Clean Development Machanism in Pakistan
 
The Clean Development Mechanism (CDM) proposed under article 12 of the Kyoto Protocol is an important potential instrument to promote foreign investment in GHG emission reduction options while simultaneously addressing the issue of sustainable development.

 

 
 
 
The purpose of the Clean Development Mechanism (CDM) is to assist developing countries achieve sustainable development, and to assist industrialized countries achieve compliance with their emission targets under the Kyoto Protocol (KP) through the acquisition of certified emission reductions accruing from project activities. Such project activities are expected to mobilize financial and technological resources from the public and private sectors in industrialized countries to promote sustainable development in developing countries, and contribute to the ultimate objective of the UNFCCC.
 
In summary, the CDM allows carbon offset projects in non-Annex I Parties (essentially developing countries) to create Certified Emission Reductions (“CERs”) which can ultimately be used towards the national compliance obligations of Annex I Parties under the Kyoto Protocol. Article 12 also allows private companies to participate in CDM Projects. Once a CDM Project is registered by the CDM Executive Board, CERs from that project can be generated from 1 January 2000 and banked for use by Annex I Parties in the First Commitment Period.