Navigating Net-Zero Transitions in the Middle East and North Africa Region: Climate Imperatives, Economic Risks, and Strategic Opportunities

Global efforts to achieve net-zero greenhouse gas emissions are gaining momentum, yet progress varies widely across regions. While advanced economies have achieved notable strides in renewable deployment, sustainable finance, and climate governance, the Middle East and North Africa (MENA) region continues to face structural barriers that complicate its decarbonization trajectory. This edited book integrates global best practices and recent empirical evidence with region-specific insights to critically assess the conditions under which sustainability initiatives can yield transformative outcomes in the MENA region. Drawing on evidence from foreign direct investment, particularly investments associated with the Belt and Road Initiative spearheaded by China, some analyses highlight both opportunities and risks associated with external capital flows. Empirical chapters further examine financial market mechanisms, emphasizing how rising environmental costs, greenflation, and climate-related credit risks influence financial stability and investment dynamics. At the institutional level, board-level incentives are considered as emerging governance tools to embed sustainability into corporate decision-making, albeit with ethical and transparency concerns. The edited book further assesses the role of sustainable finance instruments, such as green bonds and blended finance, in mobilizing capital, emphasizing the need for robust environmental, social, and governance (ESG) disclosure and institutional capacity. Finally, it critiques the fragmented policy frameworks across MENA, contrasting them with binding climate legislation in advanced economies, and argues for integrated governance models to overcome siloed approaches. Collectively, the findings position MENA at a critical crossroads: the region must bridge governance gaps, align financial and policy frameworks, and adopt inclusive strategies to transform its renewable potential into credible net-zero pathways.