CLEAN DEVELOPMENT MECHANISM (CDM)

The CDM is one of the flexibility mechanisms (along with the JI and the EU-ETS) provided by the Kyoto Protocol (Art. 12) in order to abate climate change mitigation costs. It allows industrialized countries (Annex B Parties) with caps on emissions to execute projects for reducing greenhouse gases (GHGs) in developing countries where no emission reduction targets apply (Non Annex B parties). In particular, the country which implements the project earns emissions rights in the form of carbon credits (CERs: Certified Emission Reduction Units) that can be traded and used to meet the Kyoto reduction targets. The host Party can benefit from foreign investment and technology transfer.
Bibliography
http://unfccc.int/kyoto_protocol/mechanisms/clean_development_mechanism/items/2718.php
http://unfccc.int/kyoto_protocol/items/2830.php

Editor: Melania MICHETTI
© 2009 ASSONEBB