Electricity sector crediting mechanism based on a power plant emission standard

This article proposes and investigates a project-based crediting mechanism which based o a national CO2 emission intensity standard for new power plants to be added in the electricity sector from 2013-2020 in developing countries. Under this mechanism, the power plant emission intensity standard is used as a basis for issuing credits for new power plants with an emission intensity below the standard and also for imposing taxes on new power plants with an emission intensity above the standard. The mechanism is based on mechanisms that have been proposed or already been implemented, including sectoral no-lose target, sectoral CDM, environmental performance standard and carbon tax. Any developing countries could voluntarily participate in this mechanism. If countries participate in gaining credits from this mechanism, the government of the countries would be required to either regulate/prohibit new plants or impose taxes on new plants with an emission intensity above the standard.