Gulf Economic Update SPRING 2022 : Achieving Climate Change Pledges

The Gulf Cooperation Council (GCC) countries were characterized by a robust economic rebound from the pandemic in 2021 and the beginning of 2022 as well as a partial restoration of external and fiscal positions following deep plunges in 2020. The w...

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Main Author: World Bank
Format: Bief
Language:English
Published: Washington, DC 2022
Subjects:
Online Access:http://documents.worldbank.org/curated/en/099311005162231016/IDU0d2c7c1730fbdd04b560bdd5013e6eeea66ca
http://hdl.handle.net/10986/37472
id okr-10986-37472
recordtype oai_dc
spelling okr-10986-374722022-05-24T05:10:46Z Gulf Economic Update SPRING 2022 : Achieving Climate Change Pledges World Bank CLIMATE CHANGE PLEDGES GULF COOPERATION COUNCIL (GCC) ECONOMIC DEVELOPMENTS IN MENA REGIONAL ECONOMIC RISKS AND OUTLOOK CARBON CIRCULAR ECONOMY CLIMATE MITIGATION WAR IN UKRAIN WINDFALL ENERGY SUBSIDIES OIL ECONOMY HYDROCARBON SECTOR HYDROCARBON EXPORTS TOP CO2 EMITTERS The Gulf Cooperation Council (GCC) countries were characterized by a robust economic rebound from the pandemic in 2021 and the beginning of 2022 as well as a partial restoration of external and fiscal positions following deep plunges in 2020. The war in Ukraine is projected to provide a windfall for the GCC; it has also placed energy security at the forefront of major importers’ agenda, which could accelerate the global green growth transition. The faster and bolder efforts to decarbonize the global economy, which the war in Ukraine is likely to speed up, implies that it is critical to invest the windfall in the GCC’s economic and environment transition. GCC countries are facing limits to the oil economy on which they have flourished for the last seventy years. GCC countries face twin challenges of (i) how to move to a more sustainable growth model that is less dependent on oil and downstream petroleum sectors and that can provide valuable jobs for their inhabitants while (ii) managing the transition to a global low-carbon economic environment that could see oil revenues greatly reduced within the next few decades. The current situation has sometimes been portrayed as a threat to the GCC or at the very least as a trade-off between faster growth and climate sustainability. However, this special focus section reframes the discussion by focusing on the opportunities for the region to restructure energy subsidies. to become renewable-energy powerhouses, and the importance of getting prices right for an enabling environment that can place the private sector at the forefront of the new growth model. The section also highlights the fiscal space that can be created by re-thinking energy subsidies and provides a political economy sensitive approach to addressing the concerns of households and industry. Linking the expected savings to investments in renewables and incentives for increased entrepreneurship and innovative sectors could represent a solution to one of the GCC’s greatest challenges, producing high income jobs for its youth. 2022-05-23T23:22:38Z 2022-05-23T23:22:38Z 2022 Bief http://documents.worldbank.org/curated/en/099311005162231016/IDU0d2c7c1730fbdd04b560bdd5013e6eeea66ca http://hdl.handle.net/10986/37472 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC Report Middle East and North Africa
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic CLIMATE CHANGE PLEDGES
GULF COOPERATION COUNCIL (GCC)
ECONOMIC DEVELOPMENTS IN MENA
REGIONAL ECONOMIC RISKS AND OUTLOOK
CARBON CIRCULAR ECONOMY
CLIMATE MITIGATION
WAR IN UKRAIN WINDFALL
ENERGY SUBSIDIES
OIL ECONOMY
HYDROCARBON SECTOR
HYDROCARBON EXPORTS
TOP CO2 EMITTERS
spellingShingle CLIMATE CHANGE PLEDGES
GULF COOPERATION COUNCIL (GCC)
ECONOMIC DEVELOPMENTS IN MENA
REGIONAL ECONOMIC RISKS AND OUTLOOK
CARBON CIRCULAR ECONOMY
CLIMATE MITIGATION
WAR IN UKRAIN WINDFALL
ENERGY SUBSIDIES
OIL ECONOMY
HYDROCARBON SECTOR
HYDROCARBON EXPORTS
TOP CO2 EMITTERS
World Bank
Gulf Economic Update SPRING 2022 : Achieving Climate Change Pledges
geographic_facet Middle East and North Africa
description The Gulf Cooperation Council (GCC) countries were characterized by a robust economic rebound from the pandemic in 2021 and the beginning of 2022 as well as a partial restoration of external and fiscal positions following deep plunges in 2020. The war in Ukraine is projected to provide a windfall for the GCC; it has also placed energy security at the forefront of major importers’ agenda, which could accelerate the global green growth transition. The faster and bolder efforts to decarbonize the global economy, which the war in Ukraine is likely to speed up, implies that it is critical to invest the windfall in the GCC’s economic and environment transition. GCC countries are facing limits to the oil economy on which they have flourished for the last seventy years. GCC countries face twin challenges of (i) how to move to a more sustainable growth model that is less dependent on oil and downstream petroleum sectors and that can provide valuable jobs for their inhabitants while (ii) managing the transition to a global low-carbon economic environment that could see oil revenues greatly reduced within the next few decades. The current situation has sometimes been portrayed as a threat to the GCC or at the very least as a trade-off between faster growth and climate sustainability. However, this special focus section reframes the discussion by focusing on the opportunities for the region to restructure energy subsidies. to become renewable-energy powerhouses, and the importance of getting prices right for an enabling environment that can place the private sector at the forefront of the new growth model. The section also highlights the fiscal space that can be created by re-thinking energy subsidies and provides a political economy sensitive approach to addressing the concerns of households and industry. Linking the expected savings to investments in renewables and incentives for increased entrepreneurship and innovative sectors could represent a solution to one of the GCC’s greatest challenges, producing high income jobs for its youth.
format Bief
author World Bank
author_facet World Bank
author_sort World Bank
title Gulf Economic Update SPRING 2022 : Achieving Climate Change Pledges
title_short Gulf Economic Update SPRING 2022 : Achieving Climate Change Pledges
title_full Gulf Economic Update SPRING 2022 : Achieving Climate Change Pledges
title_fullStr Gulf Economic Update SPRING 2022 : Achieving Climate Change Pledges
title_full_unstemmed Gulf Economic Update SPRING 2022 : Achieving Climate Change Pledges
title_sort gulf economic update spring 2022 : achieving climate change pledges
publisher Washington, DC
publishDate 2022
url http://documents.worldbank.org/curated/en/099311005162231016/IDU0d2c7c1730fbdd04b560bdd5013e6eeea66ca
http://hdl.handle.net/10986/37472
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