The China CDM study analyzes key methodological issues related to the Clean Development Mechanism from China’ perspective. It includes six case studies of potential CDM projects - five power generation projects - and one landfill natural gas project and evaluates China’ CDM potential through 2010.

Based on the analytical results and experience gained through the China CDM study, and considering both the evolution of the international CDM regime and China' particular national circumstances, this report outlines a Chinese CDM approach that:

• Emphasizes sustainable CDM by ensuring the contribution of CDM project activities to sustainable development in China.
• Takes a proactive approach to take early advantage of CDM opportunities during the first commitment period.

The recommended approach is based on the following main insights from the methodological, case study, and modeling work undertaken by the study team:

• Implementation of the CDM in China can deliver significant local economic and sustainable development co-benefits.
• China’ CDM potential represents a substantial component of the global carbon market.
• CDM projects must be identified and developed within the next couple of years for China to capitalize on its CDM potential during the first commitment period from 2008 to 2012.
• Chinese enterprises face barriers to CDM development and implementation in practice.

Based on the assessment of the significance of CDM opportunities for China, the study considers barriers to CDM project implementation, including needs for capacity building based on China' special circumstances and interests. In addition, the study makes a number of recommendations for decision makers regarding:

• China’ CDM strategy, policy, and implementation plans: adopt a proactive and sustainable CDM policy.
• Urgent steps to facilitate CDM transactions: provide basic services to allow CDM in China; ensure that critical capacity is developed; and encourage CDM project identification and implementation.
• Longer-term considerations: consolidate results/enhance synergies across CDM initiatives and undertake follow-up analysis on key issues.

Combining a top-down with a bottom-up approach, the study sought to analyze China’ real circumstances. The study presents a comprehensive package of conclusions and recommendations to the Chinese Government, potential project proponents, and the interested national and international audience.