The Clean Development Mechanism (CDM)

What is the Clean Development Mechanism  (CDM)?

The Clean Development Mechanism, or CDM for short, is a system set up under the Kyoto Protocol whereby developed nations may build clean energy facilities in developing nations and claim the emissions offset as their own to fulfill reduction goals or commitments. An example of this is the U.S. and other industrialized nations pursuing projects in China to build clean energy sources such as wind turbines and multi-use coal power plants (these plants are used for heat and energy, and are more energy efficient than conventional facilities) using the best available technology. This cuts down on global emissions of pollutants and greenhouse gases, as some sort of power plant would have been built anyway out of necessity, and building in the developing nation is usually cheaper than doing so in the developed nation's territory. Because the developed nation took the initiative and paid for the investment, they get to claim the reduction. This is important because it encourages developed nations to build these plants, but also to do so in nations that need the energy the most, and need to begin sustainable development. It also allows this new and innovative technology to be transferred to these developing nations while still profiting private corporations.