Clean Development Mechanism

The Clean Development Mechanism (CDM) is a tool established under the Kyoto Protocol that allows industrialized countries to invest in emission reduction projects in developing countries as a way to meet their own greenhouse gas reduction targets. In exchange, these projects earn certified emission reduction (CER) credits, which can be traded or used to offset their emissions. This benefits both the investing country by helping them comply with climate goals and the developing country by promoting sustainable development and accessing finance for green initiatives.