in fact taxation may have much to offer and even be a more desirable instrument than trading examples are feed in tariff systems to stimulate decentralized power generation insurance or guarantee systems to cover policy and economic risks social impact bonds related to climate and agriculture tax credits on investment production sectoral crediting mechanisms for reductions beyond a certain baseline credits related to namas nationally appropriate mitigation action suppressed demand and blue carbon storage extensions of clean development mechanisms cdms countries may find certain types of instruments to be more or less compatible with prevailing political andor sociocultural conditions new instruments sometimes aggravate power asymmetries in relation to resource use