Clean Development Mechanism

The Clean Development Mechanism (CDM) under the Kyoto Protocol (KP) of the United Nations Framework Convention on Climate Change (UNFCCC) establishes in Art. 12 of the KP a Clean Development Mechanism, which requires, cf. Art 12.5(a), "voluntary participation of each Party involved".

The Clean Development Mechanism (CDM) is one of the flexible mechanisms under the Kyoto Protocol. The CDM offers developed countries (Annex I countries) the possibility to engage in economically and environmentally competitive emission reduction projects in developing countries (Non-Annex 1 countries). Certified emission reductions (CERs), equivalent to one tonne of CO2, will be issued by CDM Executive Board after completion of the CDM process. These CERs can then be used by a developed country to meet their Kyoto Protocol target or can be converted into credits that can be used in the European Union Emissions Trading Scheme (EU ETS).

A CDM project must contribute to sustainable development and provide emission reductions that are additional to what would otherwise have occurred. The projects must qualify through a rigorous and public registration and issuance process. Approval is given by the Designated National Authorities. Public funding for CDM project activities must not result in the diversion of official development assistance. The mechanism is overseen by the CDM Executive Board, answerable ultimately to the countries that have ratified the Kyoto Protocol.


In order for a project to be eligible for CDM, it must meet the following criteria:

  • Reduction in GHG Emissions covered by the Kyoto Protocol (CO2, CH4, N2O, SF6, HFCs, PFCs)
  • Host country (Samoa) must be a Party to the Kyoto Protocol
  • Contribution to Sustainable Development of Samoa
  • Additionality (demonstration that the project would not have happened without the incentive from CDM revenue)
  • Emission reduction must be real, measurable and long term
  • Sector must be eligible

Link to UNFCCC CDM Website: http://cdm.unfccc.int/

Created on : 21/09/2010  
Copyright 2010-2017 by Ministry Of Finance
Last Updated : 29/05/2017
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