The Clean Development Mechanism

The Clean Development Mechanism (CDM) is a flexible mechanism under the Kyoto Protocol. It aims to provide low-cost abatement options for industrialised countries with reduction obligations and at the same time to enable ecologically sustainable economic growth in developing countries through technology and financial transfers. Annika Schulte analyses the criterion of additionality of emission reduction of CDM projects and the definition of the reference scenario. It provides answers to the following questions: How can it be demonstrated that a project would not have taken place without the additional CDM incentive? How should the baseline for a CDM project theoretically be set so that the CDM certificates are confronted with a real reduction in greenhouse gases? Why is the current practice of the additionality test.