Discussion
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Together with the KAS Regional Office Gulf States, KAS-REMENA organized the "Europe-GCC Energy Dialogue" with a delegation of energy experts from GCC countries in Berlin and Brussels from 24-29 September 2023.
The "Europe-GCC Energy Dialogue" was conceived against the backdrop of significant global shifts in the energy landscape, triggered in part by the Ukraine conflict. These shifts have elevated issues of energy security to the forefront of the European agenda. Simultaneously, the world is grappling with the ever more visible impacts of climate change, prioritizing calls for an expedited transition to cleaner energy sources.
For the Gulf Cooperation Council (GCC) countries, their excellent conditions for renewable energy generation paired with abundant energy expertise, and existing energy ties with many countries presents an opening. It allows them to venture into economic diversification and embrace the energy transition. For Europe, a deeper energy partnership with the GCC holds considerable potential for bolstering energy security and advancing its decarbonization ambitions.
Against this backdrop, the dialogue program provided a unique platform for a selected group of energy experts from the GCC to engage in discussions with prominent German and European counterparts. These discussions explored the latest developments related to energy security transition. The program facilitated in-depth conversations with German and European policymakers, government ministries, experts from think tanks and academia, and private sector representatives.
By bringing these stakeholders together, the dialogue program contributed to fostering mutual understanding regarding priorities, strategic directions, and avenues for enhanced energy collaboration between the GCC and Europe. The focus lay on the potential for intensified energy cooperation and the creation of deeper synergies in the energy sector to address the evolving challenges and opportunities in the global energy landscape.
Discussions in the framework of the dialogue program revealed that:
- There is considerable momentum and interest for an intensified energy cooperation. Strategic priorities regarding energy sources, technologies (such as CCUS and DAC) and respective timelines, however, differ. A better understanding of decision-making systems as well as underlying political considerations on both sides is crucial for future energy cooperation.
- Steps towards each other, especially to find pragmatic solutions and synergies, are necessary to deliver on potentials for cooperation, e.g. the question of renewable vs. low-carbon hydrogen stipulations for the European market.
- In order to incentivize the necessary investments for the scale-up of the hydrogen economy, it needs clear demand indications and offtake agreements from consumer countries/industries. Otherwise, Europe risks falling behind other, particularly Asian, markets.
- Regulations and certifications remain a crucial factor to enable the envisaged hydrogen trade between Europe and GCC, but also beyond, and to enhance visibility and transparency for all involved actors.
