Following criticism of the Lebanon-Cyprus Maritime Boundary Agreement (MBA) by the governments of Israel and Turkiye, LebTalks spoke with energy and policy expert Roudi Baroudi, who has authored several books and studies on sea borders in the Eastern Mediterranean. Baroudi praised the pact as “full of positives” for the interests of both parties and stressed the words of Lebanese President Joseph Aoun, who pledged after signing the MBA that “this agreement targets no one and excludes no one.”

LebTalks: How significant is the signing of the maritime boundary agreement between Lebanon and Cyprus?

RB: The official signing of the Lebanon-Cyprus deal is a major achievement, one that confers important advantages on both parties. This process was delayed for a very long time for no good reason, so President Joseph Aoun and the government deserve congratulations for having seized the initiative, and for having seen the job through to completion. So do Cypriot President Nikos Christodoulides and his team, because they did the same thing. What made this historic agreement possible – after an impasse lasting almost two decades – was that Lebanon finally had a president who both understood the need for an MBA and made achieving it a top priority.

LebTalks: What does Lebanon gain by signing this deal?

RB: The agreement, which was reached by the negotiating teams in September, provides several benefits for both countries in the short, medium, and long terms.

The new equidistance line between the two states, defined according to the rules and guidelines of the United Nations Convention on the Law of the Sea (UNCLOS), provides a fair and largely uniform boundary between the two brotherly countries’ maritime zones. Most of the new turning points used to draw the line have moved in Lebanon’s favor compared to the earlier negotiation in 2011, giving it an extra 10,200 meters on its western front while Cyprus received 2,760 meters.

Crucially, the MBA wipes away all overlapping claims caused by previous uncertainty over the precise location of the border. Accordingly, this eliminates 108 km2 of (map attached) Lebanese offshore blocks that were actually in Cypriot waters, as well as 14 km2 of Cypriot blocks which were also on the wrong side of the line.

Apart from removing a key risk for would-be investors, the agreement also contributes to stability and security by providing clarity and thereby enabling easier cooperation, not just bilateral, but also, potentially, involving other states as well. It really is full of positives for both Lebanon and Cyprus, and therefore for the region as a whole.

LebTalks: What should Lebanon do to follow up on this agreement?

RB: To make the most of this clearer playing field, the logical next step is for Lebanon and Cyprus to immediately start drafting a joint development agreement, which would allow them to have a smooth partnership in place for any hydrocarbon reserves which are found to straddle their maritime boundary.

Perhaps the most important feature of the Lebanon-Cyprus MBA is that it provides a clear and stable starting point, putting Lebanon in ideal position to finish defining its maritime zones. The new line means that Lebanon’s existing maritime boundary arrangements with Israel, signed in 2022, should be tweaked a little, but it also makes it easier to do that – and to negotiate a similar agreement in the north with Syria when that country’s new leadership is ready to do so.

LebTalks: What about the objections voiced by Irael and Turkiye?

RB: With all due respect, these claims and complaints are completely baseless. As President Aoun has stressed from the very day it was signed, this accord targets no one, excludes no one, challenges no one else’s borders, and undermines no one else’s interests. I know there has been some negative commentary from both Israel and Turkiye, but there really is nothing here for anyone to be upset about. The line agreed to by Lebanon and Cyprus, which Turkiye has claimed is ‘unfair’ to residents of the self-styled ‘Turkish Republic of Northern Cyprus’, is literally several kilometers away from any waters claimed by the TRNC. Beirut and Nicosia were very careful to make sure of this.

As for the Israelis, the only material change relating to the Lebanon-Cyprus line is that it pushes the Israel-Cyprus line in Cyprus’ favor. But that’s not Lebanon’s fault. Or Cyprus’ or anyone else’s. It’s just a fact of new mapping technologies, which today are far more precise and more accurate than those used when the Israel-Cyprus line was drawn in their 2011 treaty.

On that subject, I would also note for all stakeholders in the East Med that while Lebanon and Cyprus are the region’s only full-fledged members of UNCLOS, all states are subject to its rules and precedents, which have become part of Customary International Law. Since the Lebanon-Cyprus deal adheres strictly to those rules and the science behind them, the criticisms haven’t got a legal leg to stand on. This is especially true with regard to Israel, whose own treaty with Cyprus was negotiated on the basis of the very same laws, rules, and science.

I have to assume that a lot of this is posturing, that both Israel and Turkiye will settle down once they’ve had more time to analyze the deal and see that, far from damaging them in any way, it could help all concerned by contributing to regional stability and economic growth. And again, I would go back to Aoun’s words on signing day, when he declared that “this agreement should be a foundation for wider regional cooperation, replacing the language of violence, war, and ambitions of domination with stability and prosperity.”

The upcoming UN Climate Change Conference (COP30) will be the first to take place in the Amazon, sending a powerful symbolic message about the central role developing economies must play in the global response to the climate crisis. But at a time of geopolitical fragmentation and low trust in multilateralism, symbolism is not enough. Developing economies must plan and propel the green transition. Africa is no exception.

So far, Africa’s climate narrative has been one of victimhood: the continent contributes less than 4% of global greenhouse-gas emissions, but it is highly vulnerable to the effects of climate change. This disparity fuelled the calls for “climate justice” that helped to produce ambitious climate-financing pledges from the industrialised economies at past COPs. But with those pledges going unfulfilled, and Africa’s climate-finance needs rising fast, moral appeals are clearly not enough.

A shift to a more strategy-oriented discourse is already underway. The Second Africa Climate Summit (ACS2), which took place in Addis Ababa last month, positioned the continent as a united actor capable of shaping global climate negotiations. It also produced several initiatives, such as the Africa Climate Innovation Compact and the African Climate Facility, that promise to strengthen Africa’s position in efforts to ensure a sustainable future.

Instead of continuing to wait for aid, Africa is now seeking to attract investment in its green transition, not because rich countries “owe” Africans – though they do – but rather because Africa can help the world tackle climate change. But success will require progress on four fronts, all of which will be addressed at COP30.

The first is the cost of capital. Because systemic bias is embedded in credit-rating methodologies and global prudential rules, African countries face the world’s highest borrowing costs. This deters private capital, without which climate finance cannot flow at scale. While multilateral development banks (MDBs) can help to bridge the gap, they typically favour loans – which increase African countries’ already-formidable debt burdens – rather than grants.

At COP29, developed economies agreed to raise “at least” $300bn per year for developing-country climate action by 2035, as part of a wider goal for all actors to mobilise at least $1.3tn per year. If these targets are to be reached, however, systemic reform is essential. This includes changes to MDB governance, so that African countries have a greater voice, and increased grant-based financing. Reform also must include recognition of African financial institutions with preferred creditor status, and the cultivation of a new Africa-led financial architecture that lowers the cost of capital.

The second area where progress is essential is carbon markets. Despite its huge potential for nature-based climate solutions, Africa captures only 16% of the global carbon-credit market. Moreover, the projects are largely underregulated and poorly priced, with limited community involvement. Africa is now at risk of falling into a familiar trap: supplying cheap offsets for external actors’ emissions, while reaping few benefits for its people.

While some African countries are developing their own carbon-market regulations, a fragmented system will have limited impact. What Africa needs is an integrated carbon market, regulated by Africans, to ensure the quality of projects, set fair prices, and channel revenues toward local development priorities, including conservation, renewable energy, and resilient agriculture. This system should be linked with Article 6 of the Paris climate agreement, which aims to facilitate the voluntary trading of carbon credits among countries.

The third imperative for Africa at COP30 is to redefine adaptation. Rather than treating it primarily as a humanitarian project, governments must integrate adaptation into their industrial policies. After all, investment in climate-resilient agriculture, infrastructure, and water systems generates jobs, fosters innovation, and spurs market integration.

By linking adaptation to industrialisation, Africa can continue what it started at ACS2, shifting the narrative from vulnerability to value creation. Africa should push for this approach to be reflected in the indicators for the Global Goal on Adaptation, which are set to be finalised at COP30. The continent’s leaders should also call for adaptation finance to be integrated into broader trade and technology frameworks.

The final priority area for Africa at COP30 is critical minerals. Africa possesses roughly 85% of the world’s manganese, 80% of its platinum and chromium, 47% of its cobalt, 21% of its graphite, and 6% of its copper. In 2022, the Democratic Republic of the Congo alone accounted for over 70% of global cobalt production.

But Africa knows all too well that natural-resource wealth does not necessarily translate into economic growth and development. Only by building value chains on the continent can Africa avoid the “resource curse” and ensure that its critical-mineral wealth generates local jobs and industries. This imperative must be reflected in discussions within the Just Transition Work Programme at COP30.

These four priorities are linked by a deeper philosophical imperative. The extractive logic of the past – in which industrialisation depended on exploitation and destruction – must give way to a more holistic, just, and balanced approach, which recognises that humans belong to nature, not the other way around. Africa can help to lead this shift, beginning at COP30.

The barriers to progress are formidable. China likes to tout South-South solidarity, but it does not necessarily put its money where its mouth is. The European Union is struggling to reconcile competing priorities and cope with political volatility. The US will not attend COP30 at all, potentially emboldening others to resist ambitious action. If consensus proves elusive, parties might pursue “mini-lateral” deals, which sideline Africa.

When it comes to the green transition, Africa’s interests are everyone’s interests. If the continent is locked into poverty and fossil-fuel dependency, global temperatures will continue to rise rapidly. But if Africa is empowered to achieve green industrialisation, the rest of the world will gain a critical ally in the fight for a sustainable future. – Project Syndicate

• Carlos Lopes, COP30 Special Envoy for Africa, is Chair of the African Climate Foundation Board and a professor at the Nelson Mandela School of Public Governance at the University of Cape Town.

قال الخبير في شؤون الطاقة رودي بارودي في مقابلة حصرية مع LebTalks: “إن اتفاقية الحدود البحرية بين لبنان وقبرص خطوة رائعة وضرورية وتعطينا الأمل، لأنها لا تقتصر على تحديد أساس للتعاون بين الفريقين، بل تسهم أيضاً في تقليص المخاطر عليهما، وتُظهر للمنطقة والعالم مدى فاعلية الحوار والديبلوماسية”.

ولفت بارودي إلى أن “هذه الخطوة تُتوّج مساراً تأخر بلا داعٍ لما يقارب العقدين أذ كان مجمّداً منذ العام 2007، ما يجعل الإنجاز أكثر قيمة،معتبرا أن رئيس الحكومة نواف سلام وفريقه قاموا بدورهم من خلال دعم الاتفاق، لكن الفضل في تحريك الملف من الجانب اللبناني يعود بالدرجة الأولى إلى الرئيس عون، ولذلك يُعتبر هذا إنجازاً شخصياً له،وينطبق الأمر ذاته على الرئيس القبرصي نيكوس خريستودوليدس، فهذه محطة تاريخية للبلدين معاً”.

وعن أهمية هذه المعاهدة، أوضح بارودي أن “تسوية الحدود البحرية أمر بالغ الأهمية في الوقت الراهن، لأنها تفتح الباب أمام فرص جديدة، فالاتفاق يجعل لبنان أكثر جاذبية للشركاء الدوليين الكبار الذين يحتاج إليهم لتطوير قطاع النفط والغاز البحري الناشئ. وإذا تمكّن هذا القطاع من ان يحقق جزء بسيط من إمكاناته، فإن الفوائد ستصل إلى كل الاقتصاد اللبناني تقريباً، ما يجعل من هذا الاتفاق سبباً للاحتفال الوطني. والأمر نفسه ينطبق على قبرص“.

و هنّأ بارودي الحكومة اللبنانية على قرار منح حقوق الاستكشاف في البلوك البحري رقم 8 إلى ائتلاف دولي قوي وذو سمعة ممتازة يضم شركات توتال اينرجي الفرنسية وإيني الإيطالية وقطر للطاقة القطرية، لافتاً إلى أن هذين القرارين يمهّدان الطريق أمام مستقبل يصبح فيه لبنان دولة منتجة ومصدّرة للغاز، ما يوفّر زخماً غير مسبوق لاقتصاد في أمسّ الحاجة إلى كل دعم”.

لكن بارودي حذّر من أن الطريق لا يزال طويلاً أمام التنفيذ الفعلي، قائلاً: “الخطوة الأهم الآن هي المتابعة فعلى الحكومة أن تُنفّذ سلسلة من الإصلاحات المطلوبة منها، وأن تستثمر في بناء القدرات، وتُبقي على الكفاءات والخبرات لإدارة الموارد البحرية وصونها كما أن لبنان يحتاج إلى اتفاق لترسيم الحدود البحرية والبرية مع سوريا،و تحديد نقطة ثلاثية على ذلك الجانب بين لبنان وقبرص وسوريا،وهناك مؤشرات إيجابية مع الحكومة السورية الجديدة”.

وتابع بارودي قائلاً إن على بيروت أيضاً أن تضع خطة واضحة لتطوير قطاع النفط والغاز البحري: و”أغتنم هذه المناسبة لأقترح أن تبادر الحكومة اللبنانية فوراً إلى دعوة نظيرتها القبرصية للتفاوض حول اتفاق تطوير مشترك، ينظّم تقاسم أي موارد نفطية أو غازية مشتركة تقع على جانبي الحدود البحرية،فإبرام اتفاق بهذا الخصوص سيجعل قطاعي الطاقة البحريين في كلا البلدين أكثر جاذبية للمستثمرين”.
وختم بارودي بحماسة قائلاً: “هذه هي الأبواب التي فُتحت أمامنا بفضل اتفاق ترسيم الحدود البحري . لذا، مرة أخرى، نتقدّم بالشكر والتهنئة إلى الرئيس عون والرئيس خريستودوليدس على حكمتهما في السعي وراء هذا الاتفاق، وشجاعتهما في المثابرة حتى النهاية”.

The decision of the Council of Ministers to approve Lebanon’s maritime boundary agreement (MBA) with Cyprus is a genuine tour de force, a feather in the cap for President Joseph Aoun and his government.

This step caps a process that was unnecessarily delayed for almost two decades, but that only makes this achievement more gratifying.

Having settled maritime boundaries is crucial right now because of the opportunities it opens up. The agreement makes Lebanon much more attractive to the major international partners it needs to develop its nascent offshore oil and gas sector. If and when that sector reaches even a small fraction of its potential, the benefits should flow to virtually every corner of the Lebanese economy, so everyone in the country should really celebrate this.

As if to punctuate the moment, the Council of Ministers also awarded the rights to a key offshore area, Block 8, to a reputable international consortium consisting of France’s TotalEnergies, Italy’s ENI, and Qatar’s QatarEnergy.

Together, these moves help to pave the road toward a future in which Lebanon becomes an energy producer and exporter, adding unprecedented momentum to an economy that desperately needs it.

These are both major milestones, and the government – along with President Joseph Aoun, whose own leadership on the border deal was crucial to initiating the negotiations – deserves plenty of credit.

The important part now is the follow-up. The government still needs to implement a long list of reforms, invest in capacity building, and retain competent personnel and managers to steward and safeguard the country’s offshore resources. It also will need to do its homework on how best to nurture that offshore business.

There is so much to be done – but so much to be claimed by doing it! Getting the MBL with Cyprus finalized was at the top of the list, and resolving Block 8 was not far down, so the government deserves congratulations for both.

And since I mentioned nurturing, I also take this opportunity to propose that the Lebanese government immediately invite its Cypriot counterpart to negotiate another crucial deal: a joint development agreement, or JDA, which would govern the sharing of any oil and/or gas resources which straddle their border at sea. Setting up a JDA now would not only prevent possible delays in the future – it also would make both countries’ offshore energy sectors even more attractive to investors.

Οι τεταμένες σχέσεις Ισραήλ-Λιβάνου και οι ραγδαίες εξελίξεις στη Μέση Ανατολή έχουν κινητοποιήσει τη Λευκωσία για επαφές υψηλού επιπέδου για την επικύρωση της ΑΟΖ με το Λίβανο. Ετσι ο  πρόεδρος της Κύπρου Νίκος Χριστοδουλίδης συναντήθηκε  με τον εμπειρογνώμονα περιφερειακής πολιτικής Ρούντι Μπραούντι,  μακροχρόνιος υποστηρικτής του διαλόγου, της διπλωματίας και της ειρηνικής ανάπτυξης,  ως προς τις ασφαλέστερες διαδρομές προς μεγαλύτερη σταθερότητα για ολόκληρη την Ευρω-Μεσογειακή περιοχή και άτυπο  διαμεσολαβητή των δύο χωρών. Μάλιστα έχει γράψει και σχετικά βιβλία, όπως την «οριστικοποίηση Θαλάσσιων Συνόρων στην Ανατολική Μεσόγειο: Ποιος Θα Ειναι ο Επόμενος;» και «Ένα Κλειδί, Πολλαπλά Έπαθλα: Οριστικοποίηση Θαλάσσιων Συνόρων ανάμεσα στην Κύπρο, το Λίβανο και τη Συρία».

Ο  κ. Χριστοδουλίδης και ο ομόλογός του από το Λίβανο, ο πρώην Γενικός Τζόζεφ Αουν, συμφώνησαν τον Ιούλιο να διαπραγματευτούν και να οριστικοποιήσουν μια γραμμή θαλάσσιων συνόρων . Και οι δύο χώρες αναμένουν ότι θα αποκομίσουν πολλά οφέλη από μια τέτοια συμφωνία, και η κατοχύρωση εδαφικών συνόρων στη θάλασσα θα καταστήσει ευκολότερη την προσέλκυση ξένων επενδυτών για την ανάπτυξη των ενεργειακών πηγών τους.

«Η επίτευξη συμφωνίας θα ανοίξει όλες τις πόρτες για την Κύπρο και το Λίβανο», δήλωσε ο κ. Μπαρούντι μετά από τη συνάντηση. «Οι τάσεις πηγαίνουν στη σωστή κατεύθυνση, και όχι μόνο σε σχέση με το Λίβανο. Ο πρόεδρος της Κύπρου έχει φιλόδοξα σχέδια εξωτερικής πολιτικής, ιδιαίτερα σχετικά με τις δραστηριότητες της Κύπρου τους πρώτους έξι μήνες του 2026, όταν θα έχει την προεδρία του συμβουλίου της Ευρωπαϊκής Ένωσης».

«Εκμεταλλεύτηκα επίσης την ευκαιρία να ευχηθώ στο πρόεδρο της Κύπρου  καλή επιτυχία σε αυτή την αποστολή», πρόσθεσε, «ειδικά καθώς αναμένεται να εστιάσει όχι μόνο στην ενίσχυση της συνοχής της Ευρώπης, αλλά και στην ενίσχυση του ρόλου της Κύπρου ως γέφυρα μεταξύ Ευρώπης και γειτονικών χωρών.»

Πράγματι, η Λευκωσία έχει ένα φιλόδοξο πρόγραμμα για την προεδρία της και συνεργάζεται στενά με τη Δανία, που ασκεί την προεδρία αυτό το εξάμηνο , και την Πολωνία, που θα διαδεχθεί την Κύπρο. Η λεγόμενη«τριπλή προεδρία» βοηθά στη διασφάλιση συνέχειας από τη μία προεδρία στην επόμενη.

Ο κ. Μπαρούντι έχει γράψει αρκετά βιβλία και μελέτες σχετικά με το πώς τα υπάρχοντα εργαλεία του ΟΗΕ μπορούν να βοηθήσουν τις παράκτιες χώρες να συμφωνήσουν δίκαια και ισότιμα θαλάσσια σύνορα, να μειώσουν τις εντάσεις και να αποκομίσουν σημαντικά οικονομικά και κοινωνικά οφέλη. Έχει επίσης γράψει και μιλήσει δημόσια για διάφορες ευκαιρίες περιφερειακής συνεργασίας, από διασυνδεδεμένα ενεργειακά δίκτυα και υπεράκτια αιολικά πάρκα μέχρι κοινή διαχείριση θαλάσσιων προστατευόμενων περιοχών.

Το 2023, απονεμήθηκε στον κ. Μπαρούντι  το Βραβείο Ηγεσίας από το Transatlantic Leadership Network, ένα think-tank της Ουάσινγκτον, για τη «πολύτιμη συμβολή του στην οικοδόμηση μιας ειρηνικής και ευημερούσας Ανατολικής Μεσογείου».

Σε δεκάδες άρθρα, μελέτες, εμφανίσεις στα μέσα ενημέρωσης και ομιλίες, για παράδειγμα, ο βετεράνος της κλάδου έχει τεκμηριώσει την επιχειρηματική βάση για το νησιωτικό κράτος να γίνει κέντρο επεξεργασίας και διανομής φυσικού αερίου για τους γείτονές του. Αυτό θα περιελάμβανε την Κύπρο να δημιουργήσει  έναν υπόθαλάσσιο αγωγό φυσικού αερίου προς την ευρωπαϊκή ενδοχώρα, ένα εργοστάσιο υγροποιημένου φυσικού αερίου (LNG) που θα ήταν το μεγαλύτερο έργο που έχει ποτέ η χώρα, ή και  υπεράκτια πλωτά συστήματα αποθήκευσης και υγροποίησης για την εξυπηρέτηση απομακρυσμένων χωρών δια θαλάσσης.

«Όλες αυτές οι μελέτες και οι παράγοντες που ανέδειξαν παραμένουν επίκαιροι σήμερα», δήλωσε ο κ. Μπαρούντι. «Η Κύπρος διαθέτει την εγγύτητα, τις τιμές γης και τις σχέσεις με τους γείτονές της για να γίνει ο συνεταιριστής όλων στις εξαγωγές ενέργειας, αλλά και να λειτουργήσει ως θεμέλιος λίθος για μια πιο σταθερή και ευημερούσα περιοχή.»

NICOSIA – 29, September 2025: Cypriot President Nikos Christodoulides met today with the international energy policy expert, Roudi Baroudi, who presented copies of his two latest books, “Settling Maritime Boundaries in the Eastern Mediterranean: Who Will Be Next?” and “One Key, Multiple Prizes: Settling Maritime Boundaries Among Cyprus, Lebanon, and Syria”.

Baroudi, a long-time advocate of dialogue, diplomacy, and peaceful development as the surest routes to greater stability for the entire Euro-Med region, said he felt “honored to have been received by the President.”

Christodoulides and his Lebanese counterpart, former General Joseph Aoun, agreed in July to have their respective teams negotiate and finalize a maritime boundary line (MBL). Both countries expect to derive numerous benefits from such a pact, and having treatied borders at sea will make it easier to attract the foreign investors required to develop their respective offshore oil and gas resources.

Reaching a deal “will open up all sorts of doors for Cyprus and Lebanon,” Baroudi said after the meeting. “The trends are going in the right direction, and not just vis-à-vis Lebanon. The President has ambitious foreign-policy plans, particularly with regard to Cyprus’ activities for the first six months of 2026, when it will hold the rotating presidency of the European Union.”

“I also took the opportunity to wish His Excellency every good fortune on that mission,” he added, “especially since it is expected to focus not only on shoring up Europe’s cohesion, but also on beefing up Cyprus’ role as a bridge between Europe and its neighbors.”

Indeed, Nicosia does have an ambitious agenda for its time in the presidency, and is working closely with Denmark, the current holder, and Poland, which will follow Cyprus’ term. The so-called “trio presidency” helps to ensure continuity from one presidency to the next.

Baroudi has published several books and studies on how existing United Nations tools can help coastal states to agree fair and equitable maritime boundaries, reduce tensions, and reap significant economic and social rewards in the bargain. He also has written and spoken publicly about a variety of opportunities for regional cooperation, from interconnected power grids and offshore wind farms to joint management of marine protected areas. In 2023, he was awarded the Transatlantic Leadership Award by the Transatlantic Leadership Network, a Washington think-tank, for what it described as “his valuable contribution in building a peaceful and prosperous Eastern Mediterranean.”

In addition to these works, ever since 2011, when the full potential of the East Med’s offshore hydrocarbon deposits began to emerge, Baroudi’s advocacy role has seen him provide thought leadership for a variety of projects and proposals that would transform Cyprus into a regional energy hub. In dozens of articles, studies, media appearances, and speaking engagements, for example, the industry veteran has made the business case for the island nation to become a gas processing and distribution center for its neighbors. This would include Cyprus hosting one end of an undersea gas pipeline to the European mainland, a liquified natural gas (LNG) plant that would be the country’s largest-ever project, and/or offshore floating storage and gasification units(s) to serve more distant customers by ship.

“All of these studies and the factors they highlighted are still relevant today,” Baroudi said. “Cyprus has the proximity, the land prices, and the relationships with its neighbors to make it everyone’s partner for energy exports, but also to serve as the bedrock for a stabler and more prosperous region.”

Israel’s strike on a residential building In Doha on Tuesday was a “cowardly, treacherous act of war” that “cries out” for stronger efforts to end the war, a prominent Lebanese expatriate said in a statement after explosions rocked the Qatari capital.

“This is an indefensible outrage, an unprovoked attack on a country that has done nothing but try to reduce tensions and help the region regain some semblance of stability,” said Roudi Baroudi, a high-profile executive, author, and energy expert who has spent years advocating for dialogue, diplomacy, and peaceful development across the Mena region.

“This country and its government have done everything possible to help end Israel’s continuing wars, mediating ceasefire talks since the beginning of the conflict in Gaza, also helping to end the brief but exceedingly dangerous clash between Israel and Iran, and using its good offices to reduce tensions on several other fronts as well. Qatar’s leaders and diplomats have worked tirelessly, arranging several possible off-ramps that would not only have helped to spare the Palestinian and other peoples, but also to give Israel a way out of the corner its prime minister has painted it into. The Israelis should be thanking Qatar for having played such a diplomatic constructive and selfless role,” he added.

“Instead, today, the Netanyahu government has carried out a cowardly, treacherous attack that cries out for the international community to finally step in and apply all the pressure at its disposal. History will not look kindly on a government that clearly seeks to prolong the war – and the suffering of the Palestinians and others – for no other reason than to keep itself in power . Those who fail to stand for the defenseless civilians who continue to die under Israeli bombardment and blockade will not escape the same historical judgment.”

“The madness has to end, and for that to happen, all states with any influence over Israel have to use it,” Baroudi stated. “It must be made unequivocally clear that no state can conduct itself in this manner without inviting a swift and painful response from the decent nations of this Earth: stop arming it, stop protecting it, stop funding it, stop trading with it – stop everything unless and until it starts behaving itself.” We need peace for all.

ATHENS, July 7, 2024 Greece: Energy and Environment Minister Theodoros Skylakakis is on the right track with his approach to Greece’s energy transition plans, a noted regional expert says.

“He’s got the right perspective,” industry veteran and author Roudi Baroudi said after Skylakakis spoke at this week’s Athens Energy Summit. “He understands that although the responsibility to reduce carbon emissions is universal, the best policy decisions don’t come in ‘one-size-fits-all’.”

Baroudi, who has more than four decades in the field and currently serves as CEO of Doha independent consultancy Energy and Environment Holding, made his comments on the sidelines of the forum, where he also was a speaker.

In his remarks, Skylakakis expressed confidence that Greece’s increasing need to store electricity – as intermittent renewables generate a growing share of electricity – would drive sufficient investment in battery capacity, without the need for subsidies. Among other comments, he also stressed the need for European Union policymakers to account for the fact that member-states currently face the cost s of both limiting future climate change AND mitigating the impacts that are already under way.

“Every country is different in terms of how it can best fight climate change. Each one has its own set of natural resources, industrial capacity, financial wherewithal, and other variables. What works in one situation might be a terrible idea elsewhere. That’s crucial and Skylakakis gets it,” Baroudi said. “He also understands that an effective transition depends on carefully considered policies, policies that attract investment to where it can not only have the greatest impact today, but also maximizes the impact of tomorrow’s technologies and tomorrow’s partnerships.”

“What Skylakakis is saying and doing fits in nicely with many of the same ideas I spoke about,” Baroudi added. “When he talks about heavier reliance on wind farms, the added storage capacity is a foundation that will help derive a fuller return from each and every turbine. When he highlights the utility – pun intended – of power and gas interconnections with other countries and regions, these are the prerequisites for peace, the building blocks for cooperation and dialogue.”

In his own speech shortly after Skylakakis’, Baroudi told the audience at the capital’s Hotel Grande Bretagne that countries in the Eastern Mediterranean should work together to increase cleaner energy production and reduce regional tensions.

“Surely there is a method by which we can re-establish the same common ground enshrined in the wake of World Wars I and II, recall the same common interests and identify new ones, and work together to achieve common goals, just as the UN Charter implores us to,” he said.

Baroudi advises companies, governments, and international institutions on energy policy and is an award-winning advocate for efforts to promote peace through dialogue and diplomacy. He told his audience that with both climate change and mounting geopolitical tensions posing threats to people around the world, policymakers needed to think outside the usual boxes.

In this way, he argued, “we might develop the mutual trust which alone can create a safer, happier, and better world for our children and grandchildren.”

“Consider the possibilities if Greece, Türkiye, and Cyprus became de facto – or de jure – partners in a pipeline carrying East Med gas to consumers in Bulgaria, Romania, and Italy,” he said. “Imagine a future in which Israeli and Lebanese gas companies were similarly – but independently – reliant on the same Cypriot LNG plant for 10-20%, or even more, of their respective countries’ GDPs.”

He also envisioned bilateral cooperation scenarios between Greece and Turkey and Syria and Turkey, as well as a regional interconnection that would provide backup energy for multiple coastal states.

“Instead of accepting certain ideas as permanently impossible, we ought to be thinking ahead and laying the groundwork,” Baroudi said. “For Greece and Türkiye – as for other pairs of coastal states in the region – a good starting point would be to emulate the Maritime Boundary Agreement agreed to by Lebanon and Israel in 2022.”

Stressing the potential for cooperation to address both energy requirements and the stability required for stronger growth and development, Baroudi – whose books include a 2023 volume about the Lebanon-Israel deal and a forthcoming one urging other East Med countries to do the same – called on the EU to take up the challenge.

“Using dialogue and diplomacy to expand energy cooperation would benefit not just the countries of the East Med but also the entire European Union and much of its surrounding ‘neighborhood’,” he told an audience of energy professionals and key government officials. “That level of promise more than merits the attention of Brussels, the allocation of support resources, and even the designation of a dedicated point-person tasked with facilitating the necessary contacts and negotiations.”

“This is how we need to be thinking if we want to get where we need to go,” Baroudi said. “Instead of allowing ourselves to be discouraged by the presence of obstacles, we need to be investigating new routes that go around them, strengthen the rule of law – especially human rights law – as a basis for the international system, and promote lasting peace among all nations. Only then can we declare victory over what the 18^th-century Scottish poet Robert Burns called ‘man’s inhumanity to man’.”

Now that the United States has introduced a new set of import tariffs on Chinese goods, the world’s two largest economies appear to be on the brink of open economic warfare – and developing countries are in danger of getting caught in the crossfire. Beyond the risk that they could face sanctions or other trade restrictions if one superpower perceives them to be helping the other, Sino-American trade tensions are eroding the value of many of these economies’ comparative advantages, such as cheap labour and land. Coping with these challenges will require skillful economic statecraft.

Comparative and competitive advantages are dynamic by nature; they can be acquired or lost over time. As Harvard’s Michael Porter put it in 1990, “National prosperity is created, not inherited. It does not grow out of a country’s natural endowments, its labour pool, its interest rates, or its currency’s value, as classical economics insists.” Rather, an economy’s competitiveness “depends on the capacity of its industry to innovate and upgrade.”

As a growing number of governments pursue industrial policies – from short-term protective measures, like tariffs, to more forward-looking initiatives, such as targeted subsidies and deep structural reforms – the capacity to innovate and upgrade depends significantly on the state’s ability to work with the market to boost competitiveness. This poses a challenge for advanced economies no less than it does for developing countries.

Consider Europe, which was forced to rethink its prevailing business model – selling high-quality engineering products – after Russia’s full-scale invasion of Ukraine in 2022. As supply chains were disrupted, and energy costs and inflation soared, Europe’s reliance on others for critical goods, including inputs for its own manufacturing, became an enormous economic liability. Add to that China’s growing dominance in electric vehicles, and Europe finds itself increasingly anxious about its future competitiveness.

To be sure, many European economies remain highly competitive: Europe dominates the top 20 of the International Institute for Management Development’s 2023 World Competitiveness Rankings, with Denmark, Ireland, and Switzerland leading the pack. But Europe’s larger economies have been sliding in the rankings. Germany dropped seven spots between 2022 and 2023, to 22nd place, and France fell five spots, to 33rd.

One problem, pointed out in a report from the McKinsey Global Institute, is that while Europe leads in sustainability and inclusivity, per capita GDP (at purchasing power parity) is lagging. In 2022, it was 27% lower than in the United States, with about half that difference attributable to cultural norms – Europeans work fewer hours per capita over their lifetimes – and the other half resulting from differences in productivity levels. Boosting productivity is now a central concern of European policymakers and will have to be addressed partly through the development of high-tech industries.

This approach has certainly worked for the US, which spends 3.5% of its GDP on research and development – a smaller share than South Korea (4.9%) and Israel (5.6%), but significantly larger than China (2.4%) and the European Union (2.2%). All of these economies are devoting considerable attention to dual-use R&D in strategic areas like artificial intelligence, green tech, and quantum computing. What stands out about the US is that, while the government is providing funding and incentives, not least through the 2022 Inflation Reduction Act, it is the private sector that is driving plans to invest $400-500 billion in R&D over the next decade.

As a report by the Boston Consulting Group notes, R&D is part of a “virtuous cycle of innovation” that sustains America’s technological leadership. For example, the US claims 46% of the global market for semiconductor design. Thanks to its advanced technologies, the US semiconductor industry has a gross profit margin of 59%, which is 11 percentage points higher than competitors. In 2020, US semiconductor revenues reached $208 billion – twice the revenues of the second-leading country.

But not just anyone can emulate America’s high-tech success, which is partly a function of its large and dynamic capital market. In 2022, the total market capitalization of the US stock market was 2.5 times higher than that of Europe. As a share of GDP, total market value in the US exceeded 158% in 2022, lower than Taiwan (195% of GDP), but higher than every other economy, including China (65.4%), Japan (126%), Germany (45.5%), and India (103.7%).

With its deep capital markets, the US is well-positioned to generate funding for high-risk R&D and, more importantly, reward and retain talent. Other economies – including China, the EU, Japan, and most developing countries – cannot compete on this front, not least because their banking systems remain far more risk-averse.

Recognizing America’s comparative advantages in high-tech sectors, China focused on building prowess in mid-tech areas of engineering and operational production and distribution, which opened the way to comprehensive competition at scale. Since 2014, China has led the world in exports of high-technology goods, accounting for more than 30% of the global market share. Since 2000, it has tripled its share of gross value added.

For developing countries, this means that it will be very difficult to compete in mid-tech industries, not just the high-tech sectors that the advanced economies (and, increasingly, China) dominate. Add to that their limited capacity to finance investment and their dependence on access to global or regional markets to achieve economies of scale, and economic statecraft becomes all the more challenging.

Some priorities are clear. To achieve technological upgrading, countries must invest as much as possible in digital infrastructure and education, as well as projects related to the United Nations Sustainable Development Goals. To cope with rising protectionism among major economies, they will most likely also increase support for domestic “champions,” even if it means perpetuating market fragmentation.

Overall, however, we will probably see a lot more experimentation in development strategies in the coming years. Developing countries will just have to hope that the US and China come to some sort of grand bargain before their competition escalates into conflict.

Andrew Sheng is a distinguished fellow at the Asia Global Institute at the University of Hong Kong.

Xiao Geng, Chairman of the Hong Kong Institution for International Finance, is a professor and Director of the Institute of Policy and Practice at the Shenzhen Finance Institute at The Chinese University of Hong Kong, Shenzhen.