The role of MSMEs in fostering inclusive and equitable economic growth in the context of the clean energy transition in MENA

While the Middle East and North Africa (MENA) is experiencing significant impacts of climate change, countries also need to limit greenhouse gas emissions and improve efficiency in energy use and production. This project aims to contribute new knowledge to foster a clean energy transition that helps generate more and better employment opportunities for women and young people.

In the region’s economy, medium, small and micro enterprises (MSMEs) play a significant role and are responsible for the largest share in employment, but their potential for growth and employment creation tend to be hampered by regulation, access to capital and markets, etc. The project therefore focuses on these MSMEs, and through surveys will analyze how they adjust to the phase out of energy subsidies and the challenges in transitioning to renewable sources of energy.

The research will further assess existing policy frameworks and impediments to renewable energy adoption and expand the knowledge of sustainable behaviour at the enterprise level. It will also assess factors influencing the adoption of green energy and investments in energy efficiency. With this new evidence, the research institutions will inform stakeholders and public debates on clean energy, climate change and environmental justice, especially as it impacts the employment of women and youth.

The project will be implemented by the Economic Research Forum, in collaboration with the Lebanese Center for Policy Studies and the Middle East Institute. It will carry out policy-oriented case studies in Egypt, Jordan, Lebanon, Morocco, Sudan and Tunisia.