New Market-based Mechanisms post-2012: Institutional Options and Governance Challenges when Establishing a Sectoral Crediting Mechanism

This paper gives an overview of current country positions on market mechanisms to assist developed countries in meeting their mitigation commitments in a post-2012 climate regime, discusses pros and cons of different accounting and governance frameworks for new market-based mechanisms (“NMMs”), and examines inasmuch the Clean Development Mechanism (“CDM”) provides a suitable model for centrally governed sectoral crediting mechanisms.