CDM

Full explainer

The Clean Development Mechanism is the project-based crediting mechanism established under the Kyoto Protocol that allowed industrialised countries (Annex I parties) to meet a portion of their emission-reduction commitments by financing projects in developing countries, in exchange for Certified Emission Reduction units (CERs).

With the Kyoto Protocol superseded by the Paris Agreement, the CDM is winding down. New activity has effectively ended and the institutional infrastructure is being repurposed under the Article 6.4 Paris Agreement Crediting Mechanism (PACM, sometimes A6.4M). Many Indonesian CDM projects — particularly POME biogas and grid renewable installations — have reached the end of their original crediting periods and either transitioned into voluntary standards (VCS, GS) or are being assessed for Article 6.4 transition.

Authoritative source

Related terms

• ACM0002
• AMS-III.H