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Clean Development Mechanism (CDM) is a mechanism under the Kyoto Protocol that was created in the third Conference of Parties in 1997. This book examines the current status and characteristics of CDM projects in developing countries. Secondly, it clarifies ways to adjust the differences in concerns between China and Japan over economics, the environment, and climate change, and to analyze whether sustainable development impacts can encourage the Chinese government to promote climate change mitigation measures. The book establishes an evaluation framework of CDM that can take sustainable development impacts into account and that can provide useful information when choosing socially efficient CDM projects.