Guidelines for a Sectoral Sustainable Development Mechanism in the Post-2020 Climate Regime

Abstract

We propose a set of guidelines for a Sustainable Development Mechanism (SDM), a new market-based mechanism under Article 6 of the Paris Agreement. We propose that a new SDM should adopt a sectoral approach for facilitating the international transfer of mitigation outcomes. We suggest ways in which a new sectoral SDM can create a robust, credible market for tradeable carbon offsets, building upon the lessons of the project-based Clean Development Mechanism (CDM) and active sectoral-based crediting mechanisms in several domestic contexts