This study explores options for future market-based mitigation frameworks in Non-Annex 1 countries, starting with the CDM and moving towards various possible forms of a multilateral new market mechanism (NMM) under the UNFCCC, domestic emissions trading schemes (ETS) or domestic non- ETS solutions implemented as Nationally Appropriate Mitigation Actions (NAMA).
Five potential transition options ("pathways") from the CDM to future mechanisms (such as the NMM or supported NAMAs) have been analytically developed. Each features a further step with the countries moving to implement independent domestic instruments, e.g. under unilateral NAMAs. And each shows possible progress of market-based climate policy instruments on the basis of lessons learned from the CDM.