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greenhouse gas (GHG) emissions domestically. The three KP
mechanisms include:
• International Emissions Trading
• Joint Implementation (JI)
• Clean Development Mechanism (CDM)
A second commitment period to the Protocol was negotiated at the
17th Conference of the Parties (COP17) in Durban in 2011 implying
that the KP flexible mechanisms will continue until 2020 at least.
A number of new market mechanisms are being considered to
scale up carbon offsetting in developing countries, namely bilateral
and sectoral mechanisms, the Reducing Emissions from Deforestation
and Forest Degradation (REDD+) mechanism and credited Nationally
Appropriate Mitigation Actions (NAMAs). All these new mechanisms
aim to scale up the CDM significantly. Table 2.7 lists the new market
mechanisms.
Table 2.7: New Market Mechanisms
New market Description Status Private sector
mechanisms involvement
Japan is currently
Bilateral Agreement between a country funding pilot projects. As with CDM, the
offsetting with international emissions private sector has a
crediting reduction targets and COP16 in Cancún similar role to play
mechanism developing countries without delivered an through investments in
such a target. The scheme will international agreement return for offsets.
have similar objectives to the on the formation of
CDM, yet with a simplified the REDD mechanism. The key issue in the
administrative process and on However, the design has design is finance.
a larger scale. not been established. Public finance will
The mechanism not be adequate for
REDD+ Mechanism to stop global is currently only this kind of funding,
deforestation by offering operational in the which means that much
developing countries financial voluntary carbon depends on the private
incentives to preserve forests market. sector. At present,
in return for carbon credits. financials are mainly
involved in the carbon
market forestry sector,
financing projects in
return for carbon credits
for speculative or CSR
purposes.
264 Low Carbon Development in China and India
mechanisms include:
• International Emissions Trading
• Joint Implementation (JI)
• Clean Development Mechanism (CDM)
A second commitment period to the Protocol was negotiated at the
17th Conference of the Parties (COP17) in Durban in 2011 implying
that the KP flexible mechanisms will continue until 2020 at least.
A number of new market mechanisms are being considered to
scale up carbon offsetting in developing countries, namely bilateral
and sectoral mechanisms, the Reducing Emissions from Deforestation
and Forest Degradation (REDD+) mechanism and credited Nationally
Appropriate Mitigation Actions (NAMAs). All these new mechanisms
aim to scale up the CDM significantly. Table 2.7 lists the new market
mechanisms.
Table 2.7: New Market Mechanisms
New market Description Status Private sector
mechanisms involvement
Japan is currently
Bilateral Agreement between a country funding pilot projects. As with CDM, the
offsetting with international emissions private sector has a
crediting reduction targets and COP16 in Cancún similar role to play
mechanism developing countries without delivered an through investments in
such a target. The scheme will international agreement return for offsets.
have similar objectives to the on the formation of
CDM, yet with a simplified the REDD mechanism. The key issue in the
administrative process and on However, the design has design is finance.
a larger scale. not been established. Public finance will
The mechanism not be adequate for
REDD+ Mechanism to stop global is currently only this kind of funding,
deforestation by offering operational in the which means that much
developing countries financial voluntary carbon depends on the private
incentives to preserve forests market. sector. At present,
in return for carbon credits. financials are mainly
involved in the carbon
market forestry sector,
financing projects in
return for carbon credits
for speculative or CSR
purposes.
264 Low Carbon Development in China and India
