Carbon Markets

Clean Development Mechanism

From pollution and expenses to reduction and income.
How does it work?

• Entities in developed countries are required by law to meet emission reduction quotas.


• Entities in developing countries act to reduce emission of greenhouse gases. Through the CDM process, they are granted emission reduction credits.


• Emission reduction credits rights can be purchased by developed countries by investing in the project ahead of registration, or by purchasing the reduction credits after they are issued.


• The monetary value of emission reduction credits depends on the stage of the project in the registration process, project characteristics and the price of a ton of CO_2e on the open market.


• The trade in emission reduction credits is enabled after project documents are prepared, submitted and registered by the United Nations.

Examples of greenhouse gas emission reduction projects

• Methane capture and treatment from waste disposal and sewage treatment systems.


• Installation of cogeneration and energy saving systems in industry.


• Switching to natural gas and renewable technologies for electricity production.


• Reducing the emission of nitrogen in fertilizers, agriculture and security industries.


• Upgrading lighting and air conditioning systems in public buildings, in industry and in large organizations.