Will countries like Saudi Arabia replicate the Yasuni-ITT model?
The possibility of replicating the initiative in other regions is promising, under certain conditions. Similar models in other countries would put a greater share of world oil supplies off-limits and accelerate a shift toward renewable fuels to meet global energy demands. If emissions allowances are generated in exchange for such moves, however, other countries with larger oil reserves such as Saudi Arabia might flood carbon markets. This would cause the price of offsets to drop and dampen the environmental effectiveness of existing cap-and-trade regimes. In addition, the Yasuni precedent might prompt coal producing states to claim similar compensation for halting the extraction of a heavily polluting fuel. Here again, one option may be to emphasize the non-carbon benefits of the Park’s protection. Much fewer instances and regions would pass Yasuni’s biodiversity test. Such favorable treatment could be reserved to those countries whose oil reserves lie beneath highly valuable biologica
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