Sharaka Research Paper nr.3
Energy remains central to GCC-EU relations: in fact, fossil fuels remain the most traded product, due to the proximity of the regions and the complementarity of their energy production and consumption patterns. Having a third of the world’s oil reserves, GCC countries have paid little attention to their domestic energy consumption. However, the rising cost of electricity production and the relative shortage in gas production are changing the governments’ strategies: they recognize the importance of diversifying local energy supplies, and are moving towards market reform and a sustainable energy mix. They are actively working on expanding existing production capacities in order to meet current and future electricity and water demands. Renewable energy and energy efficiency present excellent opportunities for GCC-EU cooperation and partnership. This report aims to identify areas of potential cooperation in the fields of energy, the environment and climate change. It is based on analysis of primary and secondary data emerging from the contributions and knowledge of EU/GCC stakeholders.