Clean Development Mechanism (CDM)
The Clean Development Mechanism (the CDM) is the second of the flexible mechanisms defined in the Kyoto Protocol.
The CDM allows countries with emission reduction targets under the Kyoto Protocol (Annex 1 countries) to implement emission reducing projects in developing countries (non-Annex 1 countries). These projects generate Certified Emission Reductions (CERs) that can be used to comply with the emissions targets undertaken by the Annex 1 countries.
The emission reductions achieved are measured in tonnes of carbon dioxide equivalents (tCO2e), meaning that one CER represents one tonne of non-emitted or reduced CO2e. The CDM has the dual benefit of keeping the cost of reducing emissions down while contributing to sustainable development, one of the pillars of the Kyoto Protocol. A CDM project must generate emission reductions that can be proven to be additional to what would have occurred in a business-as-usual scenario, i.e. without the added incentive of the CDM.
For more information on the CDM, please visit the UNFCCC's website.
