In this interview given to Walid Dalli from France24 Arabic, Dr. Carole Nakhle, CEO of Crystol Energy, discusses the implications of the Gaza war on the Palestinian and Israeli economies and the link between climate and economic policies in the European Union.
Key takeaways on the war in Gaza:
– Even after the discovery of giant gas fields in its offshore waters in 2009-10, it took Israel more than ten years to attract big energy companies. However, the war in Gaza reminded investors of the high political and security risks that will always be a key feature of the region under the status quo.
– Both Israel and Gaza have incurred significant economic costs. However, given the massive and extensive destruction that we are witnessing in Gaza, it would take years if not decades for the Palestinian economy to go back to its prewar level.
– Gaza can one day capitalise on the long discovered offshore field – Gaza Marine – but that requires a sustainable political and peaceful resolution.
Key takeaways on the EU’s climate policies:
– The EU is the most progressive region when it comes to climate change policies.
– The more the EU pushes forward towards implementing these policies, the bigger the impact will be felt on various sectors of the economy and in some sectors backlash and resistance are inevitable, especially when those policies come at a higher cost for businesses and households.
– The US, China and the EU have provided significant incentives to green investment. While this results in competition between those three players, the countries that will suffer the most are the lower income countries which lack the funding to compete for investment at that level.
– Through the Carbon Border Adjustment Mechanism (CBAM), the EU is imposing a tariff on carbon intensive goods such as cement and steel from non-EU suppliers. While the measure is meant to promote ‘cleaner imports’, it also provides some protection from import competition to the domestic industry.
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