Legal Reviews on Institutional Design of CDM

Additionality and sustainability of Clean Development Mechanism(CDM) are two basic principles set by Kyoto Protocol.Since its coming into being,CDM has made a positive influence,yet there are still some defects in its institutional design.It reflects that the emission reduction of the greenhouse gas is difficult to verify because its baseline scenario is fictitious;the large scale CDM projects crowd out many energy-efficient projects;the transaction procedures are complicated that lead to high transaction costs,the environmental-friendly technology transfer occurs lowly among the developed and developing states.Therefore,China should take an active part in stipulating some new game rules for the international trade and environment.