Review on Clean Development Mechanism (CDM) implementation in Malaysia

Clean Development Mechanism (CDM) appears to be a catalyst to reduce the cost of renewable energy projects in Malaysia. Carbon credit gained from developed countries enhances financial states of the nation and potentially pushes forward renewable energy industries. Most of the registered CDM projects are related to renewable energy, which recorded 69% out of total projects. This paper adopted to-date data from GreenTech Malaysia in order to present the CDM projects in energy sector. Institutional framework has been discussed to demonstrate the registration in CDM cycle. Although the extent of CDM's successfulness is controversial, the number of registered CDM projects in energy sector is in rising trend and helps in large amount of emission reductions in Malaysia particularly through biomass and biogas projects. CDM should encourage more new renewable technology including wind energy and tidal energy in Malaysia.