Fuel subsidy reform, decentralized electricity markets and renewable energy trade: evidence for a successful energy transition in the Middle East and North Africa Region.

This article examines the challenges and prospects of achieving a widespread energy transition in the Middle East and North Africa (MENA) region, emphasizing the need for economic, legal, and social reforms. It identifies fossil fuel subsidy removal, economic diversification, decentralization of energy markets—particularly through decentralized solar energy—and incentivized renewable energy trade as key strategies for decarbonizing MENA economies. The article highlights the United Arab Emirates (UAE) as a regional leader in energy transition due to its diversified economy and subsidy reforms, while presenting Jordan’s decentralized solar initiatives as a relevant model for other MENA countries. It further discusses the limitations of current international trade practices under the World Trade Organization (WTO) and proposes reforms to better align trade policies with climate mitigation goals, arguing that coordinated global efforts are essential for successful energy transitions in the region.