*3 The Clean Development Mechanism (CDM)

The CDM is one of the Kyoto Mechanisms stipulated in the Kyoto Protocol. It is a system under which projects leading to emissions reduction or absorption of greenhouse gas in a developing country (the host country) are carried out with the financial and technical assistance, etc., of a developed country (the investing country), and if there is an additional emissions reduction or absorption compared to the case in which the project is not implemented, credits are issued through a specified procedure which the investing country can use for achieving its reductions target.