The objective of the work on the project-based mechanisms is to assess progress with, and design options for the Clean Development Mechanism (CDM) and Joint Implementation (JI).

Making Markets: Unpacking Design and Governance of Carbon Market Mechanisms (2012)
Andrew Prag (OECD), Gregory Briner (OECD), and Christina Hood (IEA)
This paper identifies the key design elements of market mechanisms and examines the governance structures and decision-making processes used to create tradable GHG units in existing systems both inside and outside of the UNFCCC. The analysis explores the potential involvement of international, national and sub-national regulatory bodies in the governance and decision-making processes and the possible role that internationally-agreed standards could play in providing confidence in the quality of GHG units.

Crossing the Threshold: Ambitious Baselines for the UNFCCC New Market-based Mechanism (2012)
Andrew Prag and Gregory Briner (OECD)
This paper explores the use of ambitious crediting baselines for groups of emitters as the basis for a new market mechanism that meets principles agreed at COP 16 such as “stimulating mitigation across broad segments of the economy”, “ensuring a net decrease and/or avoidance of global greenhouse gas emissions” and “assisting developed countries to meet part of their mitigation targets”. It focuses on how to define groups of emitters and explores different approaches for building ambition into baselines including using emissions projections and performance benchmarks. It also presents potential elements of a process for setting baselines for subsequent international recognition. The paper builds on extensive previous analyses carried out on emissions baselines for market mechanisms, taking into account recent developments in the international negotiations.

Cities and Carbon Market Finance: Taking Stock of Cities' Experience with Clean Developement Mechanism (CDM) and Joint Implementation (JI) (2010)
Christa Clapp (OECD), Alexia Leseur (CDC Climat Recherche), Oliver Sartor (CDC Climat Recherche), Gregory Briner (OECD) and Jan Corfee-Morlot (OECD)
This paper reviews 10 in–depth case studies of urban projects proposed and operating within the realm of Joint Implementation (JI) and the Clean Development Mechanism (CDM) of the Kyoto Protocol. Drivers of success for these projects are examined, and how to best tap the potential for carbon markets to offer increased levels of financial support for urban mitigation projects is explored.

Carbon Capture and Storage in the CDM (2007)
Cédric Philibert (IEA), Jane Ellis (OECD), and Jacek Podkanski (IEA)
The possible inclusion of CCS projects under the Clean Development Mechanism (CDM) raises a number of issues, including how to deal with potential leaks of CO2 and associated permanence and liability issues, what an appropriate project boundary is, how to deal with CDM-“leakage” (i.e. emissions resulting from the project activity beyond its boundaries) and what the possible impact of including CCS would be on the broad CDM portfolio. In assessing these issues, this paper analyses various ways to effectively address the key issue of long-term liability and show the potential climate benefits of including CCS in the CDM.

Overcoming Barriers to Clean Development Mechanism Projects (2007)
Jane Ellis (OECD) and Sami Kamel (UNEP Risø Centre)
The market for Clean Development Mechanism (CDM) projects is continuing to grow rapidly, with the current portfolio expecting to deliver 2 billion tons of CO2-eq greenhouse gas (GHG) emission reductions by 2012, equivalent to 17% of Annex I Parties’ base year GHG emissions. In total, governments and companies have earmarked over USD11 billion for CDM funding to 2012. This study analyses the various barriers to CDM market expansion in developing countries, and makes recommendations on how some of them can be removed or reduced. It also examines the distribution of CDM projects amongst regions and sectors.

Joint Implementation: Current Issues and Emerging Challenges (2006)
Katia Karousakis (OECD)
This paper reviews issues and challenges associated with implementing Joint Implementation (JI) under the Kyoto Protocol. The paper begins with an overview of the current JI portfolio and the existing market developments: who are the major buyers and sellers, what sectors are involved, and what are the current market prices for emission reduction units (ERUs). Though JI is currently only a small part of the developing carbon market, JI is developing rapidly.

The Developing CDM Market: May 2006 Update (2006)
Jane Ellis and Katia Karousakis
This paper updates key observations regarding developments in the CDM portfolio.

Issues Related to a Programme of Activities under the CDM (May 2006)
Jane Ellis
This paper assesses how “project activities under a programme of activities” under the CDM (referred to here as PCDM) could help to increase the effectiveness of the CDM by encouraging a wide spread of emission mitigation activities. This paper also explores the key issues that may need to be considered for the PCDM concept to be further implemented.

The Developing CDM Market (2005)
Jane Ellis and Ellina Levina
This paper outlines key observations regarding developments in the CDM portfolio.

The CDM Portfolio: Update on Non-electricity Projects (2004)
Jane Ellis and Frédéric Gagnon-Lebrun
The CDM portfolio is growing and changing fast. Current proposals for CDM projects indicate that they expect to generate 352 million credits prior to 2012: 91.3 million credits pre- 2008 and a further 52.3 million per year (equivalent to the amount of Denmark’s CO2 emissions in 1990) during 2008-2012. The aim of this paper is to provide an update on the composition of the CDM project portfolio, based on analysis of project-specific documentation for 201 proposed CDM projects, and to examine how additionality, baselines and co-benefits of proposed CDM projects have been treated. In particular, this paper focuses on proposed CDM project activities that mitigate greenhouse gas (GHG) emissions primarily through activities that do not involve electricity generation.

Taking Stock of Progress under the Clean Development Mechanism (2004)
Jane Ellis, Jan Corfee-Morlot and Harald Winkler
This paper looks at the achievements of the CDM to date in the context of wider private and public flows of investment into developing countries. The paper also raises some questions about the ability the CDM to act as a bridge towards achievement of cost-effective GHG mitigation across different countries and regions over time while also advancing sustainable development objectives in developing countries.

Publication: Greenhouse Gas Emissions Trading and Project-based Mechanisms (2004)
This book presents a selection of papers from an international workshop co-sponsored by the OECD and Concerted Action on Tradeable Emissions Permits (CATEP), to discuss key research and policy issues relating to the design and implementation of these instruments. The papers cover the experience of developing and transition countries with greenhouse gas emissions trading and project-based mechanisms. In addition, the papers examine the use of tradeable permits in policy mixes and harmonisation of emissions trading schemes, as well as transition issues relating to greenhouse gas emissions trading markets.