The Clean Development Mechanism: Kyoto comes home to roost

The Clean Development Mechanism - a cornerstone of the Kyoto Protocol which allows industrialised nations to invest in emission reduction projects in the developing world - is inching towards reality. This summer, the European Commission unveiled plans to let companies buy CDM credits to help meet their targets under the EU emissions trading scheme. But long-running controversies over the CDM's environmental integrity show no sign of abating - leaving potential purchasers facing huge uncertainties about the likely availability of CDM credits, the impact on prices in the EU carbon market, and the risk of attracting criticism from environmental groups.

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