Sectoral approaches and the carbon market
Sectoral approaches are proposed as a means to broaden the global scope of greenhouse gas (GHG) mitigation to developing countries. Market mechanisms are put forward in that context to create incentives for mitigation in developing countries beyond the existing Clean Development Mechanism (CDM), and to
encourage mitigation at least possible cost. The introduction of new, sector-based, market mechanisms is only one of many proposals discussed by UNFCCC Parties in the context of a post-2012 international climate policy framework, as a possible means to support mitigation actions in developing countries. The
role of such sectoral mechanisms will eventually be determined by the emission goals that accompany them, and on how the Parties decide to harness the carbon market and other mechanisms to support mitigation in developing countries. These aspects are also currently under negotiation. This paper considers the carbon market aspects of sectoral approaches to reduce greenhouse gas (GHG)emissions in developing countries.