Established under “Article 12” of Kyoto Protocol, the purpose of the clean development mechanism shall be to assist Parties not included in Annex I in achieving sustainable development and in contributing to the ultimate objective of the Convention, and to assist Parties included in Annex I in achieving compliance with their quantified emission limitation and reduction commitments.

The acquisition of certified emissions reductions may involve private and / or public entities, and is subject to whatever guidance is provided by the Executive Board of the Clean Development Mechanisms.

Under the CDM Annex I Parties may invest in eligible emissions reductions projects in non-Annex I Parties. The Kyoto Protocol requires that all CDM projects aimed to use the certified emissions reductions are subject to validation and verification / certification by a designated operational entity.