What is the main purpose of the Clean Development Mechanism (CDM) under the Kyoto Protocol?

The main purpose of the Clean Development Mechanism (CDM) under the Kyoto Protocol is to facilitate sustainable development and reduce greenhouse gas emissions. The CDM was established as a flexible mechanism that allows developed countries to invest in emission reduction projects in developing countries as a way to meet their own emission reduction targets. By doing so, it not only helps developed countries fulfill their obligations under the Kyoto Protocol but also assists developing countries in achieving their development goals while promoting sustainable practices.

This mechanism encourages investments in cleaner technologies and practices, aligning economic growth with environmental stewardship. By enabling countries to trade emissions reductions, the CDM fosters a cost-effective approach to reducing global emissions and encourages sustainable development initiatives in nations that may lack the resources to pursue such projects on their own.

While promoting renewable energy sources is a part of the initiative, it's a sub-goal rather than the main objective. Similarly, the CDM does entail financial assistance, but the overarching aim is more about creating a framework for emission reduction and sustainable development rather than simply providing financial aid. The CDM doesn't regulate global financial markets; rather, it operates within the frameworks established by the Kyoto Protocol related to climate change.