Carbon markets and renewable energy

Abstract

Taking the study of the countries of the Northern Triangle of Central America as a starting point, as well as their energy matrices, their potential for renewable power generation, and the viability of their energy laws, taking into account the examination of the underlying environmental impact of such matters and associating these items with the Kyoto Protocol, it will be, then, possible, to achieve a comprehensive understanding of the Clean Development Mechanism as the mean for the region to get involved into carbon markets. Moreover, Panama has been employed along this paper as a reference, its pattern of growth, diversification and innovation in energy sector, support its performance throughout the developed analysis. By means of a multi-criteria analysis of the discussed topics, holistic research and prospective vision, which conform the methodological strategy followed in this paper, it is provided meaningful results that must not go unnoticed: the Northern Triangle of Central America is projected as a favorable region to expedite its participation in carbon markets. While this statement should not be taken in some very ruthless manner, it has to be considered as a medium-long term option to accelerate decision-making in favor of the region.