Prepared in collaboration with TERI, the report is the result of an extensive process of multistakeholder consultations. It can be downloaded at http://www.iisd.org/climate/global/dividend.asp.

The CDM has a host of objectives not directly related to climate change; it aims to bring host countries socio-economic and environmental benefits through technology transfer and foreign direct investment. In short, it aims to deliver a "development dividend." This report assesses the state of the emerging CDM regime, asking whether current trends presage a strong performance in this context. It addresses three concerns:

• That the quality of the projects (in terms of sustainable development benefits) is not what it might be;
• That the quantity of CERs generated is not what it needs to be, and;
• That the distribution of investment is skewed in ways that exclude the poorest developing countries.

The paper concludes that the CDM has the potential to deliver a strong development dividend, but that reforms are urgently needed. It offers a number of concrete recommendations.