Acknowledgments xv

About the Authors xvii

Executive Summary xix

Abbreviations xxvii

1 The Impact of Temperature Changes on MENAAP’s Firms and Adaptation Policies 1

Introduction 1

A Sluggish Private Sector 3

Significant Effects of Heat on Firms’ Performance 4

Technology Adoption as Heat Adaptation 16

How Policies can Alleviate the Harmful Effects of Climate Evolution on Firms 19

Notes 20

References 22

2 Impacts of European Climate Mitigation Policies on MENAAP’s Trade and Foreign Direct Investment 25

Introduction 25

The EU Carbon Border Adjustment Mechanism 26

CGE Modeling of CBAM Impacts 36

CGE Modeling Results 40

Impacts on FDI Inflows 45

Trade and FDI Vulnerability, by Country 49

Notes 56

References 58

3 Building Resilience and Seizing Economic

Opportunities 61

Introduction 61

Financing the Adoption of Greener Technologies 63

Enhancing The Business Environment to Support Adaptation 68

Fostering Green Competitiveness to Sustain Access to European Markets 72

Economic Opportunities Arising From More Sustainable Economies 80

Notes 85

References 87