Similar to other developing countries the electricity sector in Lebanon is monopolized by a vertically integrated public utility, Electricite Du Liban (EDL). EDL's supply is characterized by frequent and lengthy power cuts that have given rise to an alternative, informal, and unregulated backup sector, which serves to satisfy electricity demand during the extended blackout periods. This paper examines the evolvement of the backup sector and its related CO2 emissions via the use of scenario analysis. The economic and energy policy implications of each scenario are discussed and a number of policy options are presented to ensure that the growth in CO2 emissions is contained. Results clearly indicate that the backup sector plays a critical role in the success of any greenhouse gas mitigation commitment undertaken by Lebanon. A clear strategy on dealing with this sector needs to be devised simultaneously if not prior to any climate change policy at the national level. (C) 2009 Elsevier Ltd. All rights reserved.