January 2009

Country Profile Algeria

Since its independence in 1962, Algeria has increasingly focused on the extraction of oil and gas. Some 98.5 percent of its foreign currency receipts stem from energy exports, which in turn make up 35 percent of the country’s gross domestic product. The EU is one of Algeria’s key trading partners, receiving no less than 48.8 percent of Algerian exports in 2007. Algeria, on the other hand, receives 51.8 of the goods it imports from the EU.

The biggest environmental problems faced in Algeria are poor air quality, inadequate water resources, coastal and marine pollution, waste disposal, nature conservation and advancing desertification. Since the introduction of its national action plan, a range of programmes have been implemented which focus on desertification, waste management and coastal and marine protection. A legal framework has also been put in place to promote environmental protection. However, a lack of financial resources and frequent institutional upheaval act as a barrier in implementing the associated legislation. A further problem is encountered in gas and oil extraction, with the gas that occurs as a by-product of oil production being burned or flared off in most cases. Gas flaring results in additional CO2 emissions. While Algeria has yet to have any CDM projects in the pipeline, it has already joined the Global Gas Flaring Reduction (GGFR) partnership and Algerian utility SONATRACH has declared its intention to finance projects aimed at reducing gas flaring activities. This will be done under a World Bank/GGFR project – the CDM Capacity Building Pilot Project for Gas Flaring Reduction – which commenced in 2004. The idea is to reduce emissions of secondary gas and use what gas is emitted. Algeria has participated in the second project phase (2006 – 2009) of the UNEP CD4CDM project. The first conference held in connection with this project took place at the end of 2008 and focused on renewable energy. The first national workshop is planned for January 2009. Further information:

Further Information:

Designated National Authority (DNA)
"UNEP Capacity Development for the Clean Development Mechanism Programme
Sonatrach CDM Case Study (Presented at Carbon Expo 2005) (PDF)
Sonatrach (Algerian utility)
German-Algerian Chamber of Industry and Trade
GTZ in Algeria
German Foreign Office: Information on Algeria
CIA World Factbook: Algeria