Clean Development Mechanism (CDM)
The Clean Development Mechanism (Article 12 of the Kyoto Protocol) allows Annex I countries to purchase emission reduction certificates through projects in non-Annex I countries. The peculiarity of the CDM is that, in contrast to other mechanisms, participation of the developing countries is provided for, meaning of the countries having no qualified emissions limitation or reduction commitments. For the developing countries, CDM therefore represents an important instrument for technology transfer and ought to contribute to sustainable development. Participation in CDM projects takes place by mutual agreement between the investor and home countries.
While carrying out a CDM project, an Annex I country or an institution or enterprise from an Annex I country A participates in an emissions reducing project in a developing country (Non Annex I country) B and can purchase resulting Certified Emission Reductions (CERs).
