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"They're moving away from a system of controls and directives toward a system based on market-based instruments," said Benedict Bingham, the International Monetary Fund's resident representative in Hanoi.
Market-based instruments are essential.
In addition, a range of resources – from grants and loans to fiscal measures and market-based instruments – will be needed for successful mitigation and adaptation on the ground.
Using examples from countries in the global south he argues that market-based instruments such as carbon trading and the clean-development mechanism are not working.
But some financiers said the urgency of the problem meant that those concerns should not prevent Europe from spearheading development of new market-based instruments.
The most promising aspect of the treaty its innovative use of market-based instruments such as carbon-emissions trading—was resisted tooth and nail by Europe's greens.
The irony is that America fought for market-based instruments such as emissions trading to be included in the Kyoto treaty, while the EU violently objected.
By defining market-based instruments broadly, I cast a large net for this review of applications.
From this, we draw some key design lessons for such market-based instruments.
It is crucial to understand corporate preferences in designing and planning new market-based instruments.
In the past few decades, economists have defended the use of market-based instruments (MBI) in environmental and climate policy.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com