News Details

AFED Panel at Bahrain Energy Management Conference:

Call for Diversification and Phasing Out of Subsidies

Manama, 11 December 2013

Arab Forum for Environment and Development (AFED) hosted the opening session at the First Energy Management Conference, which concluded in Manama Wednesday. The event was organized by Bahrain Society of Engineers, in cooperation with Arabian Gulf University (AGU).

AFED Secretary General Najib Saab highlighted in his opening address the urgency of tackling energy pricing to boost efficiency and cut waste. He said that although energy intensity and per capita carbon emissions are among the highest in the world, over 50 million Arabs are without access to reliable electricity services, which demands better management and regional cooperation. Diversification of energy sources and the economy as a whole is overdue, he concluded.

Prof. Ibrahim Abdelgelil, AFED Energy report co-editor and Director of Sheikh Zayed Academic Chair for Energy and Environment at Arabian Gulf University, presented the findings and recommendations of the report. He said that with a long-term commitment and the right policies and investments, Arab countries could be leaders in the global clean energy club. “This would create high paying jobs and allow the export of renewable energy in addition to oil and gas.”

Dr. Mohamed Sabban, former chief Saudi climate change negotiator and Dr. Saad Al-Jandal of Kuwait Institute for Scientific Research commented on the findings, joined by lively debate with the public.

Sabban described AFED report as “the most comprehensive and balanced study on Arab energy, which “provides sound shopping list to policy makers.” Subsidies should be phased out, sooner better than later, he added. Although energy needs to be diversified, Sabban remarked, the nuclear option “should not be celebrated, as it provides neither safety nor security.” He agreed with AFED report that priority should be given to energy efficiency and cleaner use of oil, along with renewable energy.

Sabban described climate change talks as being “shrouded with hypocrisy, as each party waits for the other to say no, without providing viable alternative.” While the principle of “common but differentiated responsibility” is still valid, Sabban said that a formula should be reached to distribute responsibilities fairly among developed countries, emerging economies like China and India, and the rest of developing countries, with immediate commitments on developed countries who bear historical responsibility, and varied phases of grace periods on the others.

Al-Jandal described AFED report as “eye opener to policy makers.” He said subsidies make people lazy and obstruct development, and called for prices of energy to be revamped in such a way that makes consumers pay more as they consume more.

During the conference, Saab presented AFED report to HE Sheikh Ahmad bin Mohamed Al Khalifa, Bahraini Minister of Finance and Head of Oil and Gas Authority. He also received President of Arabian Gulf University Dr. Khaled Ohaly, accompanied with Dr. Ibrahim Abdelgelil, and discussed future cooperation.