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Market Instruments for Mitigation Action

This study explores various market mechanisms for Nationally Appropriate Mitigation Actions (NAMAs) that support low-carbon development. It examines allowance-based and offsets-based emissions management strategies, including project-based and program-based approaches. Key mechanisms discussed include NAMA credits, sectoral crediting, economy-wide caps, and the use of green and white certificates. The potential for market linkages with existing allowance and offset systems is also analyzed. By promoting renewable energy and energy efficiency programs, these instruments aim to drive significant reductions in greenhouse gas emissions.

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Market Instruments for Mitigation Action

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  1. Market Instruments for Mitigation Action National Development plan Low carbon study/NAMAs Choice of Market Mechanism Allowance - based Offsets-based Emissions Management • Project-based • Program-based • NAMA credits • Sectoral crediting • Sectoral cap • Economy-wide cap Green Certs White Certs Potential Market linkages Potential Market linkages Potential linkages to allowance and offset systems Voluntary Compliance Voluntary Compliance Green certificates result from programs to promote renewable energy while White Certificates result from energy efficiency programs Ital indicates proposed mechanism

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