1. Clean Development Mechanism (CDM) in respect of carbon credits is one of the Kyoto Protocol Mechanisms.
2. Under the CDM, the projects handled pertain only to the Annex-I countries.
Which of the statements given above is/are correct?
Explanation
The Clean Development Mechanism (CDM) under the UNFCCC enables developing countries to receive funds from developed nations for adopting technologies that reduce green-house gas emissions. It allows developed countries to invest in emission-reduction projects in developing countries. In return, these developed countries earn carbon credits while promoting sustainable development.
Statement 1 is correct. CDM is indeed one of the Kyoto Protocol mechanisms designed to help reduce greenhouse gas emissions by allowing developed countries to invest in emission-re-duction projects in developing countries.
Statement 2 is incorrect. CDM projects are implemented in developing countries, not in Annex I countries (which are mostly developed nations). The idea is that developed countries (Annex I) can earn carbon credits by funding emission-reducing projects in developing countries (non-Annex I).