. Furthermore, imports from resource-rich regions like North America could help to address security of supply concerns.2 Today, EU hydrogen demand stands at 7.8 million tons per year (Mt/yr), equivalent to about 10% of global demand. Germany and the Netherlands are the largest consumers, accounting for over a third of EU demand, followed by Poland, Spain, Italy, Belgium, and France, which consume about 0.5 Mt/yr each.3 According to available projections, as hydrogen use grows across all economic sectors, EU hydrogen demand could reach 76 Mt/yr by 2050. But while the EU strategy sets clear targets on electrolyzer deployment by 2030, it provides very few details on how the bloc could meet demand—and at what cost—by 2050.
Topic:
Economics, Environment, Science and Technology, Natural Resources, European Union, Innovation, Hydrogen, and Energy
Political Geography:
Europe

236. Offshore Wind in the Eastern United States

Author:
Katie Segal and Henry Lee
Publication Date:
12-2021
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
In the last decade, many states set ambitious goals to decarbonize their energy portfolios. Seven states along the Atlantic coast are pursuing 100% clean electricity targets, while others have adopted stringent emissions reduction targets.1 Realizing these goals requires scaling wind, solar, and other renewable resource electricity generation at rates three to four times recent levels. If wind is to play a significant role in decarbonizing the electricity sector in the densely populated northeast section of the United States, a substantial proportion of the investment must occur offshore, as onshore wind speeds and available land area are limited. Some states have taken an additional step by establishing specific offshore wind targets. For example, New York's 2019 Climate Leadership and Community Protection Act contains a goal of 9,000 MW of offshore wind by 2035.2 This policy brief examines the economic and technical feasibility of substantial wind generation development along the Eastern Seaboard.
Topic:
Environment, Natural Resources, Renewable Energy, and Energy
Political Geography:
North America and United States of America

237. Mutual Concessions: Did al-Kadhimi’s visit to Tehran achieve its objectives?

Author:
FARAS
Publication Date:
09-2021
Content Type:
Policy Brief
Institution:
Future for Advanced Research and Studies (FARAS)
Abstract:
On September 12, 2021, Iraqi Prime Minister Mustafa al-Kadhimi, led a high-profile government delegation on an official one-day visit to Tehran that came upon invitation from Iranian President Ebrahim Raisi. Besides Raisi, al-Kadhimi also met Ali Shamkhani, the secretary of the Supreme National Security Council, and other senior officials.
Topic:
Security, Foreign Policy, Bilateral Relations, Domestic Politics, and Energy
Political Geography:
Iraq, Iran, and Middle East

238. Strengthening Regional Energy Governance in the Mekong Subregion

Author:
Chen-Sheng Hong
Publication Date:
07-2021
Content Type:
Special Report
Institution:
Pacific Forum
Abstract:
This paper explores the energy trilemma problems in the Mekong subregion and explains the necessity for regional energy governance. The current governmental cooperative mechanisms are an ineffective approach to regional energy governance in the Mekong subregion and should thus be strengthened. Countries of the Mekong subregion are facing the following energy trilemma: energy security, energy poverty, and environmental sustainability problems. This paper argues that regional energy governance is needed in the Mekong subregion because the energy trilemma has transboundary externalities on the Mekong ecosystem and requires regional cooperation to be managed effectively. Effective regional energy governance is based on three components: coordination,general norms, and consideration of the regional context. The existing mechanisms for governance in the subregion are lacking these elements. This paper concludes with three policy recommendations. First, it is necessary to enhance coordination among the subregional mechanisms. By exploring mutual benefits to raise incentives for cooperation and by seeking third-party engagement, more effective coordination may be realized. Also, information sharing may be a way to enhance the mechanisms’ transparency and improve coordination. Strengthened information sharing will enable other subregional mechanisms to understand the scale of the mechanisms’ proposed investments and their impact on the whole subregion, as well as provide potential opportunities for cooperation. Second, it is essential to develop norms and standards for the optimal management of natural resources for energy-related activities. Developing norms and standards may keep nations from choosing norms that benefit themselves but not the whole subregion. Finally, considering the context of the region is important, especially whether the actors share a largely homogeneous ecosystem. If actors in a geographical space share a largely homogeneous ecosystem, considering the negative impacts of transboundary externalities, they will be more willing to make compromises and cooperate to manage the energy trilemma. This paper assesses the engagement of the Association of Southeast Asian Nations (ASEAN) and indicates that the lack of sharing a largely homogeneous ecosystem between mainland Southeast Asia and maritime Southeast Asia has weakened ASEAN engagement in solving the energy trilemma in the Mekong subregion. However, ASEAN should still increase its participation in the Mekong subregion’s energy sector. This would complement its efforts to push forward regional power integration plans such as the “ASEAN Power Grid,” “ASEAN Economic Community Blueprint,” and “ASEAN Master Plan 2025.”
Topic:
Security, Poverty, Governance, Sustainability, and Energy
Political Geography:
China and Asia

239. Power to the People? Scrutinizing the U.S.-Arab Effort to Supply Energy to Lebanon via Syria

Author:
Katherine Bauer, Ben Fishman, Hanin Ghaddar, Simon Henderson, David Schenker, and Andrew J. Tabler
Publication Date:
12-2021
Content Type:
Special Report
Institution:
The Washington Institute for Near East Policy
Abstract:
Residents of the beleaguered country desperately need electricity, but a U.S.-Arab scheme carries complications that could benefit Syria's Assad regime. The Lebanese people have endured painful reductions in electricity over the last two years, and now the lights are on for just hours a day. To address this dire situation—and counter a Hezbollah initiative to import Iranian energy products to Lebanon—the United States and its Arab partners are pursuing a complex two-part scheme, with the first involving excess Jordanian electricity and the second, although not yet public, relying on natural gas originating in Egypt and Israel. But both components would involve energy transiting Syria and potentially benefiting the Assad regime, which is under heavy U.S. and international sanctions for its wartime abuses. In this timely Policy Note—richly illustrated with maps—former U.S. State Department senior advisor and NSC director Andrew J. Tabler and his Washington Institute coauthors disentangle the current U.S.-Arab proposal, including how it might interact with the anti-Assad sanctions regime. They also offer alternative avenues that avoid Syria altogether, such as using offshore LNG platforms and delivering to Lebanon sustainable energy systems, from solar panels to geothermal technology.
Topic:
Foreign Policy, Economics, Reform, Democracy, and Energy
Political Geography:
Middle East, Israel, Lebanon, Syria, Egypt, Jordan, and United States of America

240. Turning EU green energy diplomacy into reality

Author:
Louise Van Schaik, Akash Ramnath, and Giulia Cretti
Publication Date:
12-2021
Content Type:
Policy Brief
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
In Spring 2022, the European Commission will present its International Energy Engagement strategy, which will undoubtedly reflect that the European Green Deal nowadays tops the Brussels agenda. From being a traditional buyer of fossil fuels, the EU is adapting to become an exporter of green energy solutions and, to some degree, an importer of green energy. At a time when energy prices are historically high and EU climate policy is accelerating, this policy brief analyses what a more pro-active EU green energy diplomacy could look like. In light of this shift, a review is made of which instruments the EU could deploy to support green energy transitions and discourage third countries from continuing extraction and production of fossil fuels. It recommends the EU takes a firm stance on phasing out fossil fuel and enter dialogue with some of its current fossil fuel suppliers on the implications of its own transition. The EU will need to establish new partnerships on green energy provision, technology and critical raw materials needed for the transition.
Topic:
Diplomacy, Green Deal, European Commission, and Energy
Political Geography:
Europe