What is CDM?
The Clean Development Mechanism (CDM) is one of the three market-based mechanisms that were established during the Kyoto protocol in 1997 to help participant countries meet their emission targets. The main concept behind the CDM was to encourage developed countries to fund emission reduction projects in developing countries, also serving to achieve sustainable development. The projects would then generate Certified Emission Reduction (CER) units which may be used in emission trading. The CER units can be used by developed countries to contribute to their emission reduction targets under the Kyoto Protocol. One CER unit is equivalent to the reduction of one metric ton of CO2 emissions. Continue reading