The Kyoto Protocol has developed a new financial mechanism for funding of renewable energy and energy efficiency projects in developing countries: the Clean Development Mechanism (CDM).
With the implementation of a MDL project in a developing country (with no commitment for emission reduction), the avoided emission can be commercialized in developed countries with emission reduction targets.
The MDL offers a financial flow, promotes the transfer of clean technology to the developing countries and allows reducing the cost of fulfilment of the most pollutant countries.
Because of its high potential and institutional interest, Latin America is one of the geographic areas most interested in the implementation of CDM projects.
Clean Development Mechanism - United Nations Framework Convention on Climate Change


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