Editing IPCC:AR6/WGIII/Chapter-13 (section)

==== 13.6.6.2 Market for Emission Reduction Credits ====

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A mitigation policy may allow the use of credits issued for emission reductions in other countries for compliance purposes (see also [[#13.6.3.4|Section 13.6.3.4]] on offset credits and [[IPCC:Wg3:Chapter:Chapter-14|Chapter 14]] on international credit mechanisms). Creation of international markets for emission reduction credits tends to benefit other countries through financial flows in return for emissions credit sales ( ''medium evidence'' , ''hi'' ''gh agreement'' ).

The EU, New Zealand and Switzerland allowed participants in their emissions trading systems to use credits issued under the Kyoto Protocol mechanisms, including the Clean Development Mechanism (CDM), for compliance. From 2008 through 2014, participants used 3.76 million imported credits for compliance of which 80% were CDM credits ( [[#Haites--2016|Haites 2016]] ). [[#footnote-002|3]] Use of imported credits has fallen to very low levels since 2014 ( [[#World%20Bank--2014|World Bank 2014]] ; [[#Shishlov--2016|Shishlov et al. 2016]] ). [[#footnote-001|4]]

The Clean Development Mechanism (CDM) is the world’s largest offset programme (Chapter 14). From 2001 to 2019 over 7500 projects with projected emission reductions in excess of 8000 MtCO 2 -eq were implemented in 114 developing countries using some 140 different emissions reduction methodologies ( [[#UNFCCC--2012|UNFCCC 2012]] ; [[#UNEP%20DTU%20Partnership--2020|UNEP DTU Partnership 2020]] ). Credits reflecting over 2000 MtCO 2 -eq of emission reductions by 3260 projects have been issued. To address additionality and other concerns the CDM Executive Board frequently updated its approved project methodologies.

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