CDM stands for Clean Development Mechanism which is a mechanism defined in Article 12 of the Kyoto protocol to achieve the following 2 objectives:
1. To assist countries not included in Annex I countries (especially developing countries) in contributing to the sustainable development which is to prevent climate change.
2. To assist Annex I countries in achieving compliance with their greenhouse gas reduction commitment.
Under CDM, the developed countries that have a commitment to reduce greenhouse gas emissions under Kyoto protocol can invest in green projects in developing countries. In this process they can claim the carbon credits equivalent to the reduction in the amount of CO2 emissions.