The sectoral approach analyzed in this paper employs what is known as a “sectoral no-lose target”, coupled with a “sectoral crediting mechanism”. The basic idea is quite simple. Conceptually, it is quite similar to treating an entire sector in a developing country as a CDM project. The paper, which was presented by GWEC and Greenpeace China at the COP14 in Poznan, looks at the mitigation and financing potentials of this approach, with a focus on the electricity sector.

This report explores a sectoral crediting mechanism (SCM) for developing countries in a post-2012 UNFCCC climate regime. The report explores how a SCM could be implemented in practice. Different options for designing a SCM are identified and their advantages and disadvantages are discussed. Based on this analysis of options, a consistent policy framework for the introduction of a SCM under UNFCCC is proposed.

Click here for the report

Click here for the PPT presentation