The Clean Development Mechanism UPSC- Sustainable Investment for the Future

The clean development mechanism has been designed to be a viable option for reducing the industrialized countries’ carbon emissions. This mechanism is built into the Kyoto Protocol, which was created after the United Nations Framework Convention on Climate Change came into existence.

In this article, we shall discuss the key facts and aspects of the Clean Development Mechanism, important from the perspective of the upcoming UPSC exam. Candidates must carefully analyse the information discussed further below.

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What is Clean Development Mechanism?

To combat climate change, the Kyoto Protocol has brought about a clean development mechanism. This agreement between developed and developing countries seeks to reduce emissions to preserve the ozone layer and strive for a cleaner environment.

Under this program, financially-reliant nations offer incentives towards developing countries to put into place projects which reduce greenhouse gases such as carbon dioxide, while at their own expense, they earn what are called CER credits or Emission Reduction Units that are equivalent to 1 tonne of CO2.

What is Carbon Credit?

  • Carbon credit exchange is a concept that aims to encourage countries to decrease Greenhouse gas emissions by rewarding those who reach their commitments and providing financial incentives to developing nations to do so.
  • Excess credits (acquired by exceeding the objective for reducing emissions) can be traded on the worldwide market.
  • One credit corresponds to one tonne of CO2 emissions avoided.
  • The initiative would increase financing to developing nations, where numerous projects are being implemented.

Objectives of Clean Development Mechanism

A clean development mechanism project must produce measurable improvements related to climate change mitigation. The project should provide real, long-term benefits, and they should be able to reduce greenhouse emissions in a material way. The objectives of a clean development mechanism are:

  • Contribute to the halting and prevention of climate change.
  • Assist developing countries in strategy development that is long-lasting.
  • Assist industrialized countries in reducing emissions and transitioning to greener energy sources.
  • Assist countries in implementing creative strategies for reducing emissions.
  • Diminishing the reliance on fossil fuels.
  • Employing animal excrement to create energy and actively managing it.
  • Decreasing the amount of pollution produced during the manufacturing process.

Operating Details of Clean Development Mechanism in India

Identification of the Project

This is the initial phase, and it entails conducting research to find a notion that has the capability to cut greenhouse gas emissions.

Approval From the Government

After the notion has been recognized, it is proposed to the Ministry of Environment, Forest, and Climate Change for approval by the Indian government.

Development of the Project

Research is being conducted to establish a baseline against which the shift in emissions will be monitored in accordance with the Kyoto Protocol.


The CDM Administrative Entity appoints an impartial body to verify the results of the preliminary identification survey.

Registration Process

Formal approval by the governing council transforms the selected project into a CDM project, granting it all the financial and legal amenities provided by the Kyoto Protocol.


Following registration, variations in greenhouse gas emissions are tracked over time, and appropriate improvements to the project’s execution are made.


A team of specialists verifies all of the data and results before sending them to be certified.


After thorough verification, the supervising authority acknowledges that the project has effectively decreased emissions in accordance with the plan.

Want to learn more about clean development mechanisms? With BYJU’s crisp, clean development mechanism PDF, you will get a detailed explanation of the concept!

Other Related Links

Environment And Ecology Notes For UPSC

UPSC Prelims Environment and Ecology Questions

Environment & Ecology Questions in UPSC Mains GS-3

GS 3 Structure, Syllabus and Strategy

Topic-wise GS 3 questions for UPSC Mains

IAS Prelims: UPSC MCQ On Environment

Frequently Asked Questions on Clean Development Mechanism


What is the main motto of the Clean Development Mechanism CDM?

The clean development mechanism was introduced with the intention of helping developing countries achieve a higher level of sustainable development and to ensure that developed countries comply with the targets defined under the Kyoto Protocol.


What is the position of India in the Clean Development Mechanism?

India is the major recipient, accounting for around 31% of global carbon trading through the clean development mechanism, which is estimated to generate at least -10 billion over time.


Which is the first company in India whose project was approved under the Clean Development Mechanism CDM of Kyoto Protocol?

Gujarat Fluoro-Chemicals (GFL), based here in Vadodara, India, is the first Indian company and one of only three in the world to have a reduction-of-emissions CDM project certified after review by the heavily-regarded UNFCCC (Union Nations Framework Convention on Climate Change) Executive Board.


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