Clean Development Mechanism
This glossary is far from complete. We are constantly adding terms.
Countries under the Kyoto protocol are divided into two type: mostly developed countries (called Annex B countries) which have reduction targets and most developing countries which have no targets.
The Clean Development Mechanism (CDM) gives credit to Annex B countries if they implement a greenhouse gas reducing project in a non-Annex B country. These credits can than be exchanged on the open market. Its purpose is to facilitate technology transfer.
Projects must be new projects or modifications to existing projects which reduce greenhouse gas emissions beyond the current project. Already existing projects are not eligible for CDM credits.