Sustainable transport projects in general reduce GHG emissions. Such projects could thus qualify for the CDM and benefit from the sale of GHG offsets. This makes good projects economically
more attractive and reduces barriers towards their successful implementation. The CDM can constitute an important additional

A sample of 52 Indian CDM projects registered until May, 20, 2006 is analyzed with respect to the testing of additionality. While almost all projects do additionality testing, only half of them identify alternatives. Barrier testing is almost universal but only a third of the projects do an investment analysis. Small scale projects are less likely to look at the impact of CDM

The objective of this article is to review how this remarkable turn of events unfolded, to examine whether and to what extent the CDM has overcome the structural difficulties highlighted above, and to discuss the future of the CDM in the context of global climate mitigation in the medium and long run. The article is structured as follows. It first reviews the history of the CDMfrom Kyoto to the present day. Then it describes the current status of the CDM. Next it assesses the relationship between the CDM and sustainable development.

A global carbon market has evolved in the wake of negotiations for the United Nations Kyoto Protocol. A number of distinct markets are encompassed within its remit, including a voluntary retail arm. Although the voluntary retail market is very small in comparison to other segments, it has large growth potential as it can extend to countries, customer groups and technologies not embraced by the existing compliance regime.

Under the World Bank's Sustainable Development Network Integration "Challenge Fund Initiative,' a joint "ESMAP - Carbon Finance Unit' team examined the synergies and possibilities of scaling up implementation of dispersed, demand-side EE efforts using the emerging programmatic CDM (pCDM) concept. This paper focuses on the key recommendations of this analysis, the potential scaling-up opportunities, and underlying operational synergies between EE programs in developing countries and pCDM.