The second of the Kyoto protocol’s reduction incentives. It issues tradable carbon allowances for Article I countries to trade, additionally encouraging Annex I countries to host projects in one another.
The CDM rewards developed countries who aid developing countries in their sustainable development, by issuing sustainable development projects with Certified Emissions Reductions (CER).
Adopted in 1997, it came into effect in 2005: the first to give GHG emissions reductions targets per country to most Annex I countries.