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European Union, UNIDO, and MNE to boost industry competitiveness in Palestine through sustainable energy solutions

Ramallah, State of Palestine, with connection to Gaza Strip via video conference - The UNIDO, the European Union, and the Ministry of National Economy join forces to reduce Greenhouse Gas (GHG) emissions and improve energy security and competitiveness in the industrial sector in Palestine through sustainable energy solutions.

The United Nations Industrial Development Organization (UNIDO) and the Office of the European Union Representative (EUREP) in Jerusalem in partnership with the Ministry of National Economy in Palestine (MoNE) launched today a project for ‘Promoting an Energy Sustainable Palestinian Industries – MOUSTADAMA’ following the recent agreement signed between the European Union and UNIDO, whereby the EU has provided €6 million for the project.

The MOUSTADAMA Program aims to set the foundations for a conducive renewable energy and energy efficiency environment in the industrial sector by developing policy, legal and regulatory framework and supporting relevant stakeholders to enforce operational guidelines for a net metering scheme. Complementary measures will address simultaneously both the supply and the demand side for renewable energy and energy efficiency by harnessing the transfer and development of new capacities in terms of design, installation, operation and maintenance. The MOUSTADAMA Program will be stimulating awareness of different target groups on the opportunities available in the development of a green economy and/or in the adoption production models embracing sustainable energy technologies. 

The cooperation between UNIDO and the European Union has been essential for maximizing the potential of international industrial cooperation for eliminating poverty through job creation in the real economy and for accelerating the global transition towards low-carbon development.

"The European Union works with the Palestinian Authority, private sector and other relevant Palestinian organizations to develop renewable and efficient energy solutions to address the local demand for energy and contribute to sustainable development goals," said the Acting European Union Representative Tomas Niklasson. "We work side by side with Palestinians to build an independent economy for a future Palestinian State. An independent economy is a significant pillar to deliver security and prosperity for Palestinians, and to ensure a better future for the generations to come", he added.

A platform of dialogue between SMEs, research centers and universities is expected to further support the development process by promoting linkages, dialogue and exchanges on Research and Development and fostering innovation and entrepreneurship. The Program will ultimately contribute to creating a new market for and within the Palestinian industry, reducing energy dependence through development of local energy solutions, promoting innovations, encouraging entrepreneurship and creating employment opportunities.

The energy context in Palestine is complex as it is almost completely dependent on energy imports combined with the high cost of domestic production leading to a significant gap in energy supply and demand. Minister Khaled OSAILY of the Ministry of National Economy in Palestine stressed that “energy security is considered to be essential for addressing not only humanitarian needs and providing basic services, including water and healthcare, in Palestine, but is also key for enabling sustained economic growth and supporting businesses to operate effectively and profitably”. Minister Osaily continued saying “Without energy security, the Palestinian economy will not be able to transition from donor dependent to private sector-led economic growth”.

The MOUSTADAMA Program will apply the UNIDO’s approach to drive Palestine towards energy security and independence through market transformation, leading to wide-scale renewable energy and energy efficiency adoption and business innovation thus promoting green job creation in the energy sector. “The Program will support policy and institutional framework for energy efficiency and renewable energy deployment, demonstrate the benefits of locally-driven, innovative sustainable energy solutions, and facilitate scaling-up of these solutions in the industrial sector” said UNIDO Energy Department Director, Tareq EMTAIRAH. “The Program will also contribute to global environmental benefits by leading to reductions in greenhouse gas emissions”, further noted Director Emtairah.

This Program reinforces the partnership between the European Union, Palestinian Government and UNIDO in a direct response to the national priorities outlined in the country’s National Policy Agenda 2017-2022 and the supporting European Joint Strategy, as well as the UN Development Assistance Framework (UNDAF 2018-2022).

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