Gulf must take leading carbon trading role

The Gulf States, which have one of the highest carbon footprints per capita in the world, are in a unique position to combat global warming by tapping the lucrative carbon trading market and introducing carbon caps, enviromental expert Rod Beckstom told attendees on Monday at the Dubai International Financial Centre (DIFC) Week.

Global warming is the most significant political and environmental challenge facing the world today, but a solution for major polluters in the form of carbon trading, Rod Beckstrom told attendees at the third day of the prestigious business forum in the Gulf Emirate.

"There is a green revolution going on . . . carbon neutrality is where it's at. And it's good for the environment," said Beckstrom, chairman and CEO of TWIKI.NET, and a co-founder of The Environmental Markets Network.

"Imposing binding carbon caps and setting local carbon allocations for companies is the most natural way to develop a liquid carbon market. This way you have buyers as well as sellers of credits," he said.

As the major financial centre in the region, Dubai and the DIFC are perfectly positioned to lead the green revolution by setting up the necessary framework to begin carbon trading. "Dubai and the GCC have the opportunity to lead the way.

If GCC becomes active, it can lead the world in carbon projects funded through capping and trading," Mr. Beckstrom said. "There are incredible carbon opportunities in this region." As the issue of global warming gains momentum in the media and garners political capital, money from government initiatives, hedge funds and venture capitalists is pouring into the environmental business model du jour.

"The carbon market is the apex of the green market, there is so much money to be made, there is a sea of opportunities out there," Beckstrom said. "Zero carbon is hot. If you want to make a project really sexy, make is zero carbon."

GCC countries have some of the most damaging "carbon footprints" in the world. The UAE, at approximately 55 tons per capita per year, has more than double the carbon footprint per capita of the US, at 22 tons per year.

Other GCC States with large environmental imprints are Kuwait (40 tons per capita) and Qatar (70 tons per capita).

But, according to Beckstrom, this should be seen as an opportunity to make a greater positive impact.

To reiterate his point, Mr. Beckstrom asked the crowd to "Imagine if a country in the GCC said it would go zero carbon and take a cap more stringent than Kyoto..."

GCC countries are already moving towards a more environmentally sustainable model as each country has signed the Kyoto Protocol and many governments have national authorities designed to oversee emissions.

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READERS' COMMENTS

Cash In On Saving The Planet
Posted by T Crowe Semler, Riyadh, Saudi Arabia on Tuesday 20 November 2007 at 21:00 UAE time


Beckstom is brilliant...What a great way to motivate the "Green Movement". It seems corporations, and human nature in general, require monetary motivation to address challenges. The "Carbon Trading" market is setting us on a path to "sustainability". Zero Carbon is the goal. Respect of our Earth must be addressed now. If this progam motivates... then by all means...cash in on saving the planet. T Crowe O'Rourke Semler

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