With agreement from 37 industrilized countries and the EU, Kyoto Protocol is a global world where the polluting party pays the cost of their emissions. The goal is to achieve emissions reductions, where it is the most cost-effective. Clean Development Mechanism (CDM) is a market based instrument under Kyoto Protocol of UNFCCC: - Assits developing countries in suistairiable development while at the same time contributing to the ultimate objective of the convention. - Developed countries to support project activities that reduce GHG emissions in the developing countries in return for Certified Emission Reduction (CER's)/Carbon Credits. The Kyoto Protocol sets GHG emissions redudction targets for developed countries including Economies Transition 5.2 percent, calculated from the. base-year emissions 1990.