Gender Dimensions of the Clean Development Mechanism

Established by the Kyoto Protocol, the Clean Development Mechanism (CDM) has two concurrent objectives: to reduce emissions and promote sustainable development. A market-based mechanism, the CDM generates funds through investments in emissions-reduction projects in developing countries. Upon successful implementation, these projects are issued credits known as Certified Emission Reductions (CERs). These CERs are tradable on the carbon market and can be bought and sold to help Annex I countries meet their emission-reduction commitments under the Protocol.

By identifying and funding cost-effective opportunities to reduce emissions, the CDM has become a major player in climate change finance. As of November 2010, more than 5,600 projects were in the CDM pipeline, including nearly 2,500 thathad been registered with the CDM Executive Board. Combined, primary and secondary CDM market transactions were worth nearly $33 billion in 2008 and nearly $21 billion in 2009.The mechanism has been less successful, however, in advancing its second objective and has been criticized for prioritizing emissions reductions over sustainable development.