Development of A Responsible Investment for Low Carbon Economy: Renewable Energy Responsible Investment Index and Conceptual Framework for MENA Region

Responding to climate change creates particular challenges for Middle East and North Africa (MENA) countries in terms of oil output and water scarcity, but also gives potential for new paths to sustainability. The low-carbon energy transition poses critical concerns for MENA oil and gas producers, particularly about the impact on their reliance on hydrocarbon earnings. Without adjustment, this would exacerbate macroeconomic imbalances and possibly jeopardise pre-existing social contracts. Politicians are attempting to promote a variety of renewable energy sources and implementation tactics in order to mitigate the adverse consequences of climate change. As a result, the development of an index capable of effectively measuring and benchmarking the overall sustainability and economics of a country becomes necessary. In reality, the index should be capable of reflecting a near-complete assessment of renewable energy's current and future conditions. Simultaneously, it should be capable of revealing critical ESG and economic aspects of the renewable energy business. The proposal aims to create a composite index, dubbed the Renewable Energy Responsible Investment Index (RERII). It is comprised of 19 nations and 22 distinct metrics. From 2010 to 2019, a trend in RERII is computed. The RERII suggested in this work may be utilised as a screening tool, a decision-making tool, a benchmarking tool, and a tool for guiding sustainable development.