Providing the Evidence for Inclusive Energy Transition Financing in the MENA Private Sector

Evidencing the design of future sustainable energy efficiency investment vehicles

  • Client

    International Development Research Center

  • Year

    2024-2027

  • Region
    • Middle East and North Africa (MENA)
  • Services
    • Policy, Regulatory and Institutional Frameworks
    • Strategies and Action Plans
    • Innovative Business Models for Energy Efficiency Projects
    • Integration of Environmental, Gender Equality and Social Inclusion Dimensions
    • Capacity Building
  • Countries

    Egypt, Morocco, Tunisia

  • Sectors
    • Micro, Small & Medium Enterprises (MSMEs)
    • Commercial and Residential
    • Governments and Public Services
Econoler

Across the Middle East and North Africa, energy efficiency is widely recognized as a strategic priority, yet investment continues to fall short of its potential. In Egypt, Morocco, and Tunisia, private-sector actors — particularly small and medium-sized enterprises — face persistent barriers to accessing the financing needed to adopt energy-saving technologies. To help close this gap, Econoler is leading a multi-country research initiative funded by Canada’s International Development Research Centre (IDRC), designed to build the evidence, partnerships, and inclusive financing models required to accelerate a low-carbon transition in the region.

Building the evidence base for a low-carbon, inclusive energy future

The project aims to analyze energy efficiency markets in Egypt, Morocco, and Tunisia, identify inclusive financing mechanisms, and better understand the barriers and opportunities shaping private-sector investment. It seeks to strengthen the evidence base, support women’s and youth’s participation, and inform scalable, gender-responsive business models and policies enabling low-carbon development across the MENA region — an ambition that reflects the value of Innovation at the core of Econoler’s mission.

The Mandate

Our experts identify the main barriers to private sector investment in energy efficiency through a regional and gender-responsive lens, assess market potential, and develop innovative financing mechanisms to mobilize private capital. In collaboration with national research teams, Econoler also strengthens regional capacity by mentoring young researchers, facilitating knowledge exchange, and supporting the development and publication of energy efficiency research.

A region rich in potential, held back by financing gaps

Egypt, Morocco, and Tunisia share strong renewable energy potential alongside growing energy demand driven by urbanization, industrialization, and population growth. At the same time, their energy systems remain heavily influenced by fossil fuels and face structural constraints, including limited access to financing, regulatory barriers, and infrastructure limitations.

The private sector, and especially micro, small, and medium-sized enterprises (MSMEs), plays a critical role in economic activity and innovation but often lacks the financial and institutional support needed to scale energy efficiency solutions. Persistent socio-economic and gender inequalities further affect access to energy-related opportunities. This combination of high renewable potential, rising energy needs, and persistent investment and inclusion gaps makes the three countries highly significant contexts for advancing innovative and inclusive energy efficiency financing models.

Creating value across the energy financing ecosystem

The project generates value for a broad ecosystem: students, universities, the energy financing sector, and SMEs across the three countries.

For universities and students, it enhances research skills, provides hands-on experience with real-world energy efficiency challenges, and increases academic visibility through publications and conferences. For SMEs and the broader energy financing ecosystem, it produces evidence-based insights on market barriers, risks, and opportunities, enabling better-informed investment decisions. Crucially, the research highlights the best design of more inclusive and accessible financing mechanisms — particularly for women and youth-led enterprises — contributing to improved access to capital. Over time, this is expected to accelerate the adoption of energy efficiency technologies, leading to cost savings, greater business competitiveness, and reduced greenhouse gas emissions.

Related publication
Energy Efficiency in Egypt’s Private Sector: Barriers and Drivers
Read the article

A rigorous, multi-country approach grounded in local realities

The project applies a coordinated, multi-country research approach that combines market analysis, primary data collection, and capacity building, all viewed through a gender equality, disability, and social inclusion (GEDSI) lens. As project coordinator, Econoler acts as point of contact for the IDRC and national level research teams based in the three counties: the National Engineering School of Tunis (ENIT) in Tunisia, the Institute for Research in Solar Energy and New Energies (IRESEN) in Morocco, and the American University in Cairo (AUC) in Egypt.

The work is structured around four core lines of activity:

  1. Identifying the main barriers to the implementation of energy efficiency measures in the private sector, taking into account gender equality and inclusiveness
  2. Undertaking analyses of the energy efficiency market to demonstrate its relevance to the private sector
  3. Proposing innovative financing options and conditions to mobilize private-sector investment in energy and resource efficiency measures
  4. Strengthening the capacity of target countries through research and mentoring, notably by supporting young researchers — post-doctorates, PhDs, and other postgraduate students — through peer-to-peer knowledge transfers

Primary evidence is gathered through qualitative data collection, including focus groups, interviews, and surveys conducted at the national level by each team, complemented by robust stakeholder mapping in each country. By examining the barriers to energy efficiency and renewable energy investments from both regional and gender-based perspectives, this methodology is designed to produce findings that are scientifically robust, comparable across countries, and directly relevant to the design of future investment vehicles in the sustainable energy transition.

Results to date: Early momentum, tangible progress on the ground

Since its launch in 2024, the project has built strong momentum across the three participating countries. Key activities have included:

  • Three national kick-off conferences organized with the partner universities in their respective countries, reaching public and private stakeholders
  • Participation in international research collaboration conferences in Kenya and South Africa, including the production of scientific posters and presentations of research
  • Robust stakeholder mapping at the national level by all three teams
  • The launch and completion of preliminary qualitative data collection through focus groups, interviews, and surveys, conducted by the three teams in collaboration with Econoler and IDRC
  • Preliminary research on market barriers to energy efficiency, with a focus on gender and social inclusion
  • Multiple online trainings and brown-bag seminars, including on Super ESCO models and GEDSI in the energy and finance sectors
  • The production of knowledge-sharing materials and the training and capacitation of young graduate and postgraduate researchers on the gendered challenges of energy efficiency financing in the MENA region

Taken together, these activities have laid a solid foundation of regional collaboration and field data from which the project’s first substantive insights are now emerging.

What the early evidence is already revealing

Several consistent preliminary findings have emerged. Energy efficiency investments in the MENA private sector remain constrained by market barriers, limited access to tailored financing solutions, and weak technical and institutional capacities. Existing financing instruments are not adequately aligned with the needs of energy efficiency projects, particularly for private-sector actors. Findings also underline that energy efficiency financing must better integrate gender equality and inclusion considerations, including access to business opportunities for women and the specific needs of their enterprises.

Across all three countries, energy efficiency is consistently identified as a priority sector within Nationally Determined Contributions (NDCs), with high potential to contribute to GHG reductions and energy security — yet this potential is not matched by investment flows or the scale of implementation. Together, these early results confirm the value of a project capable of moving beyond general findings to capture the specifics of each national context, and also enabling the three countries to learn from one another and to build bridges based on their shared challenges.

A lasting regional partnership shaping the future of EE financing

The initiative brings together three leading research institutions within a collaborative structure coordinated by Econoler: The National Engineering School of Tunis (ENIT) in Tunisia, the Institute for Research in Solar Energy and New Energies (IRESEN) in Morocco, and the American University in Cairo (AUC) in Egypt. Each institution contributes country-level analysis and academic expertise, while IDRC provides strategic oversight and funding — ensuring that findings are both scientifically robust and policy relevant.

The teams are now preparing to publish their first research papers in peer-reviewed, open-access publications and are actively presenting their work at scientific conferences. A cross-team event is planned for the fall, followed by a final event in spring 2027. Beyond its immediate research outcomes, the initiative is establishing lasting, long-term collaboration among these institutions and their researchers across the region — fostering more inclusive and diverse discussions on energy efficiency financing, and helping lay the groundwork for a more equitable and sustainable energy transition in the MENA region.

To learn more about GESI dimensions