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Clean Development Mechanism (CDM)

The Clean Development Mechanism (CDM) is the element of the Kyoto Protocol that creates Certified Emission Reductions (CERs) from emission abatement projects in developing countries.  CERs can be used for compliance in the EU ETS and other national schemes, such as in Canada and Japan. 

The CDM is designed to provide finance to projects that will contribute to sustainable development in the country where the project is located. To qualify under the CDM a project must go beyond ‘business as usual’ and reduce emissions below what they ‘would have been’, assuming normal economic development.   

CDM project developers range from small cooperatives to large industrial corporations, and the CDM touches every economic sector, from agriculture to heavy industry.  Typical project types include renewable energy, methane capture from landfill, agriculture and coal mines, fuel-switch in boilers for heat and electricity generation, energy efficiency, and reduction of industrial gas emissions such as HFCs and N2O. 

BGC Environmental Brokerage Services helps project developers identify project opportunities, finance the project, create the credits and bring them to market to achieve the best price.  We can also introduce technology and package a full ‘build-own-operate’ service, where we combine project management, technology, and finance together to enable clients who don’t have the time or the resources to benefit from the CDM.