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1. From Interconnection to Integration: German-Italian Energy Relations and the SoutH2 Corridor

Author:
Pier Paolo Raimondi and Wolfgang Münchau
Publication Date:
01-2024
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
On 22 November 2023, the German Chancellor, Olaf Scholz, and the Italian Prime Minister, Giorgia Meloni, signed a German-Italian Action Plan.[1] The Plan promises greater collaboration between the two countries on the biggest challenges currently facing Europe. Among these priorities is environmentally sustainable economic growth and the acceleration of climate protection. While the Action Plan is relatively terse, focusing on the establishment of fora for greater cooperation rather than providing a detailed roadmap, its energy and climate section does highlight a specific project as an example of closer cooperation: the acceleration of the completion of the so-called South-Central Corridor for the transport of hydrogen throughout Europe. This Corridor has the primary function of enabling the import of hydrogen produced in North Africa into the very core of Europe and thus to the high-demand areas of Germany and Northern Italy. One especially important part is the so-called SouthH2 Corridor, which includes a pipeline running the entire length of the Italian peninsula before connecting to Southern Germany via Austria. There are strong political and strategic arguments for a deeper energy cooperation between Italy and Germany, despite some differences.[2] Hydrogen and gas infrastructure is a key area where intensified cooperation is crucial.[3] Through the SouthH2 Corridor, the two countries have indeed expressed their willingness to collaborate precisely on hydrogen infrastructure, notably the SoutH2 Corridor. However, such cooperation cannot be limited to the infrastructural part; it must extend to a series of related issues in which both countries should seek to align their political and legal initiatives, starting from overcoming uncertainties regarding the development of hydrogen demand and the use of other net-zero technologies in both countries. In short, cooperation on infrastructure can be used as a jumping off point for a deeper collaboration on and exchange of information about their broader transition strategies. Such bilateral coordination would also contribute to the achievement of EU Green Deal objectives more broadly.
Topic:
Climate Change, Bilateral Relations, Natural Resources, Regional Integration, Pipeline, and Energy
Political Geography:
Europe, Germany, and Italy

2. The State of EU-US Digital and Energy Cooperation

Author:
Federica Marconi, Wolfgang Münchau, and Irene Paviotti
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
In a time of rapid technological advancements and changing energy paradigms, the European Union and the United States are trying to coordinate their efforts to navigate the complexities of an ever-evolving landscape. Transatlantic dialogues and cooperative endeavours are key mechanisms for mitigating tensions and fostering a common assessment of the opportunities and risks arising from these advancements. Critical in this regard are the problems of governance emanating from technological development and its consequences in the digital sphere as well as the delicate balance between security, competitiveness and environmental targets in the energy dimension.
Topic:
Climate Change, International Cooperation, Political Economy, Governance, European Union, Transatlantic Relations, Digital Policy, and Energy
Political Geography:
Europe, North America, and United States of America

3. Small-scale LNG in the Euro-Mediterranean: A Contribution to the Decarbonisation of the Maritime Sector

Author:
Pier Paolo Raimondi
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
While governments have reaffirmed their commitment towards energy transition in light of the current energy crisis, the urgency to act implies to use all possible solutions to reduce CO2 emissions during the transitional period. Natural gas can play a role in the decarbonisation of certain sectors, such as the transport sector. In this sense, the small-scale LNG industry could contribute to the decarbonisation of the Mediterranean region. Regulatory and political incentives as well as socioeconomic and environmental benefits could represent critical drivers for the growing role of the small-scale liquefied natural gas (SSLNG), while it will need to overcome several challenges (e.g. political pressure, economic and infrastructure constraints).
Topic:
Climate Change, Natural Resources, European Union, Gas, Decarbonization, and Energy
Political Geography:
Europe and Mediterranean

4. From Threat to Opportunity: Harnessing Climate Change to Build a Prosperous Future for Iraq and the Region

Author:
Azzam Alwash
Publication Date:
06-2023
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Climate change and environmental degradation are adding serious strain to Iraqi coping capacities and governance mechanisms in a county already struggling with elevated water scarcity, instability and demographic growth. Widely recognised as a country at high-risk from climate change, Iraq faces the urgent need to diversify its economy away from hydrocarbon resources, while developing mechanisms of cooperation and co-dependency with regional neighbours to provide sustenance and opportunities to its youthful population. Drawing on Iraq’s history as a trade hub and bread basket for the region, Iraq and its neighbours need to urgently work together to overcome divisions and plan for a better future if the challenge of climate change is to be transformed into an opportunity capable of promoting stability and integration in an increasingly fragile Middle East.
Topic:
Climate Change, Environment, Water, Sustainable Development Goals, and Energy
Political Geography:
Iraq and Middle East

5. The Arctic within EU Strategies: A Renewed Centrality

Author:
Luca Cinciripini
Publication Date:
07-2023
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
In June 2023, the Arctic Council resumed its work after a year’s suspension in response to Russia’s invasion of Ukraine.[1] The Council is a pillar of the institutional architecture of the region; the main framework for cooperation between the Arctic states that also involves the North’s indigenous peoples in issues of environmental protection and sustainable development. In recent years, the overlap between climate and security crises has profoundly transformed the region, generating economic opportunities but also endangering local populations and amplifying international competition.[2] The European Union, which is increasingly interested in the issue of climate security (the multiplier effect of climate change and its, even indirect, impact on security risks spanning several dimensions – economic, human and political),[3] has long tried to devise an Arctic policy that takes into account such changes by tackling emerging challenges and grasping opportunities. To better address these issues, since 2013 the EU has been applying for full observer status to the Council; however, it has only been permitted to observe the organisation’s activities without a formalisation of its role. At the same time, however, to be able to play an active role in the region, the EU’s strategy must cover the full width of the Arctic institutional architecture, which encompasses a plurality of diplomatic, legal and institutional instruments that go beyond the framework of the Council.
Topic:
Climate Change, Environment, Politics, European Union, Institutions, and Russia-Ukraine War
Political Geography:
Europe and Arctic

6. Building Climate Resilience in Urban Informal Settlements through Data Co-production

Author:
Giulia Sofia Sarno
Publication Date:
03-2023
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
Climate change is worsening the number, frequency and duration of natural hazards across the globe, making disaster risk reduction and resilience building among the most pressing challenges ahead. According to UN-Habitat, informal settlements are where the impacts of climate change are the most acute in urban areas and strengthening resilience in these neighbourhoods represents a very complex yet urgent challenge.[1] Today, urban areas are home to 56 per cent of the world’s population and this figure is projected to increase to 60 per cent by 2030 and 68 per cent by 2050, with 90 per cent of the growth by 2050 expected to occur in less developed economies.[2] In these countries, population growth and displacement (including climate-driven migrations) will lead to rapid and unplanned urbanisation forcing a growing number of people into informal settlements. Currently, one billion people live in informal settlements, mostly in Asia, Sub-Saharan Africa and Latin America and this figure is expected to grow to 3 billion in 2050.[3]
Topic:
Climate Change, Crisis Management, Informal Settlement, and Energy
Political Geography:
Global Focus

7. Are Small Modular Reactors Europe’s Energy Salvation?

Author:
Manuel Herrera
Publication Date:
11-2022
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
Nuclear power has never lived up to expectations due to its enormous development, construction and maintenance costs, as well as safety concerns. However, governments committed to ambitious climate change targets have taken a second look at it. In Europe, for instance, in January this year, the European Commission added nuclear power to the list of projects eligible for green financing and, in July, included it in its taxonomy.[1] Russia’s invasion of Ukraine, meanwhile, has sent fossil fuel prices soaring and put energy security at the top of the political agenda in Europe.
Topic:
Climate Change, Nuclear Power, and Energy
Political Geography:
Europe and Eastern Europe

8. Russia’s Climate Action and Geopolitics of Energy Transition: The Uncertain and Unsettling Outlook following Russia’s Invasion of Ukraine

Author:
Kamila Godzinska and Maria Pastukhova
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Russia’s invasion of Ukraine has profoundly altered the outlook for Russia’s energy transition and created uncertainties on the global path towards net zero. In response to global economic shifts, Russia had begun taking steps towards decarbonisation, albeit without plans to depart from its hydrocarbon-based economic model in any substantial way. The new political, trade and financial environment induced by Russia’s act of aggression has damaged its potential to maintain the once-emerging momentum. Russia’s actions and the Western response are also reconfiguring global energy relations, with profound economic and geopolitical consequences that may, unless managed, undermine international cooperation on the energy transition and slow down progress on climate change mitigation.
Topic:
Climate Change, Sanctions, Geopolitics, and Energy
Political Geography:
Russia, Turkey, Eastern Europe, and Balkans

9. Putin vs Monnet: European Resilience, Energy and the Ukraine War

Author:
Nathalie Tocci
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
As the Ukraine war escalates with no end in sight, Europe’s resilience is put to test. Nowhere is this clearer than in the energy sphere, where the crisis first created the perfect timing for Russia’s invasion and then became weaponised against Europe in the broader confrontation with the West. In this confrontation, two interpretations of resilience come to the fore: Vladimir Putin and Jean Monnet’s, with the former emphasising pain endurance and the latter transformation through crisis. The jury is out on whether Putin or Monnet will win the day, and whether and how the European Union will prove and strengthen its resilience. But at the height of this crisis, my bet today is squarely on Jean Monnet.
Topic:
Climate Change, Politics, European Union, Institutions, Energy, and Russia-Ukraine War
Political Geography:
Russia and Europe

10. Sense and Nonsense behind Energy Price Caps

Author:
Daniel Gros and Nathalie Tocci
Publication Date:
07-2022
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
In official circles at the highest level, from the G7 to the European Council, a tense debate is taking place on what to do about spiralling gas and oil prices, which have either broken or have come dangerously close to breaking record territory. In Europe, a special meeting of the European Council on energy was originally scheduled for the fall, but is now being brought forward, while the European Commission is working on an emergency plan to prepare for a complete cut-off of Russian gas. Energy prices dominate the agenda of our leaders. Yet it is a confused and often confusing debate that is worth unpacking.
Topic:
Climate Change, Oil, Gas, and Energy
Political Geography:
Russia and Europe

11. A Healthier and More Sustainable Global Food System: What is at Stake for the EU?

Author:
Marta Antonelli
Publication Date:
01-2022
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
Fixing the global food system is arguably the most powerful leverage to nurture the world’s population while keeping human activity within the biophysical limits of the planet. Yet, food systems are today a threat to both human and planetary health, and thus require bold and forward-looking strategies as well as multi-stakeholder collaboration.
Topic:
Agriculture, Climate Change, Health, Politics, Natural Resources, European Union, Food Security, and Sustainable Development Goals
Political Geography:
Europe

12. Global Environmental, Social and Governance (ESG) Capital Allocation Strategies Between Impact Ambitions and Measurement Challenges

Author:
Sara Lovisolo
Publication Date:
08-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Responsible investment as a capital allocation strategy has evolved from its ethical and political origins to embrace science-based considerations and outcome-based approaches in the context of the urgent action required in response to climate change and the Sustainable Development Goals. This shift can pose both threats and opportunities to companies seeking to get access to a diversified investor base. The investment environment companies are faced with varies depending on the geographical context and the investment style of investors. In particular, the rise of passive investment – that is the replication of financial indices in the construction of fund portfolios – is an important tool for the integration of sophisticated environmental, social and governance (ESG) factors in investment strategies. The US, Europe, Asia-Pacific and Africa present different levels of maturity and strengths in the space of responsible investment, calling for ad-hoc responses from investee companies. Across all jurisdictions the challenge of effectively measuring the impact of responsible investment is one investors and policymakers alike are still grappling with. Paper prepared in the framework of the IAI-Eni Strategic Partnership, July 2021.
Topic:
Climate Change, International Political Economy, Foreign Direct Investment, and Sustainable Development Goals
Political Geography:
Global Focus

13. Lake Chad: Another Protracted Crisis in the Sahel or a Regional Exception?

Author:
Bernardo Venturi and Luca Barana
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Common narratives on the Lake Chad Basin often focus on the nexus between conflict, development and climate change. In particular, the Lake’s situation attracts international coverage due to its shrinking size and the threat of multiple crises emanating from environmental degradation. This framework appears useful for donors and local governments, but the feedback loops among climate change, social marginalisation and conflict are not as straightforward. The problem is that the dominance of this analytical framework calls for policy response tools that are not always adequate. In the security field, the role of the Multinational Joint Task Force has been growing, but a stronger push in the sphere of governance is needed in order for it to gain legitimacy and improve its effectiveness on the ground. In the meantime, the Lake Chad Basin Commission has adopted some key policy tools to manage the natural resources in the area sustainably, but these initial steps must be followed by greater investment from Commission member states to advance implementation. An integrated regional approach remains the best way forward to tackle these complex dynamics. Paper prepared in the framework of the project “Water diplomacy and culture of sustainability. The Chad Basin”.
Topic:
Climate Change, Energy Policy, Natural Resources, Water, and Regional Integration
Political Geography:
Africa, Nigeria, Chad, Sahel, and Niger

14. Natural Gas in South-east Asia: Key Trends and Long-term Outlook

Author:
Luca Franza and Beni Suryadi
Publication Date:
05-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Given the increasing gas demand and declining domestic supply, countries in South-east Asia are bracing themselves to become net gas importers and are studying ways to enhance their security of supply. LNG will be the preferred source of gas, thanks to its flexibility and widespread availability at competitive prices in global markets. However, concerns related to excessive gas import dependency might reduce appetite for additional gas usage in South-east Asia. This could mean that coal would have a larger role, which is bad news for climate change. Countries in the ASEAN region need policies to achieve balanced, reliable, secure and cost-effective energy supply, a pre-requisite for the region’s ambitious economic development plans. A combination of solid local policies, investment by international players in the region and stability in global gas markets would enable gas to play a positive role in South-east Asia, which is a fast-growing region and an increasingly important catalyst of global energy market developments. Paper prepared in the framework of the IAI-Eni Strategic Partnership, May 2021.
Topic:
Climate Change, Energy Policy, Natural Resources, Gas, and ASEAN
Political Geography:
Asia and Southeast Asia

15. G20, COP26 and the Climate Emergency: Insights from Italian Public Opinion

Author:
Margherita Bianchi and Giulia Gozzini
Publication Date:
11-2021
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
Climate change is increasingly understood as the defining challenge of our times. Multiple polls underscore the extent to which citizens and government elites are united in identifying the climate emergency as the primary threat to human wellbeing and development. While prescriptions to tackle the climate crisis may diverge, the pandemic has increased the imperative to make human development and economic growth more responsive to the environment and natural ecosystems. Amidst promises to “build back better” in the wake of Covid-19, much anticipation is understandably being directed at the COP26 summit in Glasgow, that began on 1 November, one day after the conclusion of the G20 Rome summit.
Topic:
Foreign Policy, Climate Change, Energy Policy, United Nations, Natural Resources, and Public Opinion
Political Geography:
Europe and Italy

16. Crowdsourcing for Climate-Smart Agriculture: Insights from the Bolivian Andes

Author:
Rafael Lindemann Taborga
Publication Date:
11-2021
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
The vast majority of family and smallholder farmers in developing countries do not have access to locally relevant weather forecasts, undermining their capacity to adapt to climate change. Anticipating climate related risks reduces farmers’ vulnerability as they can plan ahead and limit the damage caused by storms, extreme temperatures, pests and other weather-related events. A recent pilot experiment in the Bolivian Andes – run by a consortium of international and national non-profit organisations, research centres and Bolivia’s productive development bank – found that encouraging smallholder farmers to crowdsource agro-climatic information enhances the accuracy of local weather forecasts, increasing their adoption of climate-smart practices. As a cost-effective system, crowdsourcing can be harnessed to broaden the coverage of agro-climatic information services, while enhancing their local relevance by responding to actual needs. The basic principle of crowdsourcing is that of outsourcing a task traditionally performed by a designated agent to individuals, groups of people or a platform that share a common goal. Encouraging smallholder farmers to utilise technology to send reports from their farmlands fosters a sense of ownership and collaboration, thereby favouring forms of collective knowledge production and sharing.
Topic:
Agriculture, Climate Change, Energy Policy, Natural Resources, and Digital Policy
Political Geography:
Bolivia and United States of America

17. The Venezuelan Oil Industry Collapse: Economic, Social and Political Implications

Author:
Rafael Ramírez
Publication Date:
11-2021
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
Venezuela’s hydrocarbons industry has completely collapsed. Seven years of mismanagement and political purges, the dismantling of Petróleos de Venezuela S.A.’s (PDVSA) managerial structures and deviations in longstanding company policy implemented by the government of Nicolás Maduro since 2014 have undermined the sector and destabilised the national economy.
Topic:
Climate Change, Energy Policy, Oil, Natural Resources, Economy, and Industry
Political Geography:
Venezuela, North America, and United States of America

18. Reviving and Reorienting Growth after the Pandemic: The Role of Local Infrastructure Investments

Author:
Nicola Bilotta
Publication Date:
12-2021
Content Type:
Special Report
Institution:
Istituto Affari Internazionali
Abstract:
The last decade has witnessed a progressive change in what had long been considered global priorities for achieving growth. The global financial crisis of 2007–2008 and the following European sovereign debt crises of 2011–2012 have brought to light important pitfalls in the functioning of globalized financial markets. Trade and financial liberalization policies have at times caused severe strains in some communities, raising concerns over the effects of rapid increases in international integration. Environmental and social risks have come to the forefront of the policy debate. The COVID-19 pandemic has brought enormous challenges to what was the normal way of living. All these events have had far-reaching consequences on the global economy. Currently, the world is facing at least three major shocks that are affecting health (COVID-19), prosperity (the recession) and the planet (climate change). These have been chosen as the three keywords for Italy’s G20 Presidency. These shocks are different in nature and have very diverse effects across countries, regions and municipalities. This calls for differentiated and targeted responses that take into account the specific needs of individual communities.
Topic:
Climate Change, Infrastructure, G20, Economic Growth, Investment, Integration, and COVID-19
Political Geography:
Europe, India, Vietnam, Philippines, United States of America, and Congo

19. How Green is China’s Belt and Road Initiative?

Author:
Alice Politi
Publication Date:
04-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
China’s Belt and Road Initiative (BRI) has been described as the largest infrastructure project in history, affecting around 60 per cent of the global population. Whilst promoting a narrative of connectivity, growth and “win-win partnerships”, the project has received opposing assessments regarding its wider impact, particularly in the environmental domain.
Topic:
Climate Change, Infrastructure, Green Technology, and Belt and Road Initiative (BRI)
Political Geography:
China and Asia