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Sectoral Approaches

As countries engage on a new round of negotiations under the UNFCCC, the need for a closer look at the contribution of various sectors and regions to global emissions has triggered some thinking on so-called sectoral approaches. Another element is the concerns that uneven CO2 constraints may encourage industrial relocation and some CO2 "leakage".

Further, most of the growth in some industries' output has been taking place outside the OECD regions, stressing the urgency to act outside the current Kyoto Protocol perimeter. The IEA has conducted several studies related to this question, with first a focus on the extension of the Clean Development Mechanism into a sectoral crediting mechanism. A more comprehensive analysis on sectoral approaches in heavy industry is also underway.