The clean development mechanism shall assist in arranging funding of certified project activities as necessary.
The CDM allows for carbon financing of project activities by creating a value for certified emission reductions (CERs). Once they have been generated, CERs can be used for compliance, or sold to entities that require them for compliance. The expected value of CERs therefore facilitates upfront financing for emission reduction projects under the CDM.
It is also one of the functions of the Conference of the Parties serving as the meeting of the Parties (COP/MOP) to arrange funding for CDM project activities.