Financing the transition to climate neutrality in the Mediterranean: Who, how, where and when

Day: 15/11/2022
Time: 16:15 -
 17:15 (Egypt local time, CET+1)
Place: Mediterranean Pavilion
Organised by: Observatoire Méditerranéen de l'Energie - OME; European Investmen Bank - EIB

Rationale Although Mediterranean countries contribute moderately to global greenhouse gas emissions (about 6% in 2019) the region is a climate change hotspot, as highlighted by several IPCC reports. GHG emissions in the Mediterranean have quadrupled in the last 60 years. Behind this evolution, however, there are contrasted trends across the region. In the northern shore emissions reached their peak in the early 2000s to then decrease substantially. The picture in the South Mediterranean region is of a strong growth and current levels of emissions equal those in the northern shore. A drastic move towards carbon neutrality patterns is urgently needed. The energy sector plays a relevant role in the transition towards sustainable development, as it is responsible for 74% of total GHG emissions in the Mediterranean. Overall, GHG emissions from the energy sector have grown by 29% since 1990 to reach 2 billion tonnes in 2019, and are projected to rise to 2.5 billion tonnes by 2050 in a business-as-usual scenario of which 1.8 billion would stem from the South Mediterranean alone. Conversely, the implementation of a “Net Zero Carbon Scenario” to the horizon 2050 would allow drastically reducing the emissions below 270 billion tonnes for the whole region, while at the same time bringing a series of benefits in terms of energy security, job creation, improvement of health conditions and several other collateral positive side-effects. The OME estimates in terms of financing needs to foster energy transition indicate that some 230 billion Euros over the period to 2050 will need to flow to energy efficiency measures and low-carbon technologies, primarily renewable energy technologies. Substantial public and private investments will therefore be necessary to successfully achieve the energy transition. This does not mean however to mobilize entirely new resources. Part of the investments to be made – around 60% – corresponds in fact to investments that would have taken place anyway, for example to build and renew housing. It is therefore a question of a net increase in funding as much as a question of reallocation of funding, currently unfavorable to carbon neutrality, towards favorable investments. The role of financing institutions in support to public and private investments is therefore key. The aim of this event is to bring together international financing institutions, policy makers and industry operators to discuss how to finance the energy transition in the Mediterranean by addressing the following issues: Who, how, where and when.

Programme Opening

Mr. Grammenos Mastrojeni, Senior Deputy Secretary General, UfM Secretariat

Assessing the financing needs of the Net Zero Carbon: key take-away messages from the MEP 2050 scenarios

Dr. Houda Ben Jannet, General Director, OME

How to finance the net zero carbon in the Mediterranean

Moderator: Dr. Kamel Benaceur, CEO Nomadia Energy

Discussants: ·      

Mrs. Eefje Schmid, Head of Policy and Impact Unit, Strategy & Partnerships Department, EIB GLOBAL

Dr. Eng. Mohamed Mostafa El-Khayat, Executive Chairman, NREA, Egypt

Mr. Matteo Restelli, Gas & LNG Infrastructure Development Director Edison, Chairman OME financing Committee

Mr. Vincent CHAUVET, Member of the European Committee of the Regions, Mayor of Autun, France

Dr. Edoardo Dellarole, Chairman Programme Committee OMC MED Energy Conference, Italy

Q&A session

Conclusions        Mr. Lapo Pistelli, Chairman OME