Energy Policy and Environmental Security Issues in Algeria (2020-2025)

Abstract

Algeria’s energy policy is based on a two-pronged approach that combines continued reliance on fossil fuels—which account for 93.6% of exports and 50% of the budget—with the development of energy alternatives such as solar power and green hydrogen, aiming to generate 15 gigawatts of renewable energy by 2035. However, this transition has not yet translated into improved environmental security indicators, as greenhouse gas emissions continue to rise, reaching approximately 295 million metric tons of carbon dioxide equivalent by 2025, while the ecological deficit gap is widening to 240%, meaning that Algeria’s ecological footprint exceeds its ecological capacity by more than double. The study indicates that the primary driver of the energy transition remains economic (securing gas for export) rather than environmental, which explains why natural gas continues to dominate the electricity mix at 97% despite promising projects. Structural challenges—including annual growth in domestic energy demand of 2%, continued fossil fuel subsidies, and rentier dependence on hydrocarbon revenues—constitute major obstacles to achieving the desired environmental security. Consequently, the current energy policy holds significant long-term environmental potential, but it has not yet succeeded in reversing the current trend of environmental degradation or decoupling economic growth from rising emissions