Booz & Company

Print this itemEmail this item 12/23/09
Climate Change after the Kyoto Protocol: Implications for the MENA Region


The need to combat climate change has moved to the top of the global agenda. ‎As world leaders work to provide a successor agreement to the aging Kyoto ‎Protocol, this is a critical opportunity for forward-looking leaders in the MENA ‎region to start preparing national strategies for the low-carbon future and to ‎formulate their approach to providing input on the shape of these global ‎agreements. ‎

The MENA region has a number of priorities that should factor into its ‎contributions to climate change policy. First, it must take into account its need to ‎continue along their economic trajectory: Many activities that are crucial to a ‎country’s modernization—the building of infrastructure, for instance—can be ‎carbon-intensive. Additionally, of course, climate change and the world’s efforts ‎to combat it present risks for MENA countries with economies that rely on ‎traditional fossil fuels. Finally, there is a risk that protectionist approaches to ‎international trade will emerge as a way to force nations to adopt low-carbon ‎practices. Some advanced-economy nations subject to stringent emissions rules ‎have suggested that they may impose carbon tariffs to protect sectors and ‎companies facing competition from nations or regions without restrictions on ‎emissions. The implementation of such tariffs could significantly limit or devalue ‎exports from carbon-intensive economies, damaging economic development in ‎these nations.‎

But in addition to avoiding the negative impacts that could result from changes ‎in climate change policy, MENA countries can also seek out the benefits. For ‎instance, the clean development mechanism established in the Kyoto Protocol ‎gives MENA countries the opportunity to earn emission reduction credits and ‎sell them to advanced nations, generating substantial funds. Any new climate ‎treaty is also likely to include a centralized funding mechanism, which could be a ‎significant source of capital for policies, programs, and initiatives that contribute ‎to the sustainable development of the region.‎

Apart from the financial aspects of any emissions reductions, the rapid rollout of ‎low-carbon technologies and best practices, mostly from advanced economies, ‎will also play a major role in reducing emissions. The MENA region can ‎capitalize on this influx of new technologies to develop its own capabilities and ‎meet its goal of becoming a technology exporter in some areas. Finally, MENA ‎countries can use their emissions reductions to generate international goodwill ‎and political capital and help other initiatives of national importance. ‎

All of these issues mean that MENA countries, to the greatest extent possible, ‎should participate in the discussions that will create a new framework to ‎alleviate climate change. Their governments should understand what the coming ‎changes mean for them and devise appropriate strategies and initiatives ‎accordingly. In order for the MENA region to benefit from the development of a ‎new framework for global climate policy, its governments need to be certain that ‎they have a seat at the table—and that they are making efforts in good faith in ‎their own countries. ‎

As part of the new architecture, each MENA country will need to prepare a ‎national low-carbon development strategy. Governments must first understand ‎where their countries’ emissions are coming from, and create projections of how ‎much those emissions will grow over time if they continue with business as ‎usual. The next step is to determine where they can reduce emissions, assess the ‎feasibility and practicality of the abatement opportunities, and prioritize them. ‎Finally, they should identify the appropriate institutional settings for ‎implementing the nation’s low-carbon development strategy, including the use ‎of international funding.‎

In the years since the Kyoto Protocol was developed, the MENA region has made ‎significant economic advances. In the coming years, MENA countries will face ‎the challenge of ensuring the sustainability of this growth for future generations. ‎In this context, they have a unique opportunity between COP15 in 2009 and ‎COP16 in 2010 to make their voices heard and start to prepare for their low-‎carbon future. They should not let this opportunity pass them by.
 

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