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Market Mechanisms for Sustainable Development: How Do They Fit in the Various Post-2012 Climate Efforts?

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Market Mechanisms for Sustainable Development: How Do They Fit in the Various Post-2012 Climate Efforts?

This new report, developed under IISD's Development Dividend Project, takes a first step at understanding the implications of the various possible climate regimes on the shape and iteration of a market mechanism for sustainable development (MMSD). The paper begins with an analysis that considers the range of options being proposed for the post-2012 regime and then asks what potential role an MMSD might play in these regimes, and what the various sorts of MMSDs might imply for the nature of the overall regime. The second part of the paper examines characteristics of regime structures—targets, differentiation, transition and governance—as they relate to an MMSD and development dividend considerations.