Luiza Rocha is a PhD Candidate in Law at NOVA School of Law and a Research Associate at the NOVA Knowlegde Centre for Business, Human Rights and the Environment
This contribution was originally published on the blog series of the NEAR-ER Network (Network on Europe-Africa Relations, Education and Research)
Morocco and Egypt’s Partnership with the EU for a Climate-Conscious Era
During the COP27 Climate Conference in Sharm El-Sheikh, Egypt (2022), the European Union (EU) and its Member States showed their intentions to strengthen long-term cooperation on the clean energy transition with North Africa. The EU signed a Memorandum of Understanding on a strategic partnership for renewable hydrogen with Egypt, aiming to reduce emissions, enhance energy security and foster sustainable economic growth for both parties. Additionally, France, Germany, Portugal, and Spain signed a memorandum of understanding with Morocco to facilitate cross-border electricity trade and promote clean and environmentally friendly energy exchanges.
These alliances spurred ambitious projects and efforts to drive innovation, expand infrastructure, and foster international cooperation in the renewable energy sector. For instance, in March 2025, the Egyptian Ministry of Investment and Foreign Trade announced a pioneering green hydrogen project set to take place in South Sinai in 2030, expected to produce up to 400,000 tons of green hydrogen annually. Similarly, privately-led green hydrogen projects in Egypt, focused on solar and wind energy generation, are projected to begin operations near the Suez Canal by 2029, accelerating the development of green energy manufacturing technologies in the country. In Morocco, large-scale green hydrogen production is also expected to help countries achieve climate targets and energy transition.
The rapid increase in investment across the region signals that North Africa is already becoming a focal point for green energy. In the coming years, renewable energy will be at the heart of North Africa’s economic and sustainable transformation, supporting its future growth.
The Double-Edged Sword of Green Energy Transition in North Africa
Transitioning to renewable energy is crucial for staying within safe planetary boundaries. It helps reduce greenhouse gas emissions, slow global warming, and preserve ecosystems, thereby lowering the risk of irreversible environmental change. Beyond its environmental significance, the green transition is also fundamental to upholding human rights, notably the right to a safe, clean, and sustainable environment, along with interconnected rights such as access to health, water, food and to a liveable planet.
However, not all renewable energy initiatives are inherently just or universally beneficial. In some cases, particularly in transnational contexts, renewable energy projects have been linked to social exclusion, greenwashing, rising energy poverty levels, and the reinforcement of historical patterns of inequality and exploitation.
The global climate crisis is not simply an environmental emergency of the present, it is deeply rooted in historical patterns and the legacy of colonialism and unequal economic development. The industrialisation of the Global North, powered largely by the extraction of labour, land, and resources from colonised regions, remains the primary driver of today’s cumulative greenhouse gas emissions.
In this regard, European green energy investments in North Africa have come under increasing scrutiny. In particular, a Greenpeace report from early 2025 critically examines green energy projects in Morocco and Egypt, revealing that many of these investments risk perpetuating neo-extractive dynamics. Rather than fostering mutual benefit, these initiatives often reinforce asymmetric power dynamics between the Global North and Global South: serving European energy markets while externalising the environmental and social costs of green transition. Meanwhile, local economies, which continue to rely on fossil fuels for domestic consumption, see limited economic returns and minimal energy access improvements. The report highlighted two case studies from Egypt and Morocco, where local communities experienced environmental degradation, resource depletion, economic dependency and inequality, energy insecurity, as well as gender and social dislocation due to green transition operations.
These patterns of “green extractivism” in Morocco and Egypt raise urgent questions about the accountability of both corporate and state actors involved in transnational renewable energy projects.
Looking Ahead: Business and Human Rights in EU-North Africa Green Energy Partnerships
The growing awareness among researchers, policymakers, and government representatives about the complex social and environmental costs of multinational corporate operations is shaping the development of legal and policy frameworks worldwide. Increasingly, these frameworks reflect the need to address the broader human rights and environmental impacts of corporate activities and the role of businesses in addressing climate change.
Several legislative developments signal this shift towards greater corporate accountability. France’s Duty of Vigilance, Germany’s Supply Chain Due Diligence Act, and the EU Corporate Sustainability Due Diligence Directive (CS3D) underscore the move towards embedding human rights and environmental due diligence into business operations, including those tied to transnational green energy projects.
At the same time, North African states are beginning to incorporate Business and Human Rights (BHR) principles in their domestic legal and policy landscapes. Morocco, for instance, included a chapter on BHR in its 2018-2022 National Action Plan (NAP) for Democracy and Human Rights, laying the groundwork for measures to ensure responsible business conduct. Likewise, Tunisia is in the process of elaborating its first NAP on BHR. While Egypt has yet to formally adopt a BHR framework, it hasinitiated dialogues aimed at enhancing cooperation and institutional alignment for a more sustainable future.
These developments open doors for a global shift in economic relations, paving the way to move away from extractive and asymmetrical models towards more equitable relations. While this transformation may not materialise overnight, it is increasingly likely as climate pressures intensify and the limitations of resource-driven growth become more apparent.
From a Business and Human Rights perspective, the future of North Africa–Europe green energy cooperation holds the potential for more balanced and mutually beneficial relations, provided that robust legal frameworks grounded in international human rights law and environmental justice continue to advance and are embedded into these partnerships. As the global economy pivots towards decarbonization and sustainability, a critical challenge remains: ensuring that renewable energy projects uphold the rights of local communities, protect the environment, and prevent the reproduction of colonial or neo-extractive dynamics, thereby contributing to a truly just energy transition.
Suggested citation: L. Rocha ‘The Future of North Africa-Europe Green Energy Alliances from a Business and Human Rights Perspective‘, Nova Centre on Business, Human Rights and the Environment Blog, 25 August 2025