Science shows that Mother Earth’s atmosphere is blanketed with carbon dioxide; the most abundant, man-generated and heat-trapping particle. For this reason, carbon markets have emerged, thus, allowing individual and/or a group of countries to co-manage the shared environment.
While environmental degradation conceives of no political borders, environmental agreements are politically and economically motivated. This paper proposes a hypothetical carbon trading scheme in the Gulf Cooperation Council (GCC): A region with one of the highest per-capita carbon consumption and carbon footprints.
The vitality of this study, according to the author, arises from the nature of energy production in the GCC, which relies almost exclusively on non-renewable, non-green resources. Meanwhile, the oil production in the GCC is so huge, that a prospective carbon market would generate very strong profits to finance the much needed green energy scheme.
The paper zooms back at an earlier historical point where a carbon abatement project was first established in this region in 2007-2009. Next, the paper proposes a carbon trading scheme by utilizing the cap-and-trade (CaT) strategy. To do so, each country should adopt carbon controlling and monitoring mechanisms, such as carbon capture and storage (CCS).
The following section examines the advantages and disadvantages of each mechanism with regards to the GCC. Next, the author offers lessons learned from the European Union (EU) carbon trade mechanisms, which is the oldest market of the kind.
The paper recommends:
the establishment of comprehensive monitoring, evaluation, reporting and verification (MERV) frameworks
the establishment of a supportive institutional system, such as laws and regulations to ensure the integrity of data collection in each individual country