NDCs and promote greater ambition, while at the same time fostering sustainable development and encouraging broad participation from both the private and public sectors. Market mechanisms are therefore seen as one important component in the collective action to achieve the long-term goals of the Paris Agreement. In principle, the role of markets within the agreement context is to enable all parties engaged in mitigation actions to implement these in a cost-effective manner, and at the same time provide an opportunity to enhance their ambition.