3. Proposal of innovative mechanisms for future climate regime
ESCAP has conducted studies and activities on innovative mechanisms for future climate change regime, with a focus on generating verifiable net emission reductions without imposing any target on developing countries, such as through the certified emission reduction (CER) discounting scheme. The main points of ESCAP’s proposal for the abovementioned discounting scheme include the following:
• CDM could function as an economic instrument for generating net emission reductions from Non-Annex 1 countries.
• It could create a virtuous cycle through which Non-Annex 1 countries could raise more revenue and, at the same time, contribute to producing even more global emission reduction, without fearing the imposition of a binding target that would burden their economy.
• Current CDM criteria and procedures would have to be considerably relaxed and simplified so that many more CDM projects could be developed by Non-Annex 1 countries based on a unilateral CDM approach.
• Parties to the Kyoto Protocol could review the merit of introducing the CER discounting scheme as an issue for the long-term evolution of CDM.
These points have been discussed in the following ESCAP meetings:
• Asia-Pacific Dialogue on Innovative Options for Non-Annex 1 Countries’ Participation for Climate Change Action, 29 March 2006, Bangkok.
• UNESCAP/IGES Asia-Pacific Consultation on Climate Change Regime Beyond 2012
- South-East Asia, 19-20 July 2006, Bangkok.
ESCAP is conducting an in-depth study on the details of the proposed CER discounting scheme in consultation with governments in this region that are concerned with the Kyoto Protocol.
