The most important vehicle in carbon trading is the clean development mechanism, or CDM. This is the deal struck under the Kyoto protocol which allows industrialized countries, with commitments to reduce their greenhouse gas emissions, to invest in projects that reduce emissions in the developing world. This is the foundation of carbon trading: approved CDM projects generate credits, which can then be traded. The whole arrangement is overseen by a branch of the United Nations Framework Convention on Climate Change (UNFCCC), and according to that group’s data, the vast majority of eligible projects so far have come from Asia: 1398 out of 1890 registered projects, the bulk of them in China.
Access intelligence that drives action
To unlock this research, enter your email to log in or enquire about access
