Crediting Mechanisms Overview

This document provides a summary
assessment of (presented) scaled-up crediting instruments as
well as existing project-based crediting schemes against a
number of important general characteristics of such
instruments. Its purpose is to provide insights that may
inform the design and use of possible scaled-up crediting
instruments. This summary assessment begins with an
examination of proposals for scaled-up crediting mechanisms.
It considers existing crediting instruments, that is, (i)
Kyoto project mechanisms (clean development mechanism (CDM)
and joint implementation (JI)); and (ii) voluntary emission
reductions (VER) schemes (in the non-compliance and
voluntary markets). The characteristics (or issues) covered
are: (i) national and international circumstances for
market-based mechanisms and how these interact; (ii)
coverage and boundary setting; (iii) participation and
incentives for participation; (iv) caps, baselines, and
allocations (or issuance); (v) market integrity and
credibility; (vi) monitoring, reporting, and verification
(MRV); (vii) program authority and administration; and
(viii) potential scaling up modalities.