The Clean Development Mechanism (CDM) is one of the “flexibility mechanisms” defined under the Kyoto Protocol. Its objective is to assist developing countries in achieving sustainable development and to mitigate the greenhouse gas emissions that cause climate change. Despite its great success, with more than 3,300 CDM projects registered within many countries and within many sectors, some important emission sources, sectors and countries are still underrepresented within the CDM. “Is the Clean Development Mechanism the right instrument to provide carbon finance to carbon emission mitigation activities in cities/urban areas?” “Under which circumstances can the CDM be best applied for the major emission sources in cities?” “What is the status of CDM in urban areas? What are the existing barriers and what are the solutions that will offer cities access to carbon finance?” These and other questions have been addressed in this feasibility study on urban CDM.