The MENA region has a significant role to play in global efforts to mitigate climate change. With both COP27 (Egypt) and COP28 (UAE) hosted in the region, several countries have explored implementing initiatives aimed to put a price on carbon, develop domestic and regional carbon markets and engage in international carbon market transactions. Government involvement has been matched by business interest from industrial and financial groups. The reasons vary across countries and include the achievement of nationally determined contributions (NDCs), compliance with the CORSIA scheme for the international aviation sector, economic diversification, and attempts to assert leadership in energy and climate.
This policy brief provides an overview of notable developments in key countries over the past twelve months. While some developments have been notable and should be encouraged, carbon pricing and carbon markets should be significantly scaled up as part of a broad policy package to harness their full potential and contribute to mobilise investment in emissions reductions and removals.