Clean Development Mechanism (CDM)

The Clean Development Mechanism (CDM) is a market-based mechanism established under the Kyoto Protocol that allows developed countries to earn emission reduction credits by investing in emission reduction projects in developing countries. These credits can then be used by these developed countries to meet their own emission reduction targets or sold on to other countries. The CDM aims to support sustainable development in specific parts of the world, promote the transfer of clean technologies, provide flexibility in meeting emission reduction targets, and contribute to global climate change mitigation efforts.