Chapter 13: Energy Resources, Local Content Policies and Economic Growth: The Case of Hydrocarbons Exploration in Greece

Energy policy and sector developments in Greece in the last decades reveal the government and investors' intentions to exploit the energy resources and production potential of the country. Developments regard renewable and hydrocarbon energy sources. Agreements with international companies come with economic terms attached and the prospect of related sectors' development, employment generation, research and innovation. Developments, particularly those related to hydrocarbons exploration, take place in times of climate change mitigation and adaptation and actions to ensure environmentally, socially, and economically sustainable development in line with the goals set out in the United Nations Agenda for 2030 and the European Green Deal. Given these challenges, the design and implementation of timely policies that can promote local supply capacity appear to be of primary importance. This chapter discusses the challenges and opportunities of designing and implementing local content policies with the intention to derive useful policy considerations. The discussion draws from the latest developments with hydrocarbons exploration and production activities in Greece and from the recent relevant to local content literature. The analysis concludes that in the face of climate action, rapid technological innovation, and the high capital intensity that characterize the sector, knowledge transfer, and education upgrade emerge as important factors of achieving sustainable growth through local content policies.