Carbon market mechanisms are becoming an increasingly popular instrument for international and domestic climate change mitigation efforts. In particular, national and sub-national programmes have shown significant growth in recent years, going some way to make up for uncertainty of international markets under the Kyoto Protocol. Moreover, the 2015 Paris Agreement established a new market mechanism to assist Parties in achieving nationally determined contributions, raising ambition and supporting sustainable development. The exact rules of this mechanism are yet to be determined.
NewClimate Institute is highly active in the analysis, evaluation and design of domestic and international market mechanisms. We evaluate past mechanisms and reflect the lessons learned to the design and development of future mechanisms including those that deliver an overall mitigation impact, which is explicitly stated in the 2015 Paris Agreement. Our experts combine years of experience working in various capacities with the Clean Development Mechanism (CDM) and the Joint Implementation (JI) programme, and have provided support and advice to international policy makers for the emerging New Market Mechanism (NMM) and Framework for Various Approaches (FVA) concepts.
Evaluation of the present implementation status of CDM projects and identification of support measures to keep CDM projects mitigating. Return to all expertise and projects The Clean Development Mechanism (CDM) was introduced by the Kyoto Protocol and has developed into one of the most important international carbon market instruments. The CDM stimulated investments in greenhouse… Read More
Opportunities provided by bilateral agreements for piloting market-based approaches at sectoral levels. The research work analyses how bilateral agreements between countries could be used to pilot international carbon market activities on sectoral levels to ensure a minimum activity level in this transition period from existing to new mechanisms. Return to all expertise and projects The… Read More
Current situation of results-based financing (RBF) approaches in climate policy.
Development of a methodology and scorecard to assess the carbon integrity of mitigation actions
Overview of the options for the use of carbon market mechanisms in a 2015 climate change agreement
Continuous analysis of the status and developments of mitigation activities in the global carbon market up to 2020. The German Emission Trading Authority (DEHSt) at the Federal Environment Agency contracted a consortium led by NewClimate Institute, to follow and evaluate the current situation and developments in the international carbon market over the period up to… Read More
Analysis of the potentials and limits of different offset standards in bilateral and global CO2 price systems. Currently, an increasing number of countries and regions develops CO2 pricing mechanisms, including carbon taxes and emission trading systems. Some of these countries are designing or plan to design standards for the use of offsets in their pricing… Read More
Design and integration of market mechanisms and emission trading schemes under a new climate change agreement. The German emission trading authority (DEHSt/UBA) contracted NewClimate Institute together with adelphi and Öko-Institut to provide a foundation for the formulation and further development of a German position in the climate negotiations, and to facilitate a scientifically-based contribution of… Read More
Setting incentives for ambitious emissions reductions through carbon pricing in developing countries. The German emission trading authority (DEHSt/UBA) contracted a consortium led by NewClimate Institute with Öko-Institut and a local partner for the development and implementation of a market-based approach to mitigation action on the basis of a sectoral benchmark. This approach aims, on the… Read More
Assessing potentials and pathways for financing adaptation through carbon pricing approaches
This research analysed the question if approaches for carbon market-based mechanisms exist that allow the generation of net emission reductions in host countries while keeping project initiation attractive. We present a criteria-based assessment method and apply it for four generic options in existing mechanisms and derive implications for future mechanism frameworks.
This article explains the nature of the new pilot greenhouse gas emission trading schemes (ETS) in China, as well as the significance of their introduction. By moving towards the allocation of emission rights through market mechanisms, the government is signalling that it is addressing climate change seriously and that it wishes to be compared to Europe and the most progressive regions of North America that have also adopted emissions trading. However, the authors also argue that a transition to a more important role for markets in the area of energy and the environment is still in its very early stages.