The rise or fall of CDM

The Clean Development Mechanism (CDM) is a key component of the Kyoto Protocol, currently far more widely used than the other flexible mechanism, Joint Implementation (JI). Under the CDM, businesses in countries with Kyoto targets can invest in emissions reduction projects in developing countries that don't have binding Kyoto targets. The credits generated - certified emissions reductions (CERs) - from these projects can then be used to offset the investor's own emissions reduction obligations.

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