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AL – Diversifying national economies away from the fossil fuels industry in the light of the global energy transition

Home / AL – Diversifying national economies away from the fossil fuels industry in the light of the global energy transition

Introduction

Though the demand for fossil fuels is expected to keep rising at least for the near future, important markets such as western countries are slowly moving away towards more renewable sources of energy. The global energy transition is likely to present challenges to the Arab League members whose economies are largely dependent on the fossil fuel industry. These countries can keep their focus on the fossil fuel industry, gambling that other markets, such as China, will increase their demands enough to compensate for the decrease or even loss of Western markets, or they can try to diversify their economies to decrease their dependency on fossil fuels. Such a diversification can be hard for economies that have relied so heavily on a single sector for so long. A lot of structural challenges will have to be overcome, which can cause large scale economic damage and social unrest if not managed properly. The committee should discuss the future of the dependency on the fossil fuel industry and whether or not – and how – to diversify these economies. 

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