|The Clean Development
Mechanism (CDM) is an arrangement under the Kyoto Protocol
allowing industrialized countries with a greenhouse gas
reduction commitment (called Annex 1 countries) to invest
in projects that reduce emissions in developing countries
as an alternative to more expensive emission reductions
in their own countries. A crucial feature of an approved
CDM carbon project is that it has established that the
planned reductions would not occur without the additional
incentive provided by emission reductions credits, a concept
known as "additionally".
The CDM allows net global greenhouse gas emissions to
be reduced at a much lower global cost by financing emissions
reduction projects in developing countries where costs
are lower than in industrialized countries. However, in
recent years, criticism against the mechanism has increased.
The CDM is supervised by the CDM Executive Board (CDM
EB) and is under the guidance of the Conference of the
Parties (COP/MOP) of the United Nations Framework Convention
on Climate Change (UNFCCC).
TBEC follows the policies of CDM and is proposing for
carbon credit inspection called “Certified Emission Reductions
The CDM project cycle entails seven basic stages as
shown in the following diagram.