Penny Wise, Pound Foolish? Is the Original Intention of Cost Efficient Emissions Reduction through the CDM being Fulfilled?

This technical document analyzes the Clean Development Mechanism (CDM) and argues that it is time to rethink the approach to promoting emissions reduction in developing countries with a view to bringing them in better alignment with reductions undertaken in developed countries. It stresses that while CDM promotes emissions reduction in developing countries, it does not reduce the global cost of reduction. It only shifts the burden of investment.