Clean Development Mechanism
Version 1.0.0 · Updated 2026-07-30
CORE DEFINITION
A mechanism established under the Kyoto Protocol that allows developed countries to obtain emission reduction credits by investing in emission reduction projects in developing countries, thereby minimizing the global cost of emission reduction. It helps developing countries gain access to clean technologies and helps developed countries lower their emission reduction costs.
SCAFFOLDING EFFECT
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Global emission reduction cooperation. It provides an international cooperation framework for achieving global environmental goals. In investment decisions, it helps identify opportunities to invest in clean technology projects in developing countries, creating business value through dual benefits (environmental and economic).
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CDM: A flexible mechanism under the Kyoto Protocol where developed countries invest in emission reduction or afforestation projects in developing countries in exchange for Certified Emission Reductions (CERs) to meet their compliance obligations; it aims to reduce emissions at lower cost and contribute to the sustainable development of host countries.
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Source support: Explicit
- en.wikipedia.orghttps://en.wikipedia.org/wiki/Clean_Development_Mechanismverified
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