What is the Clean Development Mechanism (CDM) designed for?

The Clean Development Mechanism (CDM) is specifically designed to encourage emission reduction projects in developing countries. Established under the Kyoto Protocol, the CDM allows industrialized countries to invest in greenhouse gas (GHG) reduction projects in developing nations as a way to meet their own emission reduction targets. This mechanism creates a dual benefit: it assists developing countries in achieving sustainable development and helps developed nations by providing a cost-effective method to lower their emissions.

Through the CDM, various projects often focus on renewable energy, waste management, and energy efficiency, which not only contribute to reducing global greenhouse gas emissions but also promote sustainable development in the host countries. This alignment with developmental goals is key to the mechanism’s purpose, as it fosters both environmental protection and economic advancement in less affluent regions.