The Clean Development Mechanism (CDM) is one of the flexible mechanisms under the Kyoto Protocol (Article 12). It is an instrument that allows developed countries (Annex 1 Parties to the United Nations Framework Convention on Climate Change, UNFCCC) to receive Certified Emission Reductions (CERs) for facilitating emission reduction or carbon removal projects in developing countries or emerging markets (non-Annex 1 Parties). These projects contribute to sustainable development in the host country, and once they have been successfully implemented, CERs are issued by the CDM Executive Board. CERs can be used by Annex 1 countries to meet their emission targets specified in the Kyoto Protocol, and they can be traded on the international carbon market and in emission trading schemes like the EU ETS.
For more information visit www.unfccc.int