The Clean Development Mechanism (Article 12)

Abstract

The Clean Development Mechanism (CDM) was the “Kyoto surprise”,¹ elaborated with little public debate in the final days of COP 3. Taking many developing countries’ concerns into account, the CDM establishes a multilateral framework for project-based joint implementation between industrialised and developing countries. This was only possible because some key negotiators built a winning coalition between AOSIS, several major developing countries and industrialised countries. AOSIS and other developing countries particularly vulnerable to climate change will benefit from a fee levied on CDM activities, developing countries in general will benefit from additional financial and technological resources transferred through the CDM, and industrialised countries were eager to achieve substantial participation of developing countries in the Protocol and to be able to earn emission credits from project-based activities in developing countries.