Preparation and development of pilot sectoral carbon market mechanisms

While there has been demonstrable success in global efforts to reduce greenhouse gas emissions, particularly in the growth of emissions trading schemes worldwide, the uncertainty of the future of flexibility mechanisms like the CDM with the closure of the first Kyoto commitment phase, and the need for developing countries to substantially enhance their Nationally Appropriate Mitigation Actions (NAMAs), points to a greater need to enhance market-based solutions to the global climate challenge. During the Climate Conference at Durban, South Africa in 2011, countries agreed to establish a New Market Mechanism to promote mitigation actions and enhance their cost effectiveness.

In response, DS, together with project partners TUV Rheinland and the Sustainable Development Association, are working together with the European Commission to support the UNFCCC in the design and implementation of the New Market Mechanism, identifying key sectors and beneficiary countries for its piloting and conducting public consultations to ensure maximum input from a broad range of stakeholders on the planning and design of the NMM.