Economics Carbon Trading Questions
The Clean Development Mechanism (CDM) is a flexible mechanism established under the Kyoto Protocol, an international agreement aimed at reducing greenhouse gas emissions. The CDM allows developed countries to invest in emission reduction projects in developing countries as a way to offset their own emissions. These projects can include renewable energy projects, energy efficiency initiatives, and other sustainable development activities. In return, developed countries receive Certified Emission Reduction (CER) credits, which can be used to meet their emission reduction targets. The CDM aims to promote sustainable development in developing countries while helping developed countries achieve their emission reduction goals.