European investments in energy and agriculture in Egypt and Morocco have come under scrutiny by Greenpeace, who argue that these investments are extracting resources to the global north with little added value for the local economies. According to a new report by the campaign organization, these investments perpetuate a cycle of resource depletion, economic dependence, and environmental degradation in the host countries, while exacerbating climate impacts.
Hanen Keskes, campaigns lead at Greenpeace Middle East and North Africa (MENA), emphasized the need for a systemic shift in how global energy transitions are pursued. She stated that investments in renewable energy and green hydrogen in countries like Egypt and Morocco should prioritize local development, sustainability, and justice rather than perpetuating neocolonial dynamics. Keskes urged for a transition to a green economy that is transformative, inclusive, and centered on the needs of those most impacted.
The report highlighted the example of the European scramble for gas from African and Middle Eastern countries following the Russian invasion of Ukraine and the resulting energy crisis. European countries sought alternative sources of gas when Russia cut off pipelined gas supplies, exposing exporter countries to environmental and social costs.
Europe’s investments in Egypt, totaling approximately €38.8 billion in 2020, have increasingly focused on green hydrogen production for export back to European countries. Despite Egypt exporting fossil fuels to Europe, the country continues to face fuel shortages for domestic consumption, leading to energy blackouts and increased use of polluting fossil fuels domestically.
Similarly, European agribusiness investments in Morocco and Egypt prioritize export-oriented cash crops like tomatoes and citrus fruits, exacerbating water scarcity in the region. These extractivist industries also deepen gender inequalities by relegating women to low-wage, insecure roles and increasing unpaid care burdens.
The report recommended replacing current European energy investments with grassroots initiatives and community-centric renewable programs. It called for foreign companies investing in the global south to conduct comprehensive environmental and social impact assessments generated by the most affected countries and communities through participatory processes.
In a separate study published in Nature, researchers found that wealthy nations are effectively outsourcing deforestation through their demand for products like beef, palm oil, timber, and soya beans. These commodities are typically grown in countries with tropical forests, leading to significant forest habitat destruction outside the rich countries’ borders.
Countries with the most substantial impacts abroad included the US, Germany, France, Japan, China, and the UK. The research highlighted the interconnectedness of global supply chains and the responsibility of wealthy nations in driving environmental degradation in other parts of the world.
Catherine Early, a freelance environmental journalist and chief reporter for The Ecologist, provided insights into the neocolonial dynamics of European investments in energy and agriculture in Egypt and Morocco. Her expertise sheds light on the urgent need for sustainable and just economic transitions in these regions.
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