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GCC Countries Strategic Options in a Global Transition to Zero-Net Emissions
Frédéric Babonneau1,2, Ahmed Badran3, Alain Haurie4,5
1KEDGE Business School, Bordeaux, France.
Environmental Modeling and Assessment
|June 26, 2023
Summary
GCC countries should proactively engage in global climate negotiations and develop emissions trading. Investing in carbon reduction technologies can secure their economic future during the net-zero transition.
Area of Science:
- Economics
- Climate Science
- Energy Policy
Background:
- The global economy is transitioning towards net-zero emissions by 2100.
- GCC countries are major oil and gas exporters, facing economic challenges and opportunities in this transition.
Purpose of the Study:
- To analyze the implications of global net-zero emissions for GCC economies.
- To propose strategic and political options for GCC states navigating climate change mitigation.
Main Methods:
- Multi-level perspective approach.
- Top-down macroeconomic modeling.
Main Results:
- An obstructionist strategy in climate negotiations is detrimental for GCC states.
- Proactive engagement in international emissions trading is recommended.
- Exploiting negative emissions via direct air capture with sequestration offers economic potential.
Conclusions:
- GCC countries can benefit from a proactive approach to climate policy.
- Developing carbon reduction technologies and emissions markets aligns economic interests with global climate goals.
- A net-zero future can accommodate the use of cleaner fossil fuels.
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