Climate Policy

Climate Policy 4 (2004) 75–80

Commentary

Anticipated economic costs and benefits of ratification of the Kyoto Protocol by the State of Qatar

Azhari F M Ahmed and M J Al Maslamani

Received 7 May 2003 ; received in revised form 29 January 2004 ; accepted 23 July 2004

Further ratification of the Kyoto Protocol by non-Annex 1 countries such as the State of Qatar will not affect the entrance into force of the Treaty; however, ratification remains an important decision due to other considerations, primarily the economic costs and benefits associated with ratification. As a member of the Organization of Petroleum Exporting Countries (OPEC), Qatar's economic position is closely allied with revenue generated from its oil and natural gas resources. Qatar expects adverse impacts from implementing the Kyoto Protocol, though the estimated magnitude varies enormously with different models. Also, the impacts depend significantly on how the implementation is done; for example, the kind of policies that other countries use. Qatar is able to counter adverse impacts by exploiting its greater share of natural gas and developing energy-intensive industries that produce nonenergy goods such as steel, petrochemicals, and chemicals. Furthermore, it is clear that clauses in the Protocol can be developed to protect OPEC interests, and if Qatar does not ratify the Protocol, it will be excluded from the subsequent rule-making processes. On balance, there are benefits to ratifying the Treaty, and there is also a strong need for extensive further research.

Keywords: Kyoto Protocol; Qatar; OPEC

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