The clean develoment mechanism (CDM) was created to enable activities that result in emission reductions in developing countries to generate emission credits to be sold to industrialized countries for partially meeting emission reduction targets under the Kyoto Protocol. It was designed with the aim to help host countries achieve sustainable development and reduce emissions, while giving industrialized countries some flexibility in how they meet their emission targets.
This publication aims to increase knowledge and understanding of the CDM along with its relevance to economies in the Asia and the Pacific. It is intended to help stakeholders in the region become better prepared to contribute to the goals of the Paris Agreement.
The study focuses on the transition of CDM activities to Article 6.4 under the agreement, and the transition of certified emission reductions (CERs) for compliance with mitigation commitments expressed in nationally determined contributions (NDCs). Discussions and negotiations regarding the transition typically address the transition of three different parts of the CDM: baseline and monitoring methodologies and relevant components of the international institutional infrastructure; activities (i.e. CDM projects and programmes of activities); and CERs.