Clean Development Mechanism (CDM)

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A mechanism defined under Article 12 of the Kyoto Protocol through which investors (governments or companies) from developed (Annex B) countries may finance greenhouse gas (GHG) emission reduction or removal projects in developing countries (Non-Annex B), and receive Certified Emission Reduction Units (CERs) for doing so. The CERs can be credited towards the commitments of the respective developed countries. The CDM is intended to facilitate the two objectives of promoting sustainable development (SD) in developing countries and of helping industrialised countries to reach their emissions commitments in a cost-effective way.

Links

Carbon Offset Guide: Clean Development Mechanism (CDM)