Clean Development Mechanism (CDM)

The Clean Development Mechanism (CDM) is a component of the Kyoto Protocol that allows developed countries to invest in carbon-reducing projects in developing countries. By doing so, they earn "carbon credits" that can be used to meet their own greenhouse gas emission reduction targets. This system aims to promote sustainable development, transfer clean technology, and help reduce global emissions effectively. Essentially, it creates a flexible and cost-effective way for countries to contribute to environmental goals while supporting growth in less affluent nations.