This working paper analyses the nationally determined contributions (NDCs) of the Asian Development Bank’s developing member countries. It focuses on the intent and preparedness of member countries to use market mechanisms in achieving targets set out in their NDCs.
The review shows that 20 of the 41 ADB member countries are intending or considering using market mechanisms, 16 countries have not stated their positions on the use of market mechanisms, and 5 countries mentioned that they will not use market mechanisms.
- Section 1 describes the role of NDCs, Article 6 of the Paris Agreement, and market mechanisms as well as the purpose, scope, and limitations of the paper.
- Section 2 covers a general review of interest in market mechanisms at the international level and in Asia and the Pacific, and then focuses on the 20 ADB member countries intending or considering using market mechanisms.
- Section 3 analyses the conditionality of the NDC mitigation targets and their possible links with market mechanisms.
- Section 4 gives an overview of experience with market mechanisms and ongoing activities in preparation for post-2020 markets.
- Section 5 summarises key findings of the analyses.