CLEAN DEVELOPMENT MECHANISMThe CDMClean Development Mechanism - a mechanism for project-based emission reduction activities in developing countries (non-Annex B countries). Carbon credits (CERs) are generated from these projects. is a mechanism for project-based emission reduction activities in developing countries (non-Annex B countriesThese are the emissions-capped countries listed in Annex B of the Kyoto ProtocolThe Kyoto Protocol originated at COP-3 to the UNFCCC in Kyoto, Japan, December 1997. It details emission obligations for Annex B countries and specifies the terms for JI, CDMClean Development Mechanism - a mechanism for project-based emission reduction activities in developing countries (non-Annex B countries). Carbon credits (CERs) are generated from these projects. and emissions tradingA market-based approach to achieving environmental objectives that allows sources reducing emissions below their target to sell the excess reductions to offset emissions at another source.. It entered into force on 16 February 2005.. Referred to in the Kyoto ProtocolThe Kyoto Protocol originated at COP-3 to the UNFCCC in Kyoto, Japan, December 1997. It details emission obligations for Annex B countries and specifies the terms for JI, CDMClean Development Mechanism - a mechanism for project-based emission reduction activities in developing countries (non-Annex B countries). Carbon credits (CERs) are generated from these projects. and emissions tradingA market-based approach to achieving environmental objectives that allows sources reducing emissions below their target to sell the excess reductions to offset emissions at another source.. It entered into force on 16 February 2005..). Carbon credits (CERs) are generated from these projects.

The Clean Development MechanismThe CDMClean Development Mechanism - a mechanism for project-based emission reduction activities in developing countries (non-Annex B countries). Carbon credits (CERs) are generated from these projects. is a mechanism for project-based emission reduction activities in developing countries (non-Annex B countriesThese are the emissions-capped countries listed in Annex B of the Kyoto ProtocolThe Kyoto Protocol originated at COP-3 to the UNFCCC in Kyoto, Japan, December 1997. It details emission obligations for Annex B countries and specifies the terms for JI, CDMClean Development Mechanism - a mechanism for project-based emission reduction activities in developing countries (non-Annex B countries). Carbon credits (CERs) are generated from these projects. and emissions tradingA market-based approach to achieving environmental objectives that allows sources reducing emissions below their target to sell the excess reductions to offset emissions at another source.. It entered into force on 16 February 2005.. Referred to in the Kyoto ProtocolThe Kyoto Protocol originated at COP-3 to the UNFCCC in Kyoto, Japan, December 1997. It details emission obligations for Annex B countries and specifies the terms for JI, CDM and emissions tradingA market-based approach to achieving environmental objectives that allows sources reducing emissions below their target to sell the excess reductions to offset emissions at another source.. It entered into force on 16 February 2005..). Carbon credits (CERs) are generated from these projects. (CDM) is a permission outlined in the Kyoto ProtocolThe Kyoto Protocol originated at COP-3 to the UNFCCC in Kyoto, Japan, December 1997. It details emission obligations for Annex B countries and specifies the terms for JI, CDM and emissions tradingA market-based approach to achieving environmental objectives that allows sources reducing emissions below their target to sell the excess reductions to offset emissions at another source.. It entered into force on 16 February 2005., under Article 12. The CDM lets a country that is committed to lowering or limiting emissions under the Kyoto Protocol implement an emission-reduction project in a developing country. A carbon project such as this can earn certified emission reductionA tradable credit generated and issued from a CDM project that represents GHGGases in the earth’s atmosphere that absorb and re-emit infra-red radiation. These gases occur through natural and human-influenced processes. Carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulphur hexafluoride are the 6 GHGs subject to emission reduction in the Kyoto Protocol. emission reductions equivalent to one tonne of CO2eOne tonne of carbon dioxide equivalent (CO2e) is used as the standard measurement in the carbon market. It is a measure of the global warming potential of various greenhouse gases.. (CERCertified Emission Reduction - A tradable credit generated and issued from a CDM project that represents GHG emission reductions equivalent to one tonne of CO2e.) credits, which may then be sold or traded. Each CERCertified Emission Reduction - A tradable credit generated and issued from a CDM project that represents GHG emission reductions equivalent to one tonne of CO2e. is the equivalent of one tonne of CO2.

So the clean development mechanismThe CDM is a mechanism for project-based emission reduction activities in developing countries (non-Annex B countriesThese are the emissions-capped countries listed in Annex B of the Kyoto Protocol. Referred to in the Kyoto Protocol.). Carbon credits (CERs) are generated from these projects. makes carbon tradeable?

The CDM makes carbon into a global investment with an environmental aspect. By standardising emissions into offset instruments (CERs) each worth one tonne of CO2 it allows a market.

So the clean development mechanismThe CDM is a mechanism for project-based emission reduction activities in developing countries (non-Annex B countriesThese are the emissions-capped countries listed in Annex B of the Kyoto Protocol. Referred to in the Kyoto Protocol.). Carbon credits (CERs) are generated from these projects. allows investment in developing countries?

A CDM project may involve a village changing from polluting, fossil-fuel intensive heating to solar panels, for instance. The CDM therefore stimulates sustainable development and helps to reduce emissions. This gives industrialised countries the chance to offset their emissions and meet their emission-limitation or emission-reduction targets.

How does the clean development mechanismThe CDM is a mechanism for project-based emission reduction activities in developing countries (non-Annex B countriesThese are the emissions-capped countries listed in Annex B of the Kyoto Protocol. Referred to in the Kyoto Protocol.). Carbon credits (CERs) are generated from these projects. work?

CDM projects have to provide emission reductions that are an addition to what would otherwise have happened. That is, credits bought under the CDM have to be additional. CDM projects also have to fulfil strict criteria including registration and issuance processes.

Who oversees the CDM?

All CDM projects are overseen by the clean development mechanism Executive Board. The board is effectively answerable to those countries that have agreed with and ratified Kyoto Protocol.

How big is the CDM?

Since 2006, when the clean development mechanism started, over 1,650 projects have been registered. This has produced certified emission reductions that are equal to 2.9 billion tonnes of CO2 and CO2 equivalent.