The Clean Development Mechanism (CDM) has become one of the world’s most important carbon market instruments, diffusing carbon price signals worldwide, stimulating major private investments in climate change mitigation projects worldwide, and supporting the development of mitigation action in developing countries. Following the recent decline of the market conditions, the situation of project activities, in addition to domestic and international capacities related to the CDM, have noticeably deteriorated.

This research conducted by NewClimate Institute and Ecofys on behalf of the German Federal Ministry for Environment, Nature Conservation, Building and Nuclear Safety (BMUB), seeks to address major gaps in the current understanding regarding the status of individual CDM projects worldwide, as well as the barriers and means for supporting the continuation of these projects. A large representative sample of projects were evaluated individually to extract insights and lessons regarding national situations, technology-specific considerations, and the CDM as a whole.