Engaging with carbon markets: the Libya case

Climate change and the emerging carbon-constrained economy of the 21st Century present new challenges and opportunities for countries of the Middle East and North Africa. This paper discusses the potential for Libya to participate in the Clean Development Mechanism (CDM), the main flexibility mechanism of the Kyoto Protocol, which is designed to reduce greenhouse gas emissions and promote sustainable development. The paper considers the interaction of Libya's history and socio-cultural characteristics with global policy dynamics and economic forces. Libya's geography presents considerable potential in terms of CDM project opportunities, yet key developments would be required before these could be exploited. The nature of Libya's political system and social structures suggest that these developments are unlikely to occur while the Qadhafi regime endures, and therefore that Libya will not be able to engage successfully with the CDM and international mitigation activities in the short term. However, the CDM represents a means to implement capacity building and technical development programs, which will be integral components of reconstruction strategy in the aftermath of the dramatic events of early 2011. Keywords: Libyan energy policy; Clean Development Mechanism; political ecology; socio-economic reform; Kyoto Protocol