The Kyoto Protocol: Carbon Pricing and Trade Prospects: The Clean Development Mechanism from the Perspective of the Developing Countries

Whatever their geographic origin from Earth, greenhouse gas (GHG) emissions have the same environmental impact. As such, the international community’s response to climate change requires a strong interdependence between Northern and Southern States, and, based on this fact, the parties to the Kyoto Protocol 1 established the Clean Development Mechanism (CDM). 2 The CDM is the only mechanism under the Kyoto Protocol involving countries that are not subject to binding GHG emission caps by the Protocol – so-called non-Annex I countries. 3 The idea was to reward States and non-State actors for saving GHG emissions with carbon pricing.