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A clean, reliable source of energy, and access to it, is a key element in supporting sustainable livelihoods in developing communities. Small-scale renewable energy projects introduced at the community level can reduce the emissions of greenhouse gases relative to their conventional counterparts, and are eligible for carbon financing through the Clean Development Mechanism (CDM).With the support of the Government of Canada, the Pembina Institute provided financial and technical support to developers of small-scale renewable energy and energy efficiency projects and assessed the viability of using the CDM to provide additional project financing.There were four key lessons learned from the exercise which provided the basis for PIAD's policy recommendations to increase the number of small-scale CDM projects: