CLEAN DEVELOPMENT MECHANISM (CDM) MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024 to 2031)

Key Developments

• In March 2024, the Clean Development Mechanism (CDM) under the Kyoto Protocol, recognized as the world's first international carbon finance scheme, allows companies to acquire tradeable certified emission reduction credits by investing in energy conservation and renewable energy projects in developing countries. Despite its initial success, the mechanism faced a collapse during the 'carbon panic' of 2012. This analysis examines the reasons behind the CDM's downfall and its implications for negotiations surrounding the Paris Agreement. Although the mechanism has seen a revival due to renewed interest from the U.S. and developing nations, the structural vulnerabilities of carbon financing persist, making it susceptible to future panics.