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.

Reuters

London

Oil giant Aramco is in talks with US firms Tellurian and NextDecade on two separate LNG projects as the Saudi firm seeks to boost its gas trading and production, three sources close to the talks told Reuters.

US gas production has boomed over the past decade with oil majors and Aramco’s rivals competing to build several projects to export gas to Europe and Asia.

The state energy firm is in talks with Tellurian to buy a stake in its 27.6mn metric tonne per annum (mtpa) Driftwood LNG plant near Lake Charles, Louisiana.

Aramco officials visited the site three times last month — including together with executives from Australia’s Woodside on one of those occasions, said the sources who declined to be identified as talks are not public. Aramco is also in talks with US LNG firm NextDecade for a long-term gas purchase agreement from a proposed fifth processing unit at its $18bn Rio Grande facility.

Aramco declined to comment. Tellurian said it does not comment on market speculation. Woodside said it continuously assesses organic and inorganic growth opportunities but declined further comment. NextDecade did not immediately respond to Reuters request for comment.

Aramco is seeking to strengthen its position in the LNG market, which is set to grow by 50% by 2030, especially in the US, where LNG capacity is set to almost double over the next four years.

Tellurian has spent years and hundreds of millions of dollars on trying to finance and build the Driftwood plant.

Last fall, Tellurian warned investors that continued losses and dwindling cash reserves might not be enough within a year to cover operating and debt costs.

Aramco is one of the world’s largest oil producers and top exporter, pumping nearly 10% of the world’s crude supply.

Aramco made its first LNG investment abroad when it bought a stake in US MidOcean Energy for $500mn last year.

In March, Reuters reported that Aramco was in talks to invest in Sempra Infrastructure’s Port Arthur project in Texas.

It is also competing with Shell to buy the assets of Temasek-owned LNG trading firm Pavilion Energy.

Political 04.06.24
Interview by ALEXIA TASOULI
DIPLOMATIC CORRESPONDENT
POLITICAL.GR NEWSPAPER

Athens, Friday 31^st of May 2024: Qatar’s Emir Sheikh Tamim Bin Hamad AlThani paid official visits to Cyprus and Greece this week, meeting with senior officials from both countries as part of efforts to expand cooperation. International energy expert Roudi Baroudi, CEO of Dohabased independent consultancy Energy and Environment Holding, sat down to answer a few questions about the outcome and significance of the emir’s mission.

Question: Overall, how successful were HH the emir’s visits to Greece and Cyprus?

Answer: Both visits appear to have been very fruitful. HH the emir and his delegation held constructive talks with their counterparts in both countries, and all sides came away with clearer understandings of where the already strong relationships should go next, and how they can get there. Several important first steps were taken toward identifying likely areas for further cooperation, and now both sides have the information they need to come up with proposals for the next steps on several fronts.

Q: From your perspective, what are the main takeaways from HH the emir’s trip?

A: There are several elements at play here, multiple processes unfolding according to their own timelines, but all interrelated in some ways. The first thing to consider is that both visits constitute reaffirmations of Qatar’s traditional diplomatic strategy, much of which revolves around having stable and friendly relations with as many counterparts as possible. That might sound a little basic, but it’s really not: many governments “pick sides” in various international disputes, which often amounts to letting other countries decide your foreign policy for you. By contrast, the Qatari model seeks instead to be on good terms with all sides in most disputes, and the value of that approach has been on display for years: Doha has successfully used its good offices as a mediator in the past, and more recently it has done the same for ceasefire talks and other negotiations between Israel and Hamas.

This same philosophy also informs Qatar’s stances in the Mediterranean, where it looks for the warmest possible relations with Greece and Cyprus while simultaneously maintaining close ties with Türkiye, with which both Athens and Nicosia have been at odds for decades. I should mention, too, that Cyprus follows a similar path, maintaining friendly relations with both Israel and Lebanon, for example.

Both Cyprus and Greece also would like to play central roles in the development and buildout of facilities aimed at carrying energy to the European mainland. This is a core part of their respective plans to grow and develop their respective economies, and the necessary investment and expertise will require strong partnerships.

Q: So how do these priorities tie in with the emir’s visit?

A: In several ways, really. First, HH the emir’s goodwill visit is a reconnection: the COVID pandemic threw a lot of international issues into hibernation as governments everywhere spent a lot of time looking inward for several years. By visiting now, he’s demonstrating in general that he values Qatar’s relationships with both Cyprus and Greece. The reengagement also bodes well for particulars, and there are several opportunities for cooperation because the parties can help one another. Both Greece and Cyprus want to be part of plans to open new channels for natural gas into Europe, whether it’s Eastern Mediterranean gas or from further afield. For this they could find no better partner than Qatar, which, in addition to its own worldleading LNG industry, has also been acquiring stakes in energy assets around the world. But both countries also want investment in other sectors, too, and once again, both the Qatar Investment Authority, the country’s sovereign fund, and various private investors are on the hunt for moneymaking ventures.

Q: What does the emir’s trip mean for Greece, in particular?

A: To me the time looks ripe for more cooperation. The period since 20072008 has been very difficult, but the current government under Prime Minister Kyriakos Mitsotakis has done wonders, not just to stabilize the Greek economy and restore hope to the population, but also to help Greece regain its rightful place at the European table. The country is now looking to build on this foundation by fully embracing cuttingedge sectors like digital connectivity and cleantech, but also by reinvigorating its traditional shipping expertise by becoming a major logistics center and by getting more out if its hospitality sector, too. The long recession is over, and some asset classes look very attractive to Qatari investors – and others, as well – especially given the stronger, cleaner governance and leadership on which Mitsotakis has built his reputation.

Q: What about Cyprus?

A: Another European land of opportunity. All other things being equal, if the world operated according to logic instead of politics, Cyprus would already be a major energy hub. Its location makes it the ideal base for the Eastern Med’s burgeoning offshore gas industry, which also includes strategic ports, telecoms, and other support services. Many analysts see real potential in several sectors, including ports, banking, and a host of technologies. The increased economic activity will also introduce more people to the beaches and other attractions that make the island’s tourism industry so popular. Another ingredient is leadership: President Nikos Christodoulides has been in office for less than a year, but the former diplomat and foreign minister has already shown himself to be both a highly competent Head of State and a stern defender of his country’s economic development & interests.

And all this is not to mention the shipping of the gas itself, for Cyprus is not just part of the European Union: it is also very much an East Mediterranean country, so it stands to reason that it should become a gateway through which some of the world’s newest gas producers can sell their wares into the world’s largest gas market. Whether it’s a pipeline to Greece, an LNG plant to supply customers in Asia and East Africa, or both, it’s a nobrainer that Cyprus is the place to start the journey. To me, this is Cyprus’ destiny, and if it’s further Qatari investment that makes it happen, so much the better. Remember, too, that QatarEnergy is already involved in Cyprus’ gas industry, partnering with ExxonMobil to explore two offshore blocks. The Qataris know the LNG business like no one else, and their robust & steady reliability as partners is unchallenged: in 20172021, despite an illegal blockade imposed by some of their neighbors, they continued to process and ship at the highest rates to keep supplying LNG to all of their customers around the world, helping to calm world markets during a very vulnerable period.

“Baroudi, left, with Mitsotakis at the 2019 EUArab World Summit in Athens, before the latter became Greece’s prime minister. According to Baroudi, Mitsotakis has done much to speed his country’s recovery.”

Finally, the role played by Qatar and its leaders has captured the attention of the international community due to the wise policies of the Ruler of the Gulf state. His efforts have been lauded and appreciated by East and West alike, ranging from visits of goodwill by the Emir to regional countries, to forging relations based on mutual respect and cooperation. It also has been noted that visits by the Emir tend to manifest high levels of support in mediation, bringing peace, providing materials or otherwise, as and when needed.

Many of us take electricity for granted. We flip a switch and expect the light to turn on. But the capacity and resilience of power systems – generation, transmission, and distribution – are not guaranteed, and if these systems fail, it’s lights out for the entire economy.
I recently participated in a meeting of the Power and Energy Society (PES), which operates under the aegis of the Institute of Electric and Electronic Engineers. The mood at the event – attended by more than 13,000 industry professionals from around the world, plus hundreds of companies exhibiting advanced equipment and systems – was upbeat and energetic.
But, despite the prevailing “can-do spirit,” everyone at that meeting knew that the power sector is confronting tremendous challenges, beginning with the growing frequency of extreme weather events. Firms are now working to devise innovative ways to restore power more quickly after outages, and are investing in infrastructure that will increase resilience to shocks. This includes efforts to minimise the risk that the system itself will cause or exacerbate a shock, such as a forest fire.
Compounding the challenge, the power sector must make progress on the green transition. That means reducing its greenhouse-gas emissions, while maintaining a stable power supply for the economy. Since renewables work differently from fossil fuels, this implies a transformation not only of power generation, but also of transmission and distribution, including storage.
Meanwhile, demand for electricity is set to surge, owing to factors like electric-vehicle adoption and the rapid growth of data centres and cloud-computing systems. The power needs of artificial-intelligence systems, in particular, are expected to grow exponentially in the coming years. According to one estimate, the AI sector will be consuming 85-135 terawatt hours per year – about as much as the Netherlands – by 2027.
To meet these challenges, all three components of the power system need to be integrated in so-called smart grids, which are managed by digital systems and, increasingly, AI. But developing smart grids is no small feat. For one thing, they require a host of devices and systems, such as residential smart meters and distributed energy resource management systems (DERMS), which are needed to manage multiple flexible and fluctuating energy sources and integrate them into power networks. And, because they are built on digital foundations, effective cybersecurity systems are essential to support stability and resilience.
None of this will come cheap. The International Energy Agency estimates that, if the world economy is to reach net-zero emissions by 2050, annual investment in smart grids will need to double – from $300bn to $600bn – globally through 2030. This represents a significant share of the estimated $4-6tn that will be needed annually to finance the overall energy transition. But, so far, the required investment has not been forthcoming. Even in advanced economies, the smart-grid funding gap exceeds $100bn.
Meeting all these challenges will require coordinated action across what are often highly complex systems. The US is a case in point. America’s roughly 3,000 electric utilities operate in various combinations of generation, transmission, and distribution, as well as playing a market-making role as intermediaries between generation and distribution. Each US state has its own regulators, and local distribution can be regulated at the municipal level. America’s nuclear infrastructure is managed at the federal level, by the Department of Energy, which also funds research and, under the 2022 Inflation Reduction Act, finances investment in the power sector. And the US Environmental Protection Agency plays a major role in setting the direction and pace of the energy transition.
Other entities oversee the country’s three major grid regions and the interconnections among them. For example, the not-for-profit North American Electric Reliability Corp is responsible for six regional entities that together cover all the interconnected power systems of Canada and the contiguous US, as well as a portion of Mexico.
Achieving the necessary transformation of power systems will require us to figure out how to finance the relevant investments, who will ultimately pay for them, and how a complex, technologically sophisticated, and rapidly evolving smart-grid system can be co-ordinated.
It is difficult to imagine how investment could be mobilized at the scale necessary without the financing power of national governments. This is especially true in the US, where there is no shared carbon price to level the playing field. It is thus good news that, last month, President Joe Biden’s administration announced a range initiatives and investments designed to support and accelerate structural change in the power sector.
As for who should pay, the answer is complicated. In principle, investments that reduce costs or augment service quality and stability should be reflected in tariffs. The problem is that the investments that improve service quality must be spread across multiple entities that own different assets in the grid. Highly decentralised regulatory structures would make coordinating all these tariff changes and transfers unwieldy, at best.
When it comes to investments that advance the green energy transition – including the global public good of emissions reduction – we know who should not pay: local communities. In fact, the implementation of local-level charges to finance such investments is bound to lead to inefficiencies and underinvestment. It would also be unfair: there is no good reason why consumers in areas with problematic legacy systems should pay more. If they are asked to, they are likely to resist.
A better approach would be to use an expanded federal industrial policy not only to help finance and especially to co-ordinate long-term investments in the power sector, but also to guide the development of a complex, interconnected smart-grid system. This system needs a banker and an architect working with firms, regulators, investors, researchers, and industry organisations like the PES to carry out a complex, fair, and efficient structural transformation. National governments need to be involved in filling both roles. – Project Syndicate

• Michael Spence, a Nobel laureate in economics, is Emeritus Professor of Economics and a former dean of the Graduate School of Business at Stanford University and a co-author (with Mohamed A El-Erian, Gordon Brown, and Reid Lidow) of Permacrisis: A Plan to Fix a Fractured World (Simon & Schuster, 2023).

As countries around the world experienced record temperatures last year, UN Secretary-General Antonio Guterres declared: “We must turn a year of burning heat into a year of burning ambition.” But to move away from fossil fuels and unlock the green transition’s economic benefits, such as job creation and universal access to clean energy, industry leaders and policymakers must work together to translate the commitments made at the UN Climate Change Conference in Dubai (COP28) into actual renewable gigawatts.
COP28 marked a historic turning point in the battle against climate change. Rallying around the UAE Consensus, world leaders pledged to move away from fossil fuels, agreeing to triple renewable power capacity to at least 11,000 gigawatts and double energy efficiency by 2030.
But ambition alone is not enough to achieve these targets and limit global warming to 1.5C. Governments must invest in mature, cost-competitive renewable technologies that can be rapidly deployed at scale. When integrated with long-duration energy storage, green hydrogen, and system optimisation, these technologies represent the most reliable and flexible way to accelerate the energy transition.
Renewables will undoubtedly shape the global energy landscape in the coming years. Both solar and wind power are expected to grow significantly, with hydropower serving as the backbone of grid flexibility. Consequently, renewables are poised to become the twenty-first century’s dominant source of global electricity.
But as a joint report released by the International Renewable Energy Agency (IRENA) and the Global Renewables Alliance (GRA) ahead of COP28 noted, tripling renewable capacity will require cooperation between the private and public sectors. Partnerships should focus on initiatives that deliver immediate results, such as mobilising low-cost financing, accelerating permitting processes, clearing grid connection backlogs, reforming government auction mechanisms for renewable-energy projects, and diversifying global supply chains. A strong commitment to inclusivity and the active participation of developing economies must be at the heart of these efforts. IRENA and GRA are demonstrating this commitment by collaborating on the annual reports commissioned by the COP28 Presidency to monitor progress toward the global tripling target and facilitate the energy transition.
We must, however, move faster, especially if we aim to ensure that progress is equitably distributed around the world. While renewable power capacity rose by 473 gigawatts in 2023, the economic benefits of the energy transition did not reach every country. Remarkably, 83% of these increases were concentrated in China, the European Union, and the US, leaving many countries in the Global South behind.
In fact, the shift to renewables is alarmingly slow in many parts of the world. Opportunities to address development and access challenges in Sub-Saharan Africa, where more than 500mn people still lack access to electricity, are being squandered. This sluggish transition can be attributed largely to the lack of affordable financing, adequate planning, and the policy and market frameworks needed to support the adoption of renewable energy. Tellingly, public fossil-fuel subsidies reached $1.3tn in 2022 – roughly the annual investment needed to triple renewable capacity by 2030.
A critical first step toward fostering greater public-private co-operation in pursuit of COP28’s ambitious targets is to reform the global financial architecture. Africa, for example, accounts for 17% of the world’s population but has received less than 2% of global investments in renewable energy over the past two decades, underscoring the need to reduce capital costs and attract private investors. Developing industrial clusters and initiating grant programs could also help foster environments conducive to innovation and private-public partnerships.
Recent commitments by world leaders offer glimmers of hope. African leaders at the September 2023 Africa Climate Summit in Nairobi, for example, pledged to increase the continent’s renewable capacity to at least 300 gigawatts by 2030. This effort aims to reduce energy poverty and boost the global supply of cost-effective clean energy suitable for industrial use.
Kenyan President William Ruto, a key advocate of the Nairobi agreement, established the Accelerated Partnership for Renewables in Africa, an African-led international alliance of governments and stakeholders that aims to accelerate renewable-energy deployment, increase access, promote green industrialisation, and strengthen economic and societal resilience.
Governments and business leaders should harness the current political momentum to foster co-operation between policymakers and private investors. As governments develop appropriate policy and market frameworks to facilitate the transition to renewables, the private sector – historically responsible for 86% of global investments in renewable energy – is poised to lead the charge. Together, we can achieve a clean, secure, and just energy future. But to realise this vision, we must act fast. – Project Syndicate

• Francesco La Camera is Director-General of the International Renewable Energy Agency. Bruce Douglas is CEO of the Global Renewables Alliance.

QatarEnergy has signed a farm-in agreement with ExxonMobil to acquire a 40% participating interest in two exploration blocks offshore Egypt.

Under the terms of the agreement, which is subject to customary approvals by the government of Egypt, QatarEnergy will acquire a 40% working interest in each of the “Cairo” and “Masry” Offshore Concession Agreements, while ExxonMobil (the Operator) will retain the remaining 60% working interest.

Commenting on the signing of this agreement, HE Minister of State for Energy Affairs, the President and CEO of QatarEnergy Eng. Saad bin Sherida Al Kaabi said: “I am pleased with our entry into the Cairo and Masry offshore exploration blocks as they expand QatarEnergys presence in the Arab Republic of Egypt and extend our ambitious exploration program in-country.”

“We look forward to working with our valued long-term strategic partner ExxonMobil, as well as with the Egyptian Natural Gas Holding Company (EGAS) and the Egyptian Ministry of Petroleum and Mineral Resources, in this promising and prospective region. I would like to take this opportunity to thank the Egyptian authorities and our partners for their valuable support and cooperation,” His Excellency added.

The Cairo and Masry offshore exploration blocks were awarded to ExxonMobil in January 2023, and cover an area of approximately 11,400 square kilometers in water depths of 2,000 to 3,000 meters.

From Mexicans left homeless by rising seas to Colombians affected by coral bleaching, hundreds of people are telling the top human rights court in the Americas what climate change means to them in an historic case that could shape international law.
Environmental lawyers also hope the hearings at the Inter-American Court of Human Rights (IACHR), which were requested by Colombia and Chile, will define the duties of states to confront the climate crisis and stop it infringing on human rights.
As well as receiving submissions from climate victims, the Costa Rica-based court, which started its inquiry in Barbados in April, will hear from UN agencies, legal experts, grassroots environmental campaign groups, and youth groups.
The next sessions are due to be held in Brasilia and then Manaus, Brazil at the end of May, and an advisory opinion is expected by May 2025.
“We’re hoping that the court’s legal opinion is a guide and reference for Mexico, and other states, to develop public policies from a climate justice perspective,” said Nora Cabrera, a lawyer and head of Our Future, a Mexico-based youth climate justice campaign group.
“And that it includes loss and damage compensation for affected communities, and adaptation policies for those not yet directly affected by climate change,” said Cabrera, who will be speaking at the next hearing in Manaus.
In January, Colombia and Chile asked the IACHR to issue the advisory opinion, saying that they were experiencing the “daily challenge of dealing with the consequences of the climate emergency,” including fires, landslides, droughts and floods.
“These events reveal the need for an urgent response based on the principles of equity, justice, co-operation and sustainability, with a human rights-based approach,” they said in their petition.
“There is a close relationship between the climate emergency and the violation of human rights,” they added.
It is this link between climate change and human rights that the IACHR will seek to define, while also examining how climate change affects migration and looking at the disproportionate effect on children, women and Indigenous people.
Chile and Colombia also asked the court for clarification on a state’s duties to protect environmental activists.
Latin America is the most dangerous place in the world for environmental and land defenders, according to advocacy group Global Witness. Around 90% of the 177 killings of environmental activists recorded in 2022 took place in the region.
“The hearing aims to ask for clarity about human rights obligations and the climate crisis,” said Jacob Kopas, senior attorney at the Earthjustice environmental group, one of a group of lawyers who spoke at the Barbados hearing on April 26.
“It will help to create a more concise framework to guide state behaviour and policy to confront the climate crisis and protect human rights,” said Kopas.
Among those submitting testimonies will be the residents of the El Bosque fishing community in Tabasco, Mexico, where rising sea levels caused by climate change have swept away about 200 meters of coastline.
Since 2019, the school and more than 50 homes have been destroyed, forcing about 200 people to leave.
El Bosque community leader, Guadalupe Cobos, said she and 10 neighbours will probably have to leave within a year and resettle in an area about 12km away, where new homes are being built by the government.
“We depend on the sea but coastal erosion has affected our way of life. It’s important for the court to know that we’re living climate change now and that this isn’t something that will happen in the future in 20 or 50 years’ time,” said Cobos.
“We want the court to hear our experiences and to know that our rights have been violated, that we have been forced to migrate,” Cobos told the Thomson Reuters Foundation.
The court’s advisory opinion could have important implications for climate litigation across Latin America and the Caribbean and make it easier for communities living with the effects of global warming to take legal action.
The opinion will apply to all signatories of the American Convention on Human Rights, most of whom are members of the Organization of American States. The United States and Canada have not ratified the treaty however.
The advisory opinion will help shape the region’s legal systems as many countries incorporate its jurisprudence into their laws and constitutions.
“We’re hoping that the court makes the link between the climate crisis and human rights violations and that it recognises climate displacement,” said Cabrera, whose organisation has been supporting the El Bosque community.
The IACHR is known for its progressive stance on climate justice and human rights.
In March, it recognised that citizens in Peru have the right to a healthy environment when it ruled in favor of people living in the Andean mining town of La Oroya, who had suffered from decades of environmental pollution.
Other courts are also breaking new ground in this sphere.
In Colombia in April, in response to a lawsuit filed by a farming couple who were driven out of their home by flooding caused by heavy rains, the country’s constitutional court recognised the links between environmental disasters and climate change and people being forcibly displaced.
Across the world, other top courts are also examining the connection between human rights and climate change. On April 9, the European Court of Human Rights (ECHR) ruled that the Swiss government had violated the human rights of its citizens by failing to do enough to combat climate change.
Two other courts – the International Court of Justice (ICJ) and the International Tribunal for the Law of the Seas (ITLOS) — are also expected to give advisory opinions on international legal obligations of states regarding climate change.
Kopas said the IACHR ruling could lead the way by delivering a “forward-reaching and progressive” advisory opinion.
“It’s historic because of the climate crisis we are in. This is the crisis of our lifetime and of all future generations.” — Thomson Reuters Foundation

Principal market for Qatari LNG continues to be Asia, accounting for 72% of its total supplies in 2022, Doha-based Gas Exporting Countries Forum (GECF) said in a report.
Qatar accounted for 16% of European LNG imports in 2022, GECF said in its ‘Global Gas Outlook 2050’.
In 2022, net gas exports from the Middle East amounted to 139 bcm. Projections indicate a significant surge in overall net exports to 292 bcm by 2050.
In 2022, the Middle East contributed 96mn tonnes to global LNG exports, representing 25% of the total global LNG exports.
Qatar secured the top position as the leading global LNG exporter, shipping 79mn tonnes, while Oman and the UAE exported 11mn tonnes and 5.5mn tonnes respectively.
“Notably, Qatar supplied 16% of European LNG imports. However, Europe only represented 24% of Qatar’s overall LNG exports, while the principal market for Qatari LNG continued to be Asia, accounting for 72% of the total,” GECF said.
According to the forum, the “primary force propelling natural gas exports” from the Middle East is set to be growth in LNG supplies, notably led by Qatar.
The upward trajectory of Qatar’s position as a leading global LNG exporter in 2022 indicates a growing momentum towards additional expansions or advancements post-2030s and 2040s following the North Field expansion projects.
With ambitions to increase its current capacity of 77mn tonnes per year by 64%, Qatar aims to reach 126mn tonnes per year through the North Field expansion by 2028.
By 2050, LNG exports from the Middle East will reach 205mn tonnes, largely due to the expansion efforts in Qatar. Anticipated long-term LNG imports are predicted to reach 16mn tonnes by 2050.
Consequently, the long-term outlook suggests an expansion of LNG net exports to reach 189mn tonnes. Primary destination for Middle Eastern LNG is expected to continue being Asia, with that region set to have an even more significant role in the long run.
By 2050, GECF noted, the Asia Pacific region is poised to receive 186mn tonnes of LNG sourced from the Middle East, constituting over 90% of all LNG exported from that region.
The region possesses 101mn tonnes per year of liquefaction capacity, primarily dominated by Qatar’s 77mn tonnes per year. Plans are in progress from 2022 to 2050 to add approximately 130mn tonnes per year of extra LNG liquefaction capacity to the region, with Qatar leading expansion efforts.
The utilisation rate of this increased LNG liquefaction capacity is projected to be high, surpassing 90% by 2050, GECF said.