CLEAN DEVELOPMENT MECHANISM (CDM)

Mechanism defined in Article 12 of the Kyoto Protocol, which enables investors (public authorities or private companies) from developed countries (listed in Annex B) to finance projects to reduce or eliminate greenhouse gas emissions in developing countries (not listed in Annex B), and to receive Certified Emission Reductions (CERs) for doing so, which the developed countries concerned can credit towards their emission reduction commitments.