The Dubai Initiative -The Development of a Gulf Carbon Platform: Mapping out the Gulf Cooperation Council Carbon Exchange

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[pdf_attachment file=”1″ name=”optional file nameThe Dubai Initiative (The Development of a Gulf Carbon Platform: Mapping out the Gulf Cooperation Council Carbon Exchange)”]
The countries of the Gulf Cooperation Council (GCC) have some of the highest greenhouse gas emissions rates per capita in the world. This paper argues that in spite of the extremely high greenhouse gas (GHG) emissions rates, GCC members will benefit economically, environmentally and geopolitically by constructing a harmonized pan-GCC carbon trading platform that will allow them to make cost-efficient decisions about greenhouse gas abatement. A thorough analysis is undertaken to determine which GHG abatement mechanism would be the best suited for the GCC, with maximum cost and environmental benefits. Based on the unique characteristics of the GCC members, a pan-GCC cap-and-trade framework is suggested. Optimally, policy makers would institute it in a phased, voluntary introduction, to be gradually replaced by a mandatory scheme. If the GCC countries implement such a system, they would be able to rationalize their energy usage for domestic power production, and conserve their oil and gas production for future generations

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