This Emirates Diplomatic Academy Insight, titled ‘Leveraging Market Mechanisms for Climate Change Mitigation in the UAE and the Gulf Region’, provides an overview of recent developments around international market mechanisms for greenhouse gas emission reductions and analyses their relevance for GCC countries, in particular the UAE. The paper argues that there is a need to better understand what global carbon pricing and market trends could mean for the region’s competitiveness going forward but also to explore related opportunities. This understanding will enable GCC countries to actively participate in the ongoing discussions on international carbon market mechanisms, based on lessons learned to date.
The Insight addresses the following questions:
* What are the key trends of relevance for the UAE in international carbon pricing and markets, and why is engaging with the issue important?
* What are the main lessons from the UAE’s experience with the Clean Development Mechanism?
* What potential opportunities and challenges are there in relation to the Paris Mechanisms?
* How do international aviation emissions relate to market mechanisms under the UNFCCC, and what could be some of the key areas of focus for the UAE and other participating countries?
The paper is based on discussions at a carbon market stakeholder workshop organised by the EDA’s research programme on Energy, Climate Change and Sustainable Development in January 2018. It provides a summary of the workshop presentations by lead speaker Dr Axel Michaelowa and some of the key points made in the discussions.
Please note that EDA’s research outputs do not necessarily represent the views of the UAE government or EDA event participants, but seek to address issues that foreign-policy experts and practitioners both in the UAE and worldwide will find informative and relevant.