International and European market mechanisms in the climate change agenda—An assessment of their potential to trigger investments in the Mediterranean solar plan

The idea to use the sun of the Sahara for European energy needs is simple to conceive, but not so simple to implement. This article reviews one tool in the arsenal of methods to come nearer to that goal—virtual trading using flexibility mechanisms. Flexibility mechanisms are established under the Kyoto Protocol and available in EU legislation. But restrictions exist and market forces, mostly generated by national emissions reduction obligations under climate policy, do not necessarily act in favor of renewable energy imports into Europe. The paper assesses the current situation, in view of EU member statesʹ recently published positions on the use of flexibility mechanisms for cross-border trade.