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Clean Development Mechanism (CDM)

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A mechanism under the Kyoto Protocol through which developed countries may finance greenhouse-gas emission reduction or removal projects in developing countries, and thereby receive credits for doing so which they may apply towards meeting mandatory limits on their own emissions. The CDM allows greenhouse gas emission reduction projects to take place in countries that are signatories but have no emission targets under the Kyoto Protocol.

(World Bank November 10, 2009)

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