1. What does NAE mean?
“Net Avoided Emissions” is an innovative market and non-market mechanism that contributes to the mitigation and moderation of current climatic change.
NA E grants possibilities to generate an economic value that is both directly linked to the reduction of carbon emissions and equivalent to the total price of these avoided emissions in their current market value through direct compensation.
2. Why is the NAE initiative necessary?
The NAE mechanism is a necessary cost- efficient alternative to cope with and stabilize the concentration of greenhouse gases (GHG) in the atmosphere in order to prevent hazardous consequences related to climatic change.
Through a monetary compensation, groups that have a marginal index and below average emissions of GHG will be able to maximize their climatic mitigation potential, and still maintain their financial standards through this change in their energetic model.
3. How does NAE relate to other climate change mitigation proposals?
NAE improves the cost effectiveness of the implementation of activities that contribute to the mitigation objectives under the UNFCCC and the Kyoto Protocol. The mechanism can facilitate the achievement of objectives under other conventions such as the convention on Biological Diversity, among others, simultaneously, and promote sustainable development.
4. Who will be the potential buyers of NAE units?
The buyers of NAE units will be developed countries and those countries that have voluntarily announced their mitigation targets, in numbers, to the UNFCCC to reduce GHG emissions or growth trajectories.
5. How will NAE help achieve climate change objectives?
NAE contributes to the achievement of objectives and commitments from developed countries that seek emissions reductions under the principle of “common but differentiated responsibilities” by providing a new mechanism, with environmental integrity and cost effectiveness, through the provision of economic incentives to developing countries.
6. Which countries can offer and implement the NAE mechanism?
The developing countries that can implement NAE are those that:
• Have marginal emission levels
• Seek to transform extractive-based economies to economies that export values and services.
• Can demonstrate biodiversity and cultural richness.
• Can commit to investing the resources generated by the NAE in climate change mitigation and adaptation actions.