Market based approaches are a key element in the international response to climate change. This study aims to contribute to the on-going discussions in various fora, including the Frameworks for Various Approaches (FVA) and New Market Mechanisms (NMM), on how market based mechanisms need to be designed to deliver cost-effective, real, measureable, additional and permanent emission reductions. The study focuses on crediting mechanisms.
Part I of the study discusses blueprints for baseline setting and additionality determination in the absence of any mitigation pledges in the host country, drawing upon key lessons learned from existing crediting mechanisms, in particular the Clean Development Mechanism (CDM) . 
Part II lays out the novel aspects that come into play for countries with mitigation pledges. Here, the pledges inform baseline setting and additionality determination in order to maintain consistency and prevent double claiming.