Sectoral no-lose target has been suggested as one way to overcome weaknesses of the current clean development mechanism and to encourage structural changes and significant reduction of CO2 emissions in carbon-intensive sectors in developing countries. The purpose of this paper are to: propose a method for formulating national sectoral baselines and crediting targets for the electricity sector for post-2012; assess the amount of emissions that could be reduced compared to the baselines by seven developing countries with large CO2 emissions from electricity generation based on options of increased efficiency fossil power plant and decreased share of fossil electricity; and estimate the amount of emissions reduction credits that could be generated based on the proposed targets.