In particular industrialised countries have strongly advocated for introducing new emission trading mechanisms at sectoral level. The expectation is that scaled-up mechanisms will be able to mobilise carbon finance on a much larger scale than so far, will be better able to reach sectors the CDM has so far hardly tapped, will give incentives to developing countries to implement climate-friendly policies, and will be more environmentally robust than the project-by-project approach of the current CDM. This paper analyses the viability of sectoral approaches in developing countries as well as their advantages and disadvantages.
Sterk, W.: New Mechanisms for the Carbon Market? Sectoral Crediting, Sectoral Trading, and Crediting Nationally Appropriate Mitigation Actions. JIKO Policy Paper 04/2010. Wuppertal Institute for Climate, Environment and Energy. Wuppertal - 19 pages.
Date: July 2010
Type: Policy Paper