Energy Transition in the GCC: From Oil Giants to Green Leaders?

During the 28th Conference of the Parties (COP28), organized under the United Nations Framework Convention on Climate Change and hosted by the United Arab Emirates, member nations reached a global agreement to begin transitioning away from fossil fuel dependence, forcing the Gulf Cooperation Council...

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Main Authors: Jihen Bousrih, Manal Elhaj
Format: Article
Language:English
Published: MDPI AG 2025-07-01
Series:Energies
Subjects:
Online Access:https://www.mdpi.com/1996-1073/18/13/3460
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author Jihen Bousrih
Manal Elhaj
author_facet Jihen Bousrih
Manal Elhaj
author_sort Jihen Bousrih
collection DOAJ
description During the 28th Conference of the Parties (COP28), organized under the United Nations Framework Convention on Climate Change and hosted by the United Arab Emirates, member nations reached a global agreement to begin transitioning away from fossil fuel dependence, forcing the Gulf Cooperation Council (GCC) countries to balance their commitment to a green transition with the need to secure short-term energy supplies. This study highlights the challenges facing the GCC’s efforts to expand renewable energy, even as the region continues to have a significant influence over international energy markets. This study utilizes dynamic panel estimation over the period 2003 to 2022, focusing on the core pillars of the Energy Transition Index to analyze the evolving renewable energy use in the GCC. The results present a clear and optimistic perspective on the region’s renewable energy prospects. Despite the continued dependence on fossil fuels, the findings indicate that, if effectively managed, oil and gas revenues can serve as strategic instruments to support the transition toward cleaner energy sources. These insights offer policymakers robust guidance for long-term energy planning and highlight the critical importance of international collaboration in advancing the GCC’s sustainable energy transition.
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spelling doaj-art-c06e3ccf40274bd8b03cb696c8cc58b02025-08-20T03:50:16ZengMDPI AGEnergies1996-10732025-07-011813346010.3390/en18133460Energy Transition in the GCC: From Oil Giants to Green Leaders?Jihen Bousrih0Manal Elhaj1Department of Economics, College of Business Administration, Princess Nourah bint Abdulrahman University, P.O. Box 84428, Riyadh 11671, Saudi ArabiaDepartment of Economics, College of Business Administration, Princess Nourah bint Abdulrahman University, P.O. Box 84428, Riyadh 11671, Saudi ArabiaDuring the 28th Conference of the Parties (COP28), organized under the United Nations Framework Convention on Climate Change and hosted by the United Arab Emirates, member nations reached a global agreement to begin transitioning away from fossil fuel dependence, forcing the Gulf Cooperation Council (GCC) countries to balance their commitment to a green transition with the need to secure short-term energy supplies. This study highlights the challenges facing the GCC’s efforts to expand renewable energy, even as the region continues to have a significant influence over international energy markets. This study utilizes dynamic panel estimation over the period 2003 to 2022, focusing on the core pillars of the Energy Transition Index to analyze the evolving renewable energy use in the GCC. The results present a clear and optimistic perspective on the region’s renewable energy prospects. Despite the continued dependence on fossil fuels, the findings indicate that, if effectively managed, oil and gas revenues can serve as strategic instruments to support the transition toward cleaner energy sources. These insights offer policymakers robust guidance for long-term energy planning and highlight the critical importance of international collaboration in advancing the GCC’s sustainable energy transition.https://www.mdpi.com/1996-1073/18/13/3460energy transition indexGCCrenewable energy transitionsustainable development goalspanel fixedrandom effects
spellingShingle Jihen Bousrih
Manal Elhaj
Energy Transition in the GCC: From Oil Giants to Green Leaders?
Energies
energy transition index
GCC
renewable energy transition
sustainable development goals
panel fixed
random effects
title Energy Transition in the GCC: From Oil Giants to Green Leaders?
title_full Energy Transition in the GCC: From Oil Giants to Green Leaders?
title_fullStr Energy Transition in the GCC: From Oil Giants to Green Leaders?
title_full_unstemmed Energy Transition in the GCC: From Oil Giants to Green Leaders?
title_short Energy Transition in the GCC: From Oil Giants to Green Leaders?
title_sort energy transition in the gcc from oil giants to green leaders
topic energy transition index
GCC
renewable energy transition
sustainable development goals
panel fixed
random effects
url https://www.mdpi.com/1996-1073/18/13/3460
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