China’s CDM trade threatened by uncertain carbon legislation

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China's dominant position as the top supplier of carbon credits generated from Clean Development Mechanism (CDM) projects is threatened by the current uncertainty surrounding future carbon legislation, according to some analysts.

CDM is a carbon market mechanism devised under the Kyoto Protocol. It allows participants in developed countries to invest in carbon reduction projects in developing countries and earn carbon credits, known as Certified Emission Reductions (CERs), in return. The generat