The Kyoto Protocol, an international agreement, aims to reduce greenhouse gas emissions by 5.2% compared to 1990 levels by 2012. To achieve this, developed countries have introduced market-based tools like Emissions Trading and the Clean Development Mechanism (CDM). The CDM allows countries to invest in emission-reducing projects in developing nations, creating saleable credits for emissions. While the CDM has helped cut emissions cost-effectively, its role in fostering sustainable development has been overlooked. New strategies will replace or work alongside the CDM after 2020, potentially offering better support for sustainable development and biodiversity conservation.