Clean Development Mechanism (CDM)
A facility created under the Kyoto Protocol, which allow Annex I countries to finance emissions reducing projects in developing countries that are party to the Kyoto Protocol then to use the resulting "certified emissions reductions" ("CERs") to offset their own emissions.
"Glossary and Abbreviations", Barnsley, Ingrid, United Nations University Institute of Advanced Studies (UNU-IAS) 2009, "UNUIAS Guide, Reducing Emissions from Deforestation and Degradation in Developing Countries (REDD): A Guide for Indigenous Peoples." January 2009 http://www.ias.unu.edu/resource_centre/2009_REDD_Guide.pdf
One of the three market-based mechanisms under the Kyoto Protocol to the UN Framework Convention on Climate Change (UNFCCC), whereby developed countries may finance greenhouse gas emissions-avoiding projects in developing countries, and receive credits for doing so which they may apply towards meeting mandatory limits on their own emissions.
Glossary of Terms for Negotiators of Multilateral Environmental Agreements, UNEP, 2007.