The paper was produced as a background document for the 2005 UN climate change conference. It presents recommendations for delivering sustainable development benefits through the CDM based on experience gained through the CDM Small Project Facility.
The Clean Development Mechanism (CDM) is one of three flexibility mechanisms established under the 1997 Kyoto Protocol, and it is the only mechanism open for participation by parties from both industrialized and developing countries. It has two complementary objectives: to support sustainable development objectives and to provide cost-effective emission reductions. The CDM presents an opportunity to support developing countries’ efforts to meet their national sustainable development objectives and deliver local development benefits1 through the development and implementation of carbon-reducing renewable energy and energy efficiency projects. Concurrently, this mechanism assists industrialized countries in reaching their targeted emission reduction commitments set under the Kyoto Protocol more cost-effectively through the purchase of the resultant carbon reduction credits.
