This paper explores the possibility of linkages between the PAT scheme and the bilateral carbon offset mechanism proposed by the Government of Japan. It is well established that linking a domestic program with any international
mechanism requires it to demonstrate efficient institutional structure for monitoring and verification. Considering the fact that the exiting measures of monitoring and verification under the PAT are primarily developed based on the domestic requirement, any attempt for linking it with any international carbon offset mechanisms would require development of specific guidelines that ensure transparent monitoring, reporting and verification tools and also avoid double counting at the same time. Building on the stakeholder interviews conducted during the month of August 2012, this paper elaborates on three important issues. First, it describes the functioning of the PAT scheme and its institutional arrangement. Second, it lists some of the key challenges that various stakeholders face in successfully implementing or participating in the scheme. And third, it elaborates on the potential ways of linking PAT with international and bilateral
carbon offset mechanisms. In particular, it explores if the existing MRV measures are sufficient enough to equip the scheme to benefit from international support and collaboration.