Page 300 - Low Carbon Development in China and India

Sectoral The design is not established; Subject to design and As with CDM, the
crediting however, the common idea is negotiations. private sector has a
mechanisms to credit emissions reductions role to play through
achieved on aggregate in investments in return
a specific sector below a for offsets.
certain predefined baseline.
The scope could either be on
sectors within one country or
across sectors internationally.

Sectoral A (developing) country Subject to design and Companies would be
trading commits to legally binding negotiations. subject to a compliance
mechanisms emissions reduction targets regime such as through
for specific sectors under the an ETS.
UNFCCC umbrella. Rules
and requirements would be
comparable to an ETS.

NAMAs Very broad definition for Scope and design As funding is
voluntary emission reduction unclear. essential, and public
measures undertaken by finance is limited, the
developing countries that meet private sector has an 3.2
the needs of their specific important role to play.
national circumstances. Potential to present
NAMAS are expected to be vast opportunities for
one of the main vehicles companies.
for mitigation action in
developing countries under a
future climate agreement, and
can take the form of policies
or actions implemented
at national, regional or
local levels. They can be
project-based (like the CDM),
sectoral, or nationwide (for
instance, as an ETS). Possible
inclusion of carbon crediting
mechanisms.

Source: Ernst & Young (2012)

In India, to date, the CDM has been the main international mechanism
for mitigation. Data analysis of CDM-registered projects in India reveals
that the projects are concentrated in states that are more industrialized,
such as Gujarat and Maharashtra. China, in contrast, has central and
provincial governments offering institutional support to CDM project

Chapter 2 Innovative Financing for Low Carbon Development 265