Greenpeace Calls Out EU for Exploiting MENA’s Renewable Energy

Greenpeace warns European-backed renewable energy projects in MENA regions exploit resources, harm local economies, and reinforce neocolonialism
 

North Africa and the Middle East sit at a crossroads. These regions hold great promise for renewable energy. Vast deserts, abundant sunshine, and strong winds make them ideal for solar and wind power. Yet, new projects risk repeating old patterns of exploitation.

A recent Greenpeace report warns that European-backed projects may harm local economies. The report shows how renewable energy projects in Morocco and Egypt serve export markets rather than local needs. This situation raises serious questions about fairness, sustainability, and the future of energy in these regions.

Today’s challenges lie deep in history. Colonial powers extracted resources from the Global South. They then sent wealth and energy to fuel industrial growth in the Global North. Today, similar patterns exist. Global institutions and wealthy nations continue to shape energy policies in the MENA region. These decisions often favour export-oriented projects. So, the legacy of colonial exploitation still influences the management and use of resources.

European investments in renewable energy come with strings attached. The focus is on meeting European energy demands rather than supporting local communities. This modern form of exploitation is known as green colonialism. It sees natural resources and renewable energy projects as a means to serve external markets. Often, local needs are not a priority. So, North Africa’s renewable energy potential becomes a tool for foreign benefit, rather than a path to sustainable local development.

The Exploitative Practice of Green Colonialism

Green colonialism is a modern take on old colonial methods. It disguises the exploitation of resources as a commitment to sustainability. For example, renewable energy projects in Morocco and Egypt often send green energy to Europe. Instead of improving local economies, these projects create "sacrifice zones". In these zones, the local communities suffer environmental damage and social disruption. Key resources like water and land are diverted to serve export markets. This leaves local populations with fewer benefits and more risks.

European investments focus on green hydrogen and renewable energy projects. These projects claim to be sustainable. However, they often come at a steep cost to local communities. The extraction of resources creates environmental problems. It also deepens economic dependency on foreign capital. As a result, local governments struggle to invest in projects that truly benefit their people.

Renewable Energy Projects in Morocco

There's huge potential for renewable energy in Morocco. With plenty of sunlight and wind, it's an ideal country for solar and wind power. But its green energy projects are troubling. Take, for example, Morocco's green hydrogen projects, which are largely export-led, taking up enormous amounts of land. In fact, a million hectares have been set aside to produce green hydrogen for Europe.

These projects are not without costs. They use precious water resources. Greenpeace highlights the extent of this, projecting Morocco’s planned green hydrogen output will need 92 million cubic meters of water. In a country already facing high water stress, this demand worsens the pressure on the environment and locals. Plans to build desalination plants to supply water raise extra concerns too. Desalination is energy-intensive and can damage marine ecosystems through the discharge of brine.

Despite massive investments in renewable energy, Morocco remains dependent on imported fossil fuels. The country imports oil and gas and exports renewable energy to power its national economy. This paradox highlights the limits of current policies. Instead of creating local energy security, Greenpeace makes it clear how export-driven projects could lock Morocco into an extractivist model that serves foreign interests.

Renewable Energy Projects in Egypt

Egypt faces similar challenges. On the positive side, Egypt has the potential to become a global clean energy hub. On the negative side, the current model worsens economic dependence and ecological degradation. This is all because the country has invested in renewable energy yet its projects often serve external markets. European companies have poured billions into Egypt to access its gas reserves. After the Ukraine-Russia conflict disrupted gas supplies, these investments grew even larger. But, local communities are not benefiting from them.

Extractive practices continue harming Egypt's environment. Soil erosion and water contamination have resulted from over-drilling by oil and gas firms. In other cases, locals experience regular power outages. One of the major oil companies, Eni, has prioritised exports over domestic energy security. Despite increasing domestic use of dirty fuels like mazut, Egypt still exports gas to Europe. This dynamic creates a double burden. Local populations face energy insecurity and environmental damage, while wealth flows out of the country.

European Investments and the Renewable Energy Paradox

European nations have turned to North Africa and the Middle East as partners in their green energy transition. They invest heavily in projects that promise clean energy. Yet, these investments often reinforce old power structures. The European Union’s push for green hydrogen is a prime example. By funding green hydrogen projects, the EU meet its own energy needs while externalising environmental costs.

In Morocco, for instance, TotalEnergies has invested over $10 billion in a green hydrogen and ammonia plant. Germany has also spent hundreds of millions of euros on green hydrogen facilities. Both investments target export markets. They aim to serve Europe’s energy needs rather than improving local energy access. This pattern shows how renewable energy investments can deepen neocolonial dynamics.

Greenpeace’s report highlights this issue. It argues that European-backed projects, under the banner of sustainability, often do more harm than good for local communities. They delay the development of local renewable energy infrastructure. The energy produced is mainly exported, leaving the region reliant on imported fossil fuels. This creates a cycle of dependency that restricts true decarbonisation and local development.

Environmental and Social Costs

The environmental and social costs of these projects are high. Extractivist methods ruin ecosystems and deplete critical resources. Water, one of the most precious resources in these arid regions, is often diverted from local use. In Morocco, the demand for water in green hydrogen production increases stress on an already scarce supply. This creates tensions between local needs and export demands.

Local communities experience the impact of these costs. Areas reserved for large-scale energy production become sacrifice zones. These regions suffer from soil degradation, water contamination, and loss of biodiversity. In Egypt, over-drilling has led to severe environmental damage. So, local communities face the threat of contaminated water and unstable land. The social impacts are equally severe. Displacement, poor working conditions, and limited access to essential services plague many rural and marginalized areas.

Economic benefits rarely impact local communities. Instead, they flow to foreign investors and multinational corporations. Local communities receive minimal compensation for the environmental damage they experience. This deepens economic inequality and undermines sustainability over the long term. The dependence on export markets puts these countries into a cycle of dependency and exploitation.

Green Hydrogen's Neocolonial Dynamics

The European Union's desire for green hydrogen with the likes of the European Hydrogen Strategy presents new difficulties. Green hydrogen initiatives need a lot of land and water. So, their agendas frequently put European markets ahead of regional demands. This strategy upholds neocolonial power structures. Natural resources in nations like Morocco and Egypt are being exploited for the advantage of international markets. We see this even in subtle ways with the likes of the European Bank for Reconstruction and Development (EBRD). For example, the ERBD have assisted the Egyptian and Moroccan governments with studies for developing green hydrogen. 

European investments in green hydrogen highlight the unequal power dynamics at play. The Global North uses North Africa’s renewable energy potential to greenwash its own economies. Meanwhile, local communities suffer from environmental degradation and resource depletion. This shift of environmental burdens creates a clear divide. The benefits of clean energy remain concentrated in Europe, while the Global South faces the costs.

These projects illustrate the paradox of green energy in the region. While the promise of renewable energy is real, its implementation can deepen old patterns of inequality. According to Greenpeace, the EU’s green hydrogen initiatives demonstrate that renewable energy projects can replicate the extractivist practices of the past. Instead of fostering genuine local development, they may serve as a new form of resource exploitation.

Economic Dependency and Debt Challenges

Many countries in North Africa and the Middle East struggle with economic dependency and heavy debt burdens. Structural adjustment plans and neoliberal policies have forced nations like Egypt and Morocco to concentrate on raw material exports. This leaves them exposed to global market fluctuations. When trapped in a cycle of debt repayment and austerity measures like this, investing in sustainable local development a major challenge for these countries.

Foreign investments often come with conditions. These can bind countries to decades of reliance on foreign capital. In Morocco, export contracts for renewable energy projects benefit European investors. In Egypt, the prioritization of gas exports restricts efforts at building a strong domestic energy sector. This relationship prevents these countries from balanced and sustainable development.

The dependence on debt and external funding further complicates transitioning to renewable energy. Countries receive false solutions, such as debt swaps, in place of support for local decarbonisation. These measures don't address the fundamental structural problems. They only serve to maintain the current disparities in resources and power.

Policy Recommendations for a Fair Transition

Experts suggest several policy changes to break the cycle of neocolonial exploitation. 

At the national level, they recommend that governments:

1. Incentivize sustainable practices and local food security. Enhancing this will involve renewable energy subsidies and supporting sustainable agriculture.
2. Establishing Community Land Trusts (CLTs) to help local people manage their resources. A core part of this will centre around promoting community ownership and participatory governance.
3. Enhance transparency and accountability. Regulatory frameworks, public disclosure laws, and independent oversight will help make this possible. They can ensure that investments benefit local communities. 
4. Adopt traditional governance models like Majlis and cooperatives. This helps align economic models with local traditions and values.

At the international level, they recommend:

1. Reforming global financial architecture. This can help create a fair transition through cancelling unfair debt, but also through stopping fossil fuel funding and using progressive taxation that relieves the pressure.
2. Reforming trade and loan agreements. This is essential to remove neocolonial frameworks like unfair trade agreements and austerity measures.
3. Ending neocolonial and extractivist practices. By doing so we help support local sufficiency.
4. Creating a just transition to renewable energy. Doing so will involve escalating energy efficiency initiatives with fair funding.
5. Establishing a UN Framework Convention on International Tax Cooperation. This would promote fair tax standards. 
6. Ensuring community governance of foreign investments in the Global South. They suggest implementing this through comprehensive Environmental and Social Impact Assessments (ESIAs).

All these measures would help break the extractivist dependencies that currently limit sustainable development.

Gender Justice in Resource Governance

Women often have low-paying, insecure roles in extractivist models. This increases unpaid care work and deepens social vulnerabilities. But, policies are often more environmentally friendly with the inclusion of women in the decision-making process. So, when it comes to the management of natural resources, gender fairness is crucial. Inclusive governance will open up opportunities for sustainable practices and improved public services.

Policies that promote gender equality can transform resource management. Recognizing women as key energy producers, rather than just consumers, is critical. Effective resource governance requires the meaningful participation of women and gender-diverse individuals. Feminist economic approaches challenge traditional growth models. They place a strong emphasis on social provisioning, fair resource allocation, and acknowledging unseen effort.

In regions like North Africa and the Middle East, promoting gender justice can lead to more inclusive and sustainable development. It can break down long-standing gender barriers and ensure equal sharing of the benefits of renewable energy.

Learning from Buen Vivir

The concept of Buen Vivir presents a viable substitute for existing methods. Buen Vivir, which has its roots in South America, translates to "good living" or "living well." Even the constitutions of Bolivia and Ecuador include it. This concept prioritises communal well-being and harmony with the environment over unrelenting economic progress.
Buen Vivir questions the traditional emphasis on profit and extraction. It encourages respect for traditional wisdom, ecological balance, and communal harmony. This strategy moves the focus from immediate profits to long-term sustainability. It provides a road map for nations looking to create universally beneficial economies.

Adopting Buen Vivir could help North Africa’s and the Middle East's renewable energy sectors break free from neocolonial practices. By valuing ecological health and social well-being, these regions can develop renewable energy projects that serve local needs. This model calls for a rethinking of resource management. It will require considering the environmental and social costs in every decision.

The Importance of Local Governance in Sustainability

Strong local governance is key to reversing neocolonial trends. Local communities know their needs best. They can decide how to use natural resources in ways that support long-term well-being. Policies that empower local voices can break the cycle of dependency on foreign capital.

Community-driven initiatives can build local capacity. Training programs in legal and financial literacy can help residents take charge of resource management. Participatory procedures at the local level guarantee that investments reflect community values. By using this strategy, economies can become more robust and less susceptible to outside shocks.

Local governance also supports environmental stewardship. Communities are more inclined to protect the land and water when they have authority over their resources. This leads to better outcomes for both people and nature. In addition to being fair, empowering local voices is crucial for sustainable development.

Neocolonial Dynamics in the EU’s Green Hydrogen Push

The European push for green hydrogen adds another layer to these challenges. Green hydrogen projects in North Africa and the Middle East often serve European markets. They use local resources to meet external demand. This strategy deepens old patterns of exploitation.

The EU’s approach shows a clear imbalance. Investments target high-value projects that support European energy diversification. They shift the environmental costs to countries like Morocco and Egypt. These projects drain water and land resources that could support local communities. They also reinforce the idea that renewable energy is a commodity for export, rather than a public good.

Greenpeace’s report emphasizes these points. It states that European-backed renewable energy projects restrict the ability of Morocco and Egypt to decarbonise their own economies. The report argues that these projects leave North Africans with dirty imported fuels while supplying clean energy to Europe. Such practices risk creating a future that sacrifices the needs of locals for external profit.

The Future of Renewable Energy in the MENA Region

Though complicated, the future of the Middle East and North Africa is promising. These areas can create a sustainable energy future by using their wealth of natural resources. However, local needs, not foreign interests, must define this future.

Policy reforms need to end the cycle of neocolonial exploitation to proceed. Increasing local energy security should be the main goal of investments. Prioritising home demand and constructing strong local infrastructure are essential for renewable initiatives. At the same time, international partnerships must shift away from extractivist models. Fairtrade agreements and just financial mechanisms are necessary to support local development.

A fair and sustainable energy transition will also require the integration of alternative models like Buen Vivir. Embracing local knowledge and community values can guide new approaches to resource management. Such a shift would mark a departure from traditional growth-centric models. It would help build resilient economies that support both people and the environment.

International cooperation must also address issues of debt and economic dependency. Cancelling unfair debts and reforming trade agreements can free up resources for local investment. With proper safeguards, climate finance can support truly sustainable projects. These measures would help ensure that renewable energy investments benefit local communities rather than deepening external dependencies.

Bringing It All Together

The struggle over renewable energy in North Africa and the Middle East is not just about technology or investment. It is a contest over the future of these regions. On one side are models that repeat centuries-old patterns of exploitation. On the other are new approaches that promise genuine local empowerment and sustainability.

Greenpeace’s report sheds light on this critical issue. It shows how European-backed projects often externalize environmental and social costs, prioritising exports over local needs. As a result, local communities remain burdened with environmental degradation, water scarcity, and economic dependency.

Both Morocco and Egypt serve as key examples of these dynamics. In Morocco, green hydrogen projects use vast amounts of land and water. In Egypt, over-drilling and export-focused gas projects leave local populations with power shortages and environmental harm. In both cases, renewable energy could build local resilience instead fuel external consumption. Breaking this cycle requires bold policy reforms, robust local governance, and community-led resource management. 

The future of renewable energy in these regions hinges on the ability to shift priorities. Local communities must lead decisions about their resources. Only then can the promise of clean energy be fully realized for both people and the planet.

A Fairer Renewable Energy Future for the MENA Region

Greenpeace warns that without change, renewable energy projects may reinforce neocolonial exploitation. Yet, they also highlight a transformative path forward. By empowering local communities, there's an attractive future that frames energy as a public benefit instead of an exportable commodity. Gender equality, and adopting sustainable models such as Buen Vivir, can play an important role here.

True local success is possible in North Africa and the Middle East by utilising their renewable energy potential for their own benefit. This is all possible through trade agreement reform, debt cancellation, and the establishment of transparent, community-led governance. Today's choices will shape these regions for generations.
 

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