MIDDLE EAST and CARBON CREDITS

An overwhelming majority of primary CDM credits now being traded or used for compliance are coming from only two countries – China and India. Though these two giants still present attractive opportunities for carbon investment, the geographical concentration of such a large amount of carbon is a key concern for those who need to buy this booming new commodity. China’s unofficial price floor, and uncertainties with projects in India, are only some of the major issues that project developers and their clients face in trying to source for credits to fulfill regulatory obligations and CSR targets in their countries of operation.

A unique combination of qualities makes the Middle East and North Africa a potentially lucrative new region for hosting CDM projects.

First, though the countries in the region are not the world’s heaviest emitters, due to inexpensive energy they house sizeable energy-intensive and carbon-intensive industries such as aluminum production, not to mention oil and gas.

Second, the region has some of the world’s wealthiest institutional and individual investors who can help with financing suitable projects for mitigating climate change. Attesting to this fact are massive projects completed or now underway for record-breaking 7-star accommodation in Dubai, buildings that generate their own energy in Bahrain, and even a carbon-neutral city in Abu Dhabi.

Third, interest is now rising steadily among the region’s governments, investors and local industry leaders in the benefits of projects and investment for sustainability.

Now is the time to catch that interest and build your business case with local stakeholders, get the inside track speaking with regulators about current trends and outlook, and learn effective strategies for dealing with the complex local landscape from project participants themselves.