Clean Development Mechanism
The purpose of the CDM is to promote clean development in developing countries, i.e., the "non-Annex I" countries (countries that aren't listed in Annex I of the Framework Convention). The CDM is one of the Protocol's "project-based" mechanisms, in that the CDM is designed to promote projects that reduce emissions.
The Clean Development Mechanism (CDM) of the Kyoto Protocol allows projects in developing countries to generate emission credits if they result in emission levels lower than would otherwise be the case; these credits can be marketed and eventually counted against a developed country's emission obligation. The TUV NORD provides analysis on the effectiveness of the different emissions trading scheme options, both at international and domestic level.