This report analyses activities developed outside of the Partnership for Market Readiness (PMR) that could evolve to become possible NMM pilot activities. It assesses a number of initiatives that can provide lessons for the design of market mechanisms, ranging from the Japanese Joint Crediting Mechanism (JCM) to the Climate Investment Funds (CIF) of the World Bank. This assessment is done on the basis of a set of criteria covering the mitigation contribution, MRV ability and practicality.
The study concludes that NMM pilot activities could take many sizes and shapes, and should ideally cover Least Developed Countries (LDCs) as well as large emerging economies. The majority of the initiatives assessed did not envisage to generate credits, but aimed to provide credible proof of achieved greenhouse gas (GHG) reductions. Open questions include how to safeguard environmental integrity through conservative and credible baselines and post-NMM emission level determination methodologies and how to ensure that incentives reach the entities that can mobilize mitigation. Still, a number of such activities can provide valuable lessons for mechanisms that have the primary aim of generating Carbon credits.
Date:
July 2015
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