Design of the post-2012 climate regime: sectoral approaches to GHG mitigation

In 2010, at COP 16 in Cancun, Parties decided to consider the establishment of market-based mechanisms. These should be based on the principles of voluntary participation, cover "broad segments of the economy" (sectors), ensure environmental integrity and lead to a net decrease of GHG emissions. In this project we examine several issues relevant to a sound design of such a sectoral mechanism, including incentives for mitigation investment, challenges for monitoring, reporting and verification (MRV), setting baselines and institutional arrangements.