Carbon Market Opportunities in Southern Mediterranean Countries
MEDPRO Technical Paper No. 8 March 2012
59 Pages Posted: 28 Mar 2012 Last revised: 24 Jun 2013
Date Written: March 16, 2012
To date, Southern Mediterranean countries have hosted a limited number of projects under the Clean Development Mechanism (CDM). There are three challenges to the participation of middle-income countries in future carbon markets: the limited size of future demand for offsets or credits; restrictions on the use of CDM credits in Phase III of the EU Emissions Trading Scheme; and the lack of prompt preparation for the start of new market-based mechanisms. This study examines existing and emerging activities in Southern Mediterranean countries that could fit into new market-based mechanisms. It explores options for the evolution of mechanisms and discusses the merits of post-2012 carbon funds in bridging the gap between the end of the first commitment period of the Kyoto Protocol and the entry into force of a new international agreement.
Keywords: carbon market, Middle East, North Africa, MENA, Clean Development Mechanism, CDM, EU, Emissions Trading Scheme, Kyoto Protocol, carbon funds
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