This document responds to a request made by the Subsidiary Body for Scientific and Technological Advice for a technical paper on the design and operation of the new marketbased mechanism, including on: its design and governance; the elaboration of the possible elements of its modalities and procedures; the meaning of “a net decrease and/or avoidance of global greenhouse gas emissions”; lessons learned from the mechanisms under the Kyoto Protocol that could be relevant to the further elaboration of the possible elements of the work programme to elaborate modalities and procedures for the new market-based mechanism; its relationship with the framework for various approaches and the mechanisms under the Kyoto Protocol; and its relationship to enhanced mitigation ambition. The document concludes with possible implications for the work programme to elaborate modalities and procedures for the new market-based mechanism.