- A) Emission trading: Emission trading is a market based approach to control pollution. In this a set of quota is set as limitation on the amount of carbon that can be emitted. If the entity exceeds the quota it has to buy from a seller which has emitted less quantum of carbon than the prescribed limit. It is between two annexure countries.
- B) Clean development mechanism: It allows a country with emission reduction limitation to set up a project in developing country. This setting up of the project will be considered as the part of the emission reduction programme of the implementing country. It is a mechanism sanctioned under Kyoto protocol.
- C) joint implementation: An annex I country ( which have mandatory binding under Kyoto protocol) can invest in emission reduction projects in any other annex I country as an alternative to reducing emissions domestically.
- d) REDD: It is a set of steps designed to use market and financial incentive in order to reduce emissions of green house gases from deforestration and forest degradation. It is a collaborative programme of FAO, UNDP and UNEP. Its goal is to reduce forest emissions and enhance carbon stocks in forests while contributing to national sustainable development. It was created in 2008.
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