Clean Development Mechanism (CDM), is one of the flexible compliance mechanisms introduced in the Kyoto Protocol. The core element is to allow the transfer and acquisition of project-level emission reduction offsets between Annex 1 Parties (developed countries) and non-Annex 1 Parties (developing countries), implement GHG emission reduction projects in developing countries.

There are generally eight basic steps in the CDM project cycle: project design and description; national approval; project validation; project registration; project implementation; project monitoring; project verification; and project issuance of CERs.