[[NAMA][Sectoral] crediting mechanism
38. A [NAMA][sectoral] crediting mechanism is hereby defined.
39. The [NAMA][sectoral] crediting mechanism shall be subject to the authority and guidance of the [supreme body] and supervised by [a dedicated body] [the CDM Executive Board].
40. Units shall be issued for measured, reported and verified reductions [or removals] beyond a crediting reference level.
41. If, during a crediting period, a participating developing country Partys actual emissions within the relevant boundary exceed the crediting reference level [or actual removals within the relevant boundary are below the crediting reference level], no units shall be issued to that Party.]
[Sectoral trading mechanism
42. A sectoral trading mechanism is hereby defined.
43. The sectoral trading mechanism shall be subject to the authority of the [supreme body] and shall be supervised by [a dedicated body].
44. Units shall be issued at the start of each trading period and the amount of such units shall be calculated in accordance with that Partys trading reference level.
45. At the end of each trading period, a participating developing country Party shall retire a number of eligible units equal to its actual net emissions within the sector boundary during the trading period.
46. Any use of units acquired by developing country Parties for the purpose of meeting a trading reference level shall be supplemental to domestic actions.]
[NAMA crediting and trading mechanism
47. A NAMA crediting and trading mechanism is hereby defined.
48. The mechanism shall function under the guidance of, and be accountable to, the [supreme body] and shall be supervised by a body to be established or appointed by the [supreme body].
49. For each developing country Party that elects to participate on the basis of a crediting reference level:
(a) Units shall be issued for measured, reported and verified reductions or removals beyond a crediting reference level;
(b) If, during a crediting period, a participating developing country Partys actual emissions within the relevant boundary exceed the crediting reference level or actual removals within the relevant boundary are below the crediting reference level, no units shall be issued to that Party.
50. For each developing country Party that elects to participate on the basis of a trading reference level:
(a) Units shall be issued at the start of each trading period and the amount of such units shall be calculated in accordance with that Partys trading reference level;
(b) At the end of each trading period, a participating developing country Party shall retire a number of eligible units equal to its actual net emissions within the sector boundary during the trading period.
51. Any use of units acquired by developing country Parties for the purpose of meeting a trading reference level shall be supplemental to domestic actions.]
Modalities and procedures to be developed
52. The [supreme body] shall define modalities and procedures for the implementation of the new mechanisms at its [X] session, including:
(a) Requirements for the measurement, reporting and verification of emissions in a conservative and independent manner;
(b) Guidelines for issuance and accounting of units;
(c) [Eligibility criteria for participation in the [NAMA] [sectoral] mechanisms;]
(d) [Eligible [NAMAs] [sectors] under the [NAMA] [sectoral] mechanisms;]
(e) Requirements for determination of [NAMA][sectoral] boundaries and the treatment and minimization of potential leakage;
(f) The duration of [crediting] [trading] periods and the carry-over of units between periods;
(g) Procedures and mechanisms, including facilitative measures, in the event that a participating developing country Party does not achieve a reference level;
(h) Preventing double-counting of emission reductions [or removals] between any of the mechanisms;
(i) Further institutional arrangements.
