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The Clean Development Mechanism (CDM) established under the Kyoto Protocol provides a unique opportunity for implementing projects in developing countries that reduce greenhouse gas emissions and promote sustainable development. As a leading source of greenhouse gas emissions, the transportation sector could play a central role in the CDM and in addressing climate change.

By delving into the key questions of the CDM within the context of the transportation sector of Chile, including project baseline, additionality, methodology, monitoring and leakage, the case studies presented in this report shed light on how a range of transportation projects fit within the current CDM. The report also examines how such projects could be better facilitated in the future, and where other policy approaches may be appropriate. Taking the lessons learned from these case studies and outcomes of an international workshop held in Chile, the report presents conclusions regarding how transportation projects currently fit into the CDM framework and potential changes for post 2012.