The assessment literature on climate change solutions to date has emphasized technologies and options based on cost-effectiveness analysis. However, many solutions to climate change mitigation misalign with such analytical frameworks. Here, we examine demand-side solutions, a crucial class of mitigation options that go beyond technological specification and cost-benefit analysis. To do so, we synthesize demand-side mitigation options in the urban, building, transport, and agricultural sectors. We also highlight the specific nature of demand-side solutions in the context of development.

The review of policies being implemented in China, the EU, India and the US presented in this report has also identified some key challenges that we must address if we are going to realize the mitigation potential of the building sector. Chief among these is the need to improve our monitoring of the impact that our policies are having. Lack of measured and verifiable data on the influence of policies on building energy performance currently hampers our ability to assess and continuously improve their effectiveness.

In April 2010 the Tokyo Metropolitan Government launched the Tokyo Cap-and-Trade Program to reduce energy consumption-related CO2 emissions at the city level. This is the world's first cap-and-trade programme to cover buildings in the commercial, industrial and public sectors. Its main aim is to reduce CO2 emissions from energy consumption in existing buildings in urban areas; therefore, it is called an ‘urban cap-and-trade programme’.

The Shenzhen ETS is the first urban-level “cap-and-trade” carbon emissions trading scheme to operate in China. This paper gives an overview of the economic and emissions situation in Shenzhen and focuses on the development of the Shenzhen ETS regulatory framework. It is devised as an ETS with an intensity-based cap, output-based allocation and a market for trading of allowances. The design of the Shenzhen ETS attaches great importance to coordinate the dynamic relationships between economic growth, industrial transition and emissions control.