Last month, Libya made two important environmental moves for its longer-term future in energy.
At the COP28 summit in December, Libya’s National Oil Corporation (NOC) launched its ‘Think Tomorrow’ environmental initiative. Back home, Libya also launched its National Strategy for Renewable Energies and Energy Efficiency 2023 – 2035.
Among the policies the NOC will seek to introduce under the ‘Think Tomorrow’ initiative, are a drastic reduction in gas flaring, a sizeable increase in the use of renewable energy at oil fields and the planting of one million trees by 2025 to absorb approximately 24,000 tons of CO2 annually.
And under the country’s new energy strategy, it will seek to organise and develop programmes related to renewable energy consumption. The strategies’ aims include fostering investment in the country’s renewable energy potential, increasing energy savings and efficiencies in systems and goods, and increasing the adoption of solar energy, particularly in water heating.
These two steps by Libya reflect the growing shift towards renewable energies and environment-oriented policies taking place globally.
As a hydrocarbon rich country, Libya will still be looking to increase hydrocarbon production in the short to medium term – the NOC’s five year strategy to increase oil production being a prime example of this.
However, there is a growing sense in the country of the need to move with the tide and prepare itself for the long term energy transition towards renewables. This was highlighted by the IMF’s consultation report on Libya in 2023, which advised the country to begin to diversify its economy away from traditional energy sources.
Indeed, the country has strong potential in renewables, most especially with solar power. The NOC and other bodies have already begun to take steps to develop this potential, and Libya is now starting to emerge as a key market for European energy needs having engaged with EU countries on renewable (and non-renewable) projects already. With its prime geographical location and resources, it has the potential to become a major supplier to Europe in both traditional and renewable energies.
Our team at Eltumi Partners specialise in energy and infrastructure projects. We track developments in these sectors in order to provide commercial legal support to businesses operating in the sector. Follow our LinkedIn page for ongoing updates and insight.