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The document examines the transition from fragmented regional carbon markets to a global architecture, analyzing the risks of market manipulation, environmental integrity failures, and the technical challenges of linking different systems. It proposes a framework of institutional functions—ranging from decentralized cooperation to centralized oversight—to manage price volatility, ensure robust monitoring, reporting, and verification (MRV), and regulate financial derivatives to prevent excessive speculation.

The report assesses the Clean Development Mechanism (CDM), noting significant project attrition and regulatory delays. It highlights the marginalization of Sub-Saharan Africa and the challenges faced by Indian industry, such as stringent additionality tests. The authors propose shifting toward programmatic and sectoral CDMs, suggesting specific reforms for the Chinese steel sector and the use of 'Retirement-CER Obligations' to support the Bali Action Plan.

The report analyzes the Clean Development Mechanism's (CDM) successes and failures, noting a heavy concentration of projects in China, India, and Brazil, while Africa remains largely sidelined. It argues that current project-based modalities and stringent additionality rules create high transaction costs and barriers for Least Developed Countries (LDCs). The authors propose shifting toward programmatic CDM to support small-scale projects and sectoral CDM to address heavy industry, specifically analyzing the Chinese iron and steel sector. Key recommendations include retiring CERs to ensure global emission reductions and reforming additionality testing to be more pragmatic and inclusive.

CDM Watch argues that the Clean Development Mechanism (CDM) has failed to meet its core objectives of climate change mitigation and sustainable development. The organization identifies five critical shortcomings: poor environmental integrity, minimal contribution to sustainable development, inadequate governance of the Executive Board, lack of transparency, and poor performance by Designated Operational Entities (DOEs). To rectify these, CDM Watch recommends transforming the Executive Board into a supervisory committee, delegating case decisions to a professional support structure, ensuring member impartiality and immunity, and improving documentation and observer access.

The report assesses the potential for linking regional and national emissions trading systems (ETS) to create a broader carbon market. It concludes that while an OECD-wide company-level market by 2015 is highly ambitious, linking serves as a critical bottom-up fallback option to top-down international regimes. The study identifies significant barriers to full bilateral linking, including divergent monitoring, reporting, and verification (MRV) provisions, differing offset eligibility, and a lack of consensus on carbon price levels. However, it suggests that unilateral links to international offset mechanisms and indirect links via credits are more likely in the short term.

The report assesses the potential for linking emissions trading schemes (ETS) globally, concluding that an OECD-wide company-level carbon market by 2015 is a "highly ambitious goal." It identifies that while the EU ETS seeks to be a nucleus for a global market, most emerging schemes prioritize domestic price control over full bilateral linking. The study highlights significant barriers to linkage, including divergent target stringencies, the use of intensity-based targets (notably in Canada), and different cost-containment measures like price caps. It distinguishes between unilateral links (one-way recognition), bilateral/multilateral links (mutual recognition), and indirect links (via common mechanisms like the CDM). The report also examines the legal complexities of such links, particularly the constraints on US state-level agreements and the EU's regulatory mandates. It suggests that a "bottom-up" process of linking regional markets could serve as a fallback if top-down international agreements, such as a Kyoto successor, fail.

The report analyzes the performance of Kyoto Protocol mechanisms—International Emissions Trading (IET), Joint Implementation (JI), and the Clean Development Mechanism (CDM)—and explores proposals for a post-2012 regime. It discusses the potential for an allocation-based Market Mechanism for Sustainable Development (MMSD), REDD, and the expansion of the CDM to include carbon capture and storage (CCS), nuclear energy, and sectoral crediting. The document highlights critical challenges for future agreements, including the environmental integrity of credits, the issue of additionality, and the need for ambitious developed-country targets to ensure demand for credits from developing nations.

The document examines the functioning of the Kyoto Protocol's market mechanisms—the International Emissions Trading (IET), Joint Implementation (JI), and the Clean Development Mechanism (CDM)—and explores options for their expansion or replacement in a post-2012 framework. It discusses new proposals such as the Market Mechanism for Sustainable Development (MMSD), REDD, and sectoral CDM, while highlighting challenges regarding additionality, environmental integrity, and the equitable distribution of projects in developing countries.

The document argues that current adaptation funding is financially and technically inadequate, with a significant gap between the estimated USD 28–67 billion annual need for developing countries by 2030 and the limited disbursements from GEF-managed funds. It critiques the inefficiency of existing UNFCCC instruments and advocates for a consolidated, demand-driven financial mechanism based on equity and direct access for recipient countries.

The paper investigates the potential of CER discounting to address CDM shortcomings, such as non-additionality and the uneven distribution of projects. By analyzing abatement cost curves for China, India, advanced Asian countries, and LDCs, the authors find that while discounting can increase costs for advanced developing countries and potentially incentivize them to adopt their own mitigation commitments, it is insufficient on its own to make LDCs competitive. The study concludes that financial, technical, and institutional barriers in LDCs must be overcome for them to realize their theoretical abatement potential, as the abundance of cheap projects in countries like China continues to dominate the market.

The research paper examines the marginal role of Least Developed Countries (LDCs) in the Clean Development Mechanism (CDM) and evaluates whether preferential access to the EU ETS can increase their participation. It finds that such access is insufficient unless underlying barriers—including limited institutional capacity, lack of financing, and high transaction costs—are addressed. The authors use supply-demand scenarios for 2013-2020 and a comparison with the Lomé Conventions in agricultural trade to argue that financial incentives for high-value projects and reduced access costs are more critical than market access alone.

The research paper evaluates the impact of approximately 43 million Euros spent on CDM capacity building in Africa and LDCs over a decade. It finds that while institutional support for establishing Designated National Authorities (DNAs) was generally successful, subsidies for project development were largely ineffective, resulting in a high implicit cost per registered project. The authors argue that a holistic approach coordinating the entire CDM process is necessary for better outcomes.

The report projects emissions for the EU, Japan, and other Annex I countries up to 2012 and 2020. It finds that while the EU ETS is likely to have a surplus of allowances up to 2012 at a price of €20/tCO2, the EU-15 and Japan will face overall deficits relative to their Kyoto targets. Conversely, Russia, Ukraine, and new EU member states are projected to have significant emission surpluses. Looking toward 2020, the EU ETS is expected to enter a deficit unless efficiency and renewables targets are met, suggesting a rise in carbon prices post-2012.

The document assesses the 2008 proposal for the Australian Carbon Pollution Reduction Scheme, focusing on its mechanisms for price control and international linking. It examines the implications of a domestic price cap and the potential for bilateral linking with the European Union and New Zealand, while analyzing the impact of 'hot air' units from Russia and Eastern Europe on the global carbon market.

The document examines the role of agriculture, forestry, and other land use (AFOLU) in global GHG mitigation, highlighting the significant potential in developing countries and the technical and political barriers to their inclusion in UNFCCC agreements. It details the limitations of the Clean Development Mechanism (CDM) and the ongoing discussions regarding REDD, while providing a specific analysis of Canada's domestic policies and international submissions regarding LULUCF accounting.

The document argues that while agriculture and forestry offer cost-effective and rapid opportunities for greenhouse gas (GHG) mitigation, they have been fragmented and largely excluded from international policy frameworks. It highlights the significant potential for carbon sequestration in developing countries' soils and forests, while detailing technical barriers such as non-permanence, leakage, and accounting uncertainties. The briefing specifically discusses Canada's efforts to propose a 'Forward Looking Baseline' for forest management and its domestic regulatory approach to carbon offsets.

The document assesses the financial requirements for climate mitigation and adaptation in developing countries, noting that current public funding is insufficient. It details specific investment needs for 2030, analyzes existing funds like the GEF and Adaptation Fund, and examines various proposals for new revenue streams, including GDP-based levies, carbon market expansions, and international transport levies. The paper emphasizes the need for a structured approach to technology innovation and a predictable, grant-based system for adaptation.

The document analyzes the role of carbon markets in financing climate action in developing countries, estimating potential revenues and evaluating different market mechanisms. It argues that while the Clean Development Mechanism (CDM) has provided a starting point, expanding to sectoral and allocation-based mechanisms is necessary to cover the high-emitting electricity and industrial sectors of Major Developing Economies (MDEs). The paper proposes a phased approach to developing country participation, moving from broadened CDM and other market mechanisms for sustainable development (MMSDs) toward sectoral and economy-wide commitments, contingent on developed countries meeting their own stringent targets.

The report details the progress of the UNFCCC negotiations at COP 14 in Poznan, highlighting the operationalization of the Adaptation Fund and the agreement to enter 'full negotiating mode' for 2009. It examines the work of the AWG-LCA and AWG-KP, noting a lack of breakthroughs on global emission goals and a divide between developed and developing nations regarding mitigation commitments. The document concludes by outlining the critical issues and deadlines remaining for the COP 15 meeting in Copenhagen.

The document analyzes the role of agriculture in global GHG mitigation and adaptation, highlighting that while the sector has a technical mitigation potential of 5.5 to 6 GtCO2e per year by 2030, progress is hindered by accounting complexities and non-permanence of soil carbon. It details Canada's domestic offset experiences, such as Alberta's tillage protocol, and argues for expanding the Clean Development Mechanism (CDM) or creating new market mechanisms for sustainable development (MMSDs) to engage developing countries, where 70% of agricultural mitigation potential resides.