Clean Development Mechanism (CDM)

The Clean Development Mechanism (CDM) is a market-based approach established under the Kyoto Protocol to promote sustainable development while reducing greenhouse gas emissions. It enables industrialized countries or organizations to invest in emission reduction projects in developing countries, earning certified emission reduction (CER) credits in return. These credits can then be applied to meet their emission reduction targets under the Kyoto Protocol.

Projects eligible under the CDM include a diverse range of initiatives, such as renewable energy installations, energy efficiency improvements, and reforestation projects. By fostering technology transfer and supporting sustainable economic growth in developing nations, the CDM not only helps to mitigate climate change but also contributes to local socio-economic benefits, such as job creation and improved air quality.

Overall, the Clean Development Mechanism serves as a vital tool in the global effort to combat climate change, offering a flexible and cost-effective solution for reducing carbon footprints while stimulating green economic development in less economically developed regions.