Kyoto Flexible Mechanisms
Clean Development Mechanism and Joint Development Programs
The Kyoto Protocol, in addition to emissions trading, includes two other types of market-based programs, known as “clean development mechanism” (CDM) and “joint implementation” (JI). Together with emissions trading, the three programs are referred to as “flexible mechanisms.”
CDMs are those in which developed countries finance emissions-avoiding projects in developing countries and receive credit for doing so. These credits are referred to as “certified emission reductions.”
JI involves climate change prevention projects under which developed countries receive “emission reduction units" for financing projects that reduce net emissions in another developed country.
• CDM portal on UNFCCC site
• Information on registered CDM projects
• JI portal on UNFCCC site
10 Years of Experience in Carbon Finance - Insights from working with the Kyoto mechanisms (The World Bank) (May 2010)
This report covers the World Bank’s experience with the Kyoto Protocol’s project-based mechanisms, known as the Clean Development Mechanism and Joint Implementation, over the past 10 years. The CDM, which is the larger of the two based on number of projects, emission reductions and host countries, is the focus of the report. However, JI also is covered.