Success Factors for Clean Development Mechanism Implementation in Malaysia

Abstract

The Clean Development Mechanism (CDM), established under the Kyoto Protocol, is one of 
the market-based mechanisms developed to assist industrialized countries mitigate greenhouse 
gas (GHG) emissions, achieve emission reduction targets, and at the same time promote sus
tainable development in developing countries. The CDM, which provides flexibility and cost
effectiveness in meeting GHG emission reduction targets, has captured interest globally. CDM 
implementation is expected to generate benefits, give developing countries a sense of owner
ship, and share the global load in tackling global warming and climate change. However, CDM 
implementation faces several complications. The successful participation of developing coun
tries in emission reduction projects presents ongoing challenges, which inhibit their drive to
wards sustainable development goals. Through a comprehensive review of the literature and 
theoretical analysis, several factors have been identified as significant to successful CDM im
plementation in Malaysia. These success factors, which include regulation and a legal frame
work, competitive advantage, green supply chain, ethical values, financial benefits, and tech
nology transfer, are presented and the importance of each factor is discussed.