The reference scenario, excluding climate policies, describes the deepening of Algeria''s reliance on hydrocarbon resources which poses an environmental challenge and conflicts with the principles of SDGs 7 (energy) and 13 (climate).
Enforcing Algeria''s policy targets on renewable and hydrogen leads to a more diversified energy supply, aligning with SDG 7, but without reducing sufficiently the greenhouse gas emissions, thus not fully aligning with SDG 13.
The addition of a climate target to the current policy targets raises concerns about the feasibility of achieving CO2 emissions reduction and meeting the gas domestic demand and export requirements.
Algeria, historically rich in hydrocarbons, has relied heavily on these abundant and low-cost resources for development, leading to significant carbon emissions and environmental issues. With growing climate awareness, there is increased attention on transitioning to sustainable energy sources.
The Sustainable Development Goals (SDGs) framework established by the United Nations (UN) appears to be particularly relevant for guiding the development paths of emerging countries while addressing their multiple socioeconomic and environmental challenges. However, integrating SDGs into public policy, particularly long-term energy planning, is challenging due to the interlinkages and conflicts between various SDGs and inherent uncertainties.
Before 1958, Algeria''s economy was agrarian, but the establishment of its national oil company Sonatrach in 1963 marked a shift to oil and gas production, leading to OPEC membership in 1969 (Mekideche 2009).
In the 2000s, Algeria continued liberalization, ending the state monopoly on hydrocarbons in 2001 (Akacem 2004). Despite a surge in oil prices benefiting the state budget, economic diversification remained elusive. From 2000 to 2014, over 65% of the budget and 97% of exports were still tied to hydrocarbons, mainly used for sustaining subsidies (Safir 2019).
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