Clean Development Mechanism (CDM)

The CDM allows emission-reduction projects in developing countries to earn certified emission reduction (CER) credits, each equivalent to one ton of CO2. These CERs can be traded and sold, and used by industrialized countries to a meet a part of their emission reduction targets under the Kyoto Protocol.

The CDM is the main source of income for the UNFCCC Adaptation Fund, which was established to finance adaptation projects and programs in developing country Parties to the Kyoto Protocol that are particularly vulnerable to the adverse effects of climate change. The Adaptation Fund is financed by a 2% levy on CERs issued by the CDM.

The clean development mechanism was designed to meet a dual objective:

  • to help developed countries fulfill their commitments to reduce emissions, and
  • to assist developing countries in achieving sustainable development.

CDM projects earn tradable, saleable certified emission reduction (CER) credits that can be used by industrialized countries to meet a part of their emission reduction targets under the Kyoto Protocol. Benefits of CDM projects include investment in climate change mitigation projects in developing countries, transfer or diffusion of technology in the host countries, as well as improvement in the livelihood of communities through the creation of employment or increased economic activity.

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- National Potential of CDM

- Potential Sectors in Sri Lanka

- Kyoto Protocol

- Global Warming and GHG Effect

- Potential Impacts of Climate Change