CDM (Clean Development Mechanism)

The Clean Development Mechanism (CDM) is a framework established under the Kyoto Protocol that allows developed countries to invest in carbon-reduction projects in developing nations. By funding these projects, like renewable energy or reforestation, developed countries can earn carbon credits, which they can use to meet their own greenhouse gas reduction targets. This mechanism promotes sustainable development by helping poorer nations gain access to cleaner technologies, while also providing a cost-effective way for richer countries to combat climate change. Ultimately, CDM aims to reduce global greenhouse gas emissions collaboratively.