Mediterranean energy dynamics are undergoing a revolution as the region’s immense renewables potential begins to be tapped. This energy transition can help unlock opportunities across Europe and the Mediterranean, addressing industrial competitiveness, energy security and climate risks while boosting job creation, regional stability and economic resilience. The key to achieving these benefits: delivering a well-managed transition that is mutually agreed and provides an innovative vision for regional cooperation.
It is crucial that the EU sets the right course in its upcoming strategies: the New Pact for the Mediterranean and the Trans-Mediterranean Energy and Clean Tech Cooperation Initiative.
Our briefing sets out recommendations for the EU as it undertakes its strategic refresh of Mediterranean policy. These recommendations were developed with input from the Mediterranean Alliance of Think Tanks on Climate Change and other experts/government representatives from civil society and industry in Europe and the MENA region.
A new Mediterranean energy landscape
The Mediterranean energy landscape is undergoing a major transformation. In Europe, the drive to decarbonise and reduce dependence on Russian fossil fuels is reshaping energy needs and partnerships. The 2021–23 gas crisis exposed the risks of volatile gas prices. Meanwhile, countries across the Mediterranean are increasingly tapping into the region’s vast clean energy potential.
Stronger EU–Mediterranean energy ties offer benefits beyond security of supply and export opportunities. Electricity interconnectors can boost regional energy security, while clean energy-powered industrial growth can create jobs and new trans-Mediterranean supply chains. As EU demand for fossil fuels falls, clean energy partnerships can help sustain long-term regional stability as fossil fuel-producing countries in the region are hit by declining EU demand.
The EU is currently developing a New Pact for the Mediterranean, expected by late 2025, as well as a Trans-Mediterranean Energy and Clean Tech Cooperation Initiative, planned for early 2026. Getting these strategies right can be an opportunity to kick-start a new, futureproofed era of Mediterranean energy cooperation.
What are the key components of the EU’s policy toolbox for more effective Mediterranean energy diplomacy? Our recommendations:
- Just energy transition as a central principle. The EU’s approach should centre on the potential for a just energy transition to help deliver the EU’s geopolitical, security and economic goals in the Mediterranean. Achieving this requires full transparency on future EU energy demand, cooperation on boosting energy efficiency, and tailored support for countries shifting away from fossil fuels.
- Support for a regional renewable energy target. The EU should back a Mediterranean-wide renewable energy target, like the TeraMed goal aiming for 1TW of renewable generation capacity by 2030. The EU can use this to drive large-scale public and private investment in renewables.
- Energy interconnectedness for security. The EU should primarily think of energy interconnectedness as a way to boost security and flexibility, rather than as a means simply to extract renewable energy from partner countries. A more connected grid would improve resilience, lower costs and enhance energy security across the region.
- Linking renewables to industry and jobs. Renewable deployment should support industrial growth and local value creation in Southern Mediterranean partner countries. This includes supporting clean industry to maximise local benefits and build competitive pan-Mediterranean supply chains.
- Financing the transition. The EU needs to mobilise its full toolkit to bring in financing for Mediterranean energy transition. Beyond new financing, this can include raising the visibility of existing European funding to implementers and assisting partner countries to mobilise domestic financing.
How can the EU use its tools to create region-wide benefits? Our recommendations:
- Pan-Mediterranean vision. As well as strengthening bilateral partnerships, the EU should establish a region-wide vision for the Mediterranean, backed by a stronger multilateral dimension. This includes actively co-creating the New Pact with stakeholders from partner countries, reinforcing South-South cooperation and exploring EU trilateral cooperation with regional actors. At an EU level, the Council should empower the Commission through a Council Decision to lead EU-wide delivery by bringing coherence between EU and Member State visions and resources.
- Climate at the heart of the strategy. Climate must be central to the EU’s approach, recognising it as key to long-term security, stability and development rather than as a sectoral issue. The strategy should include a component on climate adaptation and harness the economic and development potential of the energy transition – drawing on lessons from the EU Green Deal and the emerging Clean Industrial Deal.
Read the full briefing here.
This briefing is a joint publication from E3G and ECCO. Lorena Stella Martini is a Senior Policy Advisor at ECCO, working on Italian and EU foreign policy.
