chapter  3
12 Pages

Current Status and Critical Issues of the CDM

ByKazuhito Yamada, Mariko Fujimori

The Clean Development Mechanism (CDM) is a project-based mechanism stipulated in the provisions of Article 12 of the Kyoto Protocol. The CDM is a scheme to realize greenhouse gas (GHG) emission reduction through cooperation between Annex I Parties to the United Nations Framework Convention on Climate Change (UNFCCC). The Annex I Parties are committed to certain GHG emission reduction targets under the Kyoto Protocol (so-called developed country), and non-Annex I Parties do not have any commitments to reduce GHG emissions (socalled developing country). The purposes of the CDM are to assist in accomplishing the GHG reduction targets of Annex I Parties (so-called investing countries), as well as to contribute to the sustainable development of non-Annex I Parties (so-called host countries). Under the CDM, basically project participants in Annex I Parties implement GHG emission reduction projects in cooperation with project participants in non-Annex I Parties within the territories of the latter Parties. Annex I Parties are eligible for all or part of the credits (certified emission reductions: CERs) resulting from the projects. Non-Annex I Parties will benefit (economically, socially, environmentally, and technologically) from CDM projects (Figure 3.1).1