Three international "flexibility" mechanisms are included in the Kyoto Protocol to facilitate the cost-effective fulfilment of national emissions reduction commitments for industrialized countries. The mechanisms provide incentives for these countries to meet their greenhouse gas emissions reduction targets. The three Kyoto Mechanisms are: international emissions trading; joint implementation; and the clean development mechanism.

The Climate Change Knowledge Network focused its collaborative research on issues surrounding the CDM. Specific network projects included:

Establishing National Authorities

One of the key requirements for developing country participation in the Clean Development Mechanism, National Authorities offices are an important first step toward involvement in this flexibility mechanism. Released in June 2002, the book “Establishing National Authorities for the CDM” (713 kb) identifies the specific steps needed to establish national programs and, by presenting various Latin American experiences, encourages other countries to adapt the lessons learned to their local needs. The book incorporates the evolving decisions on the CDM up until COP-7, as well as specific requests from developing countries.

CCKN members involved: CSDA and IISD

Benefit Sharing in the CDM

This project sought to provide a better understanding of the potential benefits for both investing countries and host countries under the Clean Development Mechanism, and to develop possible approaches to sharing these benefits.

CCKN members involved: IDEE/FB, CICERO

CDM Design Project

In response to struggles by negotiators and policy-makers with the basic design and features of the Clean Development Mechanism, this project examined the characteristics of various design options and explored how an "open architecture" CDM might operate.

CCKN members involved: WRI, CSDA

Economies in Transition as CDM Investors

This project aimed to assess the feasibility of countries with economies in transition that are included in Annex B of the Kyoto Protocol participating in the Clean Development Mechanism. It was suggested that this could be done by building on these countries’ capabilities for co-generation, combined heat and power generation, and small hydro-power projects, and through the links these countries have with economies in transition that are not included in Annex B.

CCKN members involved: UKMA, IDRC