The Clean Development Mechanism (CDM) of the Kyoto Protocol is a dual purpose mechanism aiming to reduce carbon emissions and promote sustainable development. However the CDM, as a market mechanism, seems incapable of fulfilling this latter purpose. Bui lding on the dichotomy between market liberalism and sustainable development as identified by D.M. Driesen, this paper argues that the CDM has become a schizophrenic mechanism trying to achieve two mutually exclusive aims. The paper discusses options for improving sustainable development in the CDM, but concludes these options are either impractical or impossible to pursue. The 'development dividend' (as per A. Cosbey, et al) is likely to forever be in arrears. The CDM should explicitly acknowledge its sustainable development failings. This brings into question the CDM's very existence.